To The Members of 20 MICRONS LIMITED
The Directors are pleased to present 25th Annual Report together with
the Audited Statement of Accounts for the year ended 31st March, 2012.
RESULTS OF OPERATIONS: [Rs. in Lacs]
Particulars 2011-12 2010-11
Total Revenue 26770.19 23741.12
Profit before Depreciation,
Interest 3525.91 2555.41
and Tax (PBDITA)
Interest for the year 1408.52 1061.61
Depreciation for the year 631.80 533.30
Profit before tax and Exceptional 1485.58 960.50
Exceptional items - 39.42
Profit/(loss) for the year 1485.58 921.08
Tax liability :-
Current Year''s Tax & FBT 363.25 245.40
Earlier Years Tax Adjustments/MAT 65.61
Credit 44.26 60.28
Deferred Tax Liability/(Asset)
Net Profit/(loss) for the year 1078.08 550.19
OVERVIEW OF ECONOMY
The world economy has been passing through stress. Financial turmoil in
Europe has affected other countries. This contagion has pushed up
borrowing costs and slowed growth in many parts of the world, and
capital flows to developing countries have fallen. As a result, and
despite a strengthening of activity in the United States and Japan,
world trade has slowed down. Under this scenario, the forecast for
global economic growth has been revised downward to about 2.5% in 2012.
Indian economy also slowed down in 2011-12 mainly due to weak
industrial growth. Inflation remained a major concern constraining RBI
to pursue tight monetary policy.
In this generally depressed scenario, the Company has achieved about
13% growth in Gross sales value which stood at Rs. 26770.19 Lacs for
the year. The management has taken measures as part of its continuous
improvements to strengthen operations and viability. It has widened and
improved the product range and price points in domestic as well as
international markets to enlarge the customer base.
During the year under report, your Company has achieved a Total Revenue
of Rs. 26770.19 Lacs (Up by 12.76% from Rs. 23741.12 Lacs of the
previous year). The operations have resulted in a net Profit before
Depreciation, Interest and Tax (PBDITA) of Rs. 3525.90 Lacs (Up by
37.97% from Rs. 2555.41 Lacs of the previous year).
Your Directors are pleased to recommend the payment of dividend @ 18%
i.e. Rs. 1.80 per Equity Share of the face value of Rs. 10/- each for
the year under review. The dividend, subject to approval of
shareholders, will be paid to the Shareholders whose name appears on
the Register of Members as on the Book Closure dates.
The Company has achieved a growth rate of 13% in Gross Sales during the
year. This growth rate is expected to continue along with higher
profitability and inspire the Company and its dedicated staff to focus
more attention on all its applications. The Current year and all-coming
years would walk on the foot prints of with highest earnings and the
continued support of effective sales force, improvement in production
facilities and implementation of innovative ideas.
During the year, the Company vigorously followed steps to improve plant
efficiency, customers'' satisfaction, cost reduction and exploitation of
new applications. The Company is still continuing to consolidate,
relocate and outsource manufacturing by constantly reviewing market
scenario. Product development is an ongoing process carried out in a
well equipped R & D Centre. This will enable the Company to review the
range of products offered to the Customers.
The Company is always looking on enhancing the interest of all the
stakeholders by better utilization of all its resources.
Your Company expects robust growth in existing Products and
contribution of new products by adopting the following strategies:
Expansion of Mineral Portfolio by adding new products;
Enhance value chain by launching new synthetic minerals products by
leveraging R&D strength;
Expand Geographical locations by acquiring Mines and infrastructure
facilities in Mineral rich countries in Middle East & South East Asia.
It is gratifying to note that State Bank of India, in consortium with
IDBI Bank Limited has enhanced the aggregate credit facilities from
Rs.6278 Lacs to Rs. 7258 Lacs and IDBI Bank Ltd. (IDBI) has also given
the working capital finance of Rs. 500 Lacs.
Your Directors convey their grateful thanks to SBI and IDBI for their
continued support and co-operation.
As on 31.03.2012, Fixed Deposits from Public and Shareholders stood at
the total of Rs. 1475.05 Lacs. 23 deposits totaling to Rs.10.81 Lacs
due for repayment on or before 31.03.2012 were not claimed by the
depositors on that day. Out of these, deposits of Rs. 2.90 Lacs have
since been repaid or renewed at the option of 8 depositors. No
instructions have been received so far for the balance of Rs. 7.91 Lacs
from 15 depositors. These deposits, if not claimed in future, shall be
deposited in the ''Investors Education and Protection Fund'' in due
course, as per the provisions of the Companies Act, 1956.
a) 20 Microns Nano Minerals Limited
Your Company owns 99.17 percent of 20 Microns Nano Minerals Limited.
The said Company is having a state of the art In-house Research &
Development facility which is registered with Department of Science &
Industrial Research (DSIR), Ministry of Science and Technology,
Government of India. During the year under review, the said Company
reported revenue from operations of Rs. 3035.04 Lacs and achieved Net
Profit of Rs. 30.15 Lacs.
b) 20 Microns Sdn. Bhd.
Your Company owns 99.99 percent of 20 Microns Sdn. Bhd. During the year
under review, the said Company reported Gross Revenue of RM 13.56 Lacs
and achieved Net profit of RM 1.90 Lacs.
c) 20 Microns FZE
Your Company owns 100 percent of 20 Microns FZE. During the period
ending 31/03/2012, the said Company reported Gross Revenue of AED 70.72
Lacs and achieved Net profit of AED 18.07 Lacs.
As per Section 212(1) of the Companies Act, 1956, the Company is
required to attach to its Accounts, the Directors'' Report, Balance
Sheet and Profit & Loss Account of each of its Subsidiaries. As the
Consolidated Accounts present a complete picture of the financial
results of the Company and its Subsidiaries and in view of General
Circular No. 2/2011 dated 08.02.2011 and No. 3/2011 dated 21.02.2011
issued by Ministry of Corporate Affairs, the Annual Report of the
Company does not contain the individual financial statements of its
Subsidiaries. However, the statement of your Company''s interest in the
Subsidiaries as at 31st March, 2012, prepared in accordance with the
provisions of Section 212 of the Companies Act, 1956 is attached to the
The Annual Accounts of the Subsidiary Companies along with the related
detailed information are available for inspection by the shareholders
of the Company and of the Subsidiary Companies at the Company''s
Registered Office and at the registered office of the concerned
Subsidiary and copies of the same shall be provided to any shareholder
CONSOLIDATED FINANCIAL STATEMENTS
The Audited Financial Statements, based on the same received from the
Subsidiary Companies, as approved by its Board of Directors, have been
prepared in accordance with AS - 21 on Consolidated Financial Statement
read with AS - 23 on Accounting for Investments in Associates.
Pursuant to the requirements of the Listing Agreements with Stock
Exchanges, your Directors are pleased to annex the following:
1. Management Discussion and Analysis Report
2. A report on Corporate Governance along with Auditors'' Certificate
relating to compliance of conditions thereof.
3. CEO Certificate regarding compliance with the Code of Conduct.
These annexure forms part of this report.
PARTICULARS OF EMPLOYEES
In terms of the provisions of Section 217(2A) of the Companies Act,
1956 read with The Companies [Particulars of Employees] Rules, 1975, as
amended, the names and other particulars of the employees are required
to be set out in the Annexure to the Report of the Board of Directors.
We have to state that since there are no employees falling within the
purview of the said requirements, the same has not been annexed
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE EARNINGS
AND OUT GO.
In terms of the provisions of Section 217(1)(e) of the Companies Act,
1956 read with The Companies [Disclosure of Particulars in the Report
of Board of Directors] Rules, 1988, as amended, the particulars of
Energy Conservation, Technology Absorption & Foreign Exchange Earnings
and Out go are given in the Annexure - A to this Report.
Industrial relations remain cordial and peaceful at all levels of the
Company throughout the year.
EMPLOYEES STOCK OPTION SCHEME [ESOS]
Details of the option granted, accepted and lapsed under Employees
Stock Option Scheme - 2007 of the Company, as also the disclosures in
compliance with the clause 12 of Securities and Exchange Board of India
(Employees Stock Option Scheme & Employees Stock Purchase Scheme)
Guidelines, 1999 are set out in the Annexure - B to this Report. The
Auditors'' Certificate relating thereto have been set out in the said
With effect from 29.04.2011, the Nomination of Mr. Munish Mohan had
been withdrawn by IDBI Bank Limited and in his stead and place, Mr.
Naresh Makhija was Nominated as the IDBI Nominee Director on the Board
of the Company.
Moreover, with effect from 22.10.2011, the Nomination of Mr. Mihir
Joshi had been withdrawn by GVFL Limited and ceased to be a GVFL
Nominee Director on the Board of the Company. Further, Mr. Vithaldas D.
talati had resigned and ceased to be a Director on the Board of the
Company with effect from 22.10.2011.
The Board appreciated and took on records the assistance and guidance
received by the Company during the tenure of the respective
Directorships of Mr. Munish Mohan, Mr. Mihir Joshi and Mr. Vithaldas
Mr. Atul H. Patel and Mr. Pravinchandra M. Shah, retire by rotation and
being eligible, offer themselves for reappointment.
Your Directors make following statements in terms of Section 217(2AA)
of the Companies Act, 1956:
1. The applicable accounting standards have been followed in the
preparation of the Annual Accounts along with proper explanations
relating to material departures;
2. Accounting policies are selected and applied consistently and
judgments and estimates are made which are reasonable and prudent so as
to give a true and fair view of the state of the affairs as at the end
of financial year and of the profit of the Company for the year under
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 for preventing and detecting fraud and other
4. The Directors have prepared the accounts on a going concern
M/s. Manubhai & Co., Statutory Auditors of the Company, hold office
until the conclusion of the ensuing Annual General Meeting and are
eligible for reappointment. The Company has received a letter from
Statutory Auditors to the effect that, in case their appointment is
made, it would be within the specified limit under Section 224(1B) of
the Companies Act, 1956.
Your Directors would like to express their grateful appreciation for
assistance & co-operation received from the Government Authorities;
GVFL; Banks and Financial Institutions; Customers; Vendors; Investors;
Depositors and all others.
Your Directors also wish to place on record deep sense of their
appreciation for the valuable and committed services of the Executives,
Staff & Workers of the Company.
For and on behalf of the Board of Directors
Place: Waghodia, Vadodara Chandresh S. Parikh
Date: 28.05.2012 Chairman and Managing Director