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Valley Abrasives Ltd.

BSE: 513715 Sector: Engineering
NSE: N.A. ISIN Code: INE904E01017
BSE 05:30 | 01 Jan Valley Abrasives Ltd
NSE 05:30 | 01 Jan Valley Abrasives Ltd

Valley Abrasives Ltd. (VALLEYABRASIVES) - Director Report

Company director report

VALLEY ABRASIVES LIMITED ANNUAL REPORT 2005-2006 DIRECTOR'S REPORT TO THE MEMBERS Your Directors present the 15th Annual Report of the Company together with the Audited Account for the year ended 31st March, 2006. FINANCIAL RESULTS: The Company has incurred total loss of Rs.78.68 Lacs after providing depreciation & interest. The Company is engaged in the production of refractory bricks as small scale with their existing D.D. Kiln during the year. Whereas the operation of the main Plant remains totally suspended. The Company had submitted its revival proposal to I.D.B.I, as operating Agency appointed by B.I.F.R. Once the revival scheme is sanctioned the Company would be in a position to achieve the targets being laid for the revival. Actual for the Actual for the Year 2005-06 Year 2004-05 (Rs. in Lacs) (Rs. in Lacs) Sales & Other Receipts 6.40 3172.29 Profits before interest and Depreciation (24.62) 3161.72 Less: Interest (11.11) 1.67 Profit before Depreciation (35.73) 3160.05 Less: Depreciation (42.90) 440.15 Profit After Interest & Depreciation (78.63) 2719.90 Less: Provision for Fringe benefit Tax 0.04 0.00 Less: Provision for Deferred Tax Liability (377.05) 377.05 Profit/Loss carried to Balance Sheet (298.37) 2342.85 Projected for the Actual for the Year 2005-06 Year 2005-06 PRODUCTION (in M/T) (in M/T) (%) Particulars B.P. Set (Refractory Bricks) - 49,380 Nos. 262.350 MT. PROJECT PERFORMANCE: There was no production of main products in the year under review. FUTURE PROSPECTS: Due to gap in demand and supply, we foresee a good market for the Company's main products if the revival scheme is approved and the Company can start afresh. FIXED DEPOSITS: Your Company has not accepted any deposit within the meaning of Section 58A of the Companies Act, 1956 and Rule made there under. PARTICULARS OF EMPLOYEES: The information required to be submitted under Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1988 with respect to above matter are not applicable as there is no such remuneration to report with. DIRECTORS: Shri Sunil Kumar Mukherjee retires by rotation at the ensuing Annual General Meeting and being eligible, offers him self for re-appointment. CORPORATE GOVERNANCE: According to the schedule of implementation of the recommendation of the Securities and Exchange Board of India and the Listing Agreements of the Stock Exchanges, the Company implemented Corporate Governance during the year under report. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO: 1. Conservation of Energy and Technology absorption: As per Form A and B annexed hereto. 2. Foreign Exchange Earnings: Nil 3. Foreign Exchange Outgo : Nil DIRECTORS' RESPONSIBILITY STATEMENT: Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956 the Directors confirm: i) That in preparation of the Accounts for the Financial Year ended 31st March, 2006 the applicable accounting standards have been followed along with proper explanation relating to material departures; ii) That the Directors have selected such accounting policies and applied them consistently and made judgment and estimates that were 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 or Loss of the Company for the Year under review; 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; and iv) That the Directors have prepared the Accounts for the Financial Year ended 31st March, 2006 on a 'going concern basis'. AUDITORS: M/s. Agrawal Rungta & Co., Chartered Accountants, retired at the ensuing Annual General Meeting and are eligible for re-appointment. They have given their Consent for such appointment. AUDITORS' REPORT: The notes to the accounts referred to in the Auditors' Report are self- explanatory and therefore do not call for any further comment. PERSONAL: Relation with employees continued to remain cordial throughout the year. Your Directors wish to place on record their appreciation for dedicated and sincere services rendered by executives and staff at all levels. ACKNOWLEDGEMENT: Your Directors place on record their appreciation of assistance and support extended by the I.D.B.I. Uco Bank. Auditors, Shareholders, Suppliers. Customers and staff to the Company. Registered Office: By Order of the Board 40-B, Vivekananda Road, for VALLEY ABRASIVES LIMITED Kolkata - 700 007. PURUSHOTTAM LAL AGARWAL Date: 21st August, 2006. (Director) ANNEXURE TO THE DIRECTORS' REPORT FORM - A Disclosure of particulars with respect to conservation of energy: UNIT 31.03.2006 31.03.2005 A. POWER & FUEL CONSUMPTION: 1. Electricity: Purchased KWH - - Total Amount Rs./Lacs - - Rate/Unit Rs./KWH - - (Including all charges) Own Generation KWH - - (Through Generator) Cost of Diesel per Unit Rs./KWH - - 2. H.S.D.: Quantity Ltr. - - Total Cost Rs./Lacs - - Average Rate Rs./Ltr. - - 3. COAL: Quantity M.T. 51.050 255.101 Total Cost Rs./Lacs 1.12 1.39 Average Rate Rs./Ltr. 2200/- 543/- B. CONSUMPTION PER UNIT OF PRODUCTION: M.T. of B.P. Set UNIT 31.03.2006 31.03.2005 1. Electricity KWH - - 2. H.S.D. Ltr. - - 3. Coal M.T. 0.125 0.002 FORM - B DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY: A. RESEARCH & DEVELOPMENT (R&D): 1. Specific area in which R&D carried out by the Company. There is no R&D activity undertaken by the Company due to shutdown of the plant. 2. Future Plan of Action: To continue R & D works after revival of the Company. 3. Expenditure on R&D 31.03.06 31.03.05 a) Capital (Rs.) - - b) Recurring (Rs.) - - c) Total (Rs.) - - d) As a percentage of turn over - - B. TECHNOLOGY ABSORPTION, ADOPTION AND INNOVATION: 1. Efforts made: The plant has been made ready for performance, sufficient working capital to meet Current Liabilities is required to gear it up to achieve better utilization of its production capacity. 2. Benefits: Saving of Foreign Exchange. 3. Technology imported - Nil. C. FOREIGN EXCHANGE EARNED AND OUTGO: The Company has not used foreign exchange during the year.