Union Bearings (India) Ltd.
||ISIN Code: INE670F01011
05:30 | 01 Jan
Union Bearings (India) Ltd
05:30 | 01 Jan
Union Bearings (India) Ltd
Union Bearings (India) Ltd. (UNIONBEARINGS) - Director Report
Company director report
UNION BEARINGS (INDIA) LIMITED
ANNUAL REPORT 2004-2005
We are happy to present before you the Eighteenth Annual Report of the
Company for the year ended 31st March, 2005.
FINANCIAL RESULTS: ( Rs. in Lacs )
SALES AND INCOME 7.79 27.29
PROFIT BEFORE INTEREST, DEPRECIATION AND TAX 0.54 1.53
LESS: DEPRECIATION 1.04 1.06
NET PROFIT FOR THE YEAR 0.04 0.47
LESS: DEFERRED EXPENSES WRITTEN OFF 0.00 2.36
NET PROFIT (LOSS) FOR THE YEAR 0.04 (1.89)
ADD: SURPLUS BROUGHT FORWARD FROM LAST YEAR (8.06) (6.18)
BALANCE CARRIED FORWARD TO THE NEXT YEAR (8.01) (8.06)
The company has continued dealing in Automobile Bearings. The Company has
bought a land at Shapar - Rajkot, for establishing its own manufacturing
infrastructure. The Company has filed a suit against the seller for
specific performance. Since the suit is becoming mature and directors are
hopeful to settle the case. In view of this The company has started
manufacturing activities initially on job work basis. The directors are
confident to get back the market of the Company since the Trade Mark
`UNIMAC' in automobile bearings has established goodwill for more than
The Company carried on activities without any working capital support from
any bank the performance of business remained at low level during the
Your company is now endeavoring to acquire land at Shaper - Rajkot to
start its own manufacturing unit at the earliest. The company therefore
established office at Shaper - Rajkot.
DECLARATION OF DIVIDEND
In view of the marginal profit during the year, your Directors do not
propose any dividend for the year.
REPORT U/S. 271 (1)(e) OF THE COMPANIES ACT
The report concerning conservation of energy, technology, absorption,
foreign exchange earning and outgo is 'NIL' since the Company has not
continued manufacturing, activities. However, the Company is giving due
importance to the in-house research and development. The company will make
all efforts to economies direct and indirect expenses both by austerities
and exploring methods of conserving energy, recycling of heat and power
REPORT U/S 217(2A) OF THE COMPANIES ACT
The information required u/s. 217(2A) of the Companies Act, 1956 read with
Companies (Particulars of Employees) Rules, 1975 has been NIL.
Mr. Manhar N Kakkad resigned as director of the Company w.e.f. 16th August,
2005. Mr. Dhiren B. Sheth, who was appointed by the Board of Directors on
1st August,2005 as a Director pursuant to Article 113 of the Articles of
Association of the Company. Mr. Dhiren B Sheth, is a Computer Professional
having wide experience of business and industry. He would be Independent
DIRECTOR'S RESPONSIBILITY STATEMENT
Pursuant to the provisions of Section 217(2AA) of the Companies Act, the
Directors hereby confirm :
(i) that in preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
(ii) that 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 and of the profit for the year
(iii) 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;
(iv) that the Directors have prepared the annual accounts on a going
APPOINTMENT OF AUDITORS
M/s. K.P. Joshi & Co. Chartered Accountants, the Auditors retire at the
conclusion of the ensuing Annual General Meeting and they being eligible,
offer themselves for re-appointment.
A separate report on Corporate Governance as per clause 49 of the Listing
Agreement is annexed hereto as part the Annual Report.
Your Directors wish to place on record their appreciation for whole hearted
cooperation received from all the employees, Bankers and Registrars,
Consultants and Auditors.
By Order of the Board,
Ahmedabad dated : 1st September, 2005 Chairman
Management Discussion and Analysis report
a) Cautionary Statement: The Management Discussion and Analysis Report may
contain certain statements that might be considered forward looking. These
statements are subject to certain risks and uncertainty. Actual result may
differ materially from those expressed in the Statement as important
factors could influence Company's operations such as delaying legal
process, Government policies, economic development, political factor and
such other factors beyond the control of the Company.
b) Opportunities and threats : The Board of Directors of the Company is
exploring new avenues and contemplating strategic tie ups for long term
value creation and to generate regular revenues in the Company. New
ventures are being explored by the Management of the Company to make foray
into the growing Capital Market based on investment objective of the
c) Risks and Concerns : As the new area of operations and functions will
have its own limitations and hurdles, the same may a risk factor in the
growth of the Company.
d) Outlook : The Board is making its efforts for doing better in the
current year it terms of business volume and profitability.
e) Internal Control system and their adequacy : The Company is having
adequate internal control system commensurate with the size of the Company
and nature of its business for purchase and sale of goods.
f) Human Recourses: The Company recognizes the importance and contribution
of its human resources for its growth and development and committed to the
development of its people.
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