To The Members of AMFORGE INDUSTRIES LIMITED
The Directors hereby present the 40th Annual Report and audited
statement of accounts for the year ended 31st March, 2012.
(Rs. in 000''s)
Total Income 43961.08 22836.36
Earning before Interest, Depreciation,
Exceptional items and Tax. (29724.07) (77769.00)
Less: Depreciation 3855.80 8862.53
Profit/(Loss) before Interest,
Exceptional items and tax (33579.87) (86631.53)
Less: Interest and Finance cost 7267.79 8862.53
Profit/(Loss) before Exceptional items
and tax (40847.66) (95595.95)
Less: Exceptional items 55596.56 19179.76
Profit/(Loss) before tax 14748.90 (76416.19)
Provision for Current Tax 3030.27 36.13
Provision for Deferred Tax 19558.00 (22446.00)
Profit/(Loss) after Tax (7839.37) (54006.32)
Balance of Profit/(Loss) brought
forward from previous year (416089.04) (362082.72)
(Loss) carried to Balance Sheet (423928.41) (416089.04)
During the year under review, your Company registered a total income of
Rs. 43961.08 thousands as against Rs. 22836.36 thousands in the
previous year and Earning Profit/(Loss) before Interest, Depreciation,
Exceptional items and tax (Rs. 29724.07) thousands as against (Rs.
77769) thousands in the previous year. The Profit before tax for the
year is Rs. 14748.90 thousands as against Loss of (Rs. 76416.19)
thousands in the previous year.
No dividend is recommended due to accumulated losses for the year under
The Company has not accepted any deposits from the public during the
Shri. Rakesh Khanna, who retires by rotation and being eligible, offers
himself for re-appointment. Shri. Bhushanlal Gupta, who retires by
rotation and being eligible, offers himself for re-appointment.
Shri. Puneet Makar has been reappointed as Managing Director of the
Company for a period of three (3) years w.e.f. 2nd February, 2012 by
the Board of Directors in their meeting held on 1st February, 2012 on
the terms and conditions including remuneration, as approved by the
Remuneration Committee of the Board of Directors, subject to approval
of the shareholders of the Company.
DIRECTORS'' RESPONSIBILITY STATEMENT:
As required under Section 217(2AA) of the Companies Act, 1956, your
Directors confirm that:-
i. In the preparation of the annual accounts, the applicable
accounting standards have been followed.
ii. Appropriate accounting policies have been selected and applied
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 as on 31st March, 2012 and of the loss of the Company for
the year ended on that date.
iii. Proper and sufficient care has been taken for maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the company and
iv. The annual accounts have been prepared on a going concern basis.
M/s. Bansal & Associates, Chartered Accountants, retire at the ensuing
Annual General Meeting and being eligible offer themselves for
reappointment in accordance with the provisions of the Companies Act,
The Directors give the following comments on Para - 4 of the Auditor''s
The production at Chinchwad plant was suspended, from December, 2008
due to the major recession in the automobile industry. In May, 2009 a
lock out had to be declared at the plant, because of labour unrest.
Since there was no manufacturing activity at the plant and in order to
settle the workmen''s dues, which were overburdening the Company''s
financials, the assets of the Chinchwad plant were disposed of.
As far as Accumulated losses, these were mainly due to the absence of
revenue from the manufacturing operations, and the expenses incurred on
settlement of the workmen''s and other statutory dues. With regard to
the Debt Assignment, the Board of Directors after due consideration and
based on the commercial viability, decided to assign the debt.
Subsequent to the disposal of the assets at its plant, the Company
continues its trading activities, and is also exploring other business
avenues, in terms of the Memorandum of Association of the Company.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION FOREIGN EXCHANGE EARNINGS
The Company has ceased to carry on any manufacturing activity for last
three years. As such there is nothing further to report on Conservation
of Energy and Technology Absorption.
Foreign Exchange Earning : Nil
Foreign Exchange Outgo : Nil
MANAGEMENT DISCUSSION AND ANALYSES:
Pursuant to Clause-49 of the Listing Agreement with the Bombay Stock
Exchange Limited, the Management Discussion and Analysis (MDA) is
required to be annexed to this report. There is nothing to report as
the company has disposed of its assets at its only plant at Chinchwad
during the year subsequent to closure of manufacturing activities.
However, the company continued trading activities.
Also the company is exploring other business activities in terms of the
Memorandum of Association of the Company.
The company has no employees in respect of whom information under
Sub-section (2A) of Section 217 of the Companies Act, 1956 read with
the Companies (Particulars of Employees) Rules, 1975 and amended as on
date is required to be furnished.
Pursuant to Clause-49 of the Listing Agreement, a report on Corporate
Governance is annexed to this report, as Annexure–1.
Pursuant to Clause 49 of the Listing Agreement and Section 383A of the
Companies Act, 1956, certificates issued by Practicing Company
Secretary are annexed to this report, as Annexure-2 and 3 respectively.
Your Directors wish to place on record their sincere thanks to all
members and employees for their continued support and co-operation.
For and on behalf of the Board of Directors
Chairman & Managing Director
Date : 29-05-2012