The Directors have pleasure in presenting Thirty Sixth Annual Report
together with the Audited Statement of Accounts of the Company for the
year ended 31st March, 2012.
The Performance of the Company for the financial year ended on 31
March, 2012 is summarized below:
(Rs. in Lacs)
Particulars 2011-12 2010-11
Sales and other Income 1,65,869.42 1,30,830.07
Gross Profit 2,175.53 2,123.60
Depreciation 564.09 495.77
Profit before tax 1,611.44 1,627.83
Provision for Taxation for the year (220.00) (410.00)
Provision for Deferred Taxation
for the year (59.29) (136.44)
Income tax for earlier years (net) (7.77) (72.19)
Profit after Taxation 1,324.38 1,009.20
Balance brought forward from
previous year 10,697.83 9,688.63
Amount Available for Appropriation 12,022.21 10,697.83
Transfer to General Reserve Proposed
Dividend on Equity Shares Tax on
Dividend Surplus carried to
Balance Sheet 12,022.21 10,697.83
Your Company is exploring business opportunities for implementing the
expansion plans of the existing businesses and few years back has
diversified in mining and mineral based new projects which requires
substantial capital investment, therefore it is necessary to conserve
the funds to meet these investment opportunities, which your Board
believes would enhance the shareholders wealth in the long term. Thus,
your Board has not recommended any dividend for the financial year
The overall performance of the Company showed remarkable improvement as
compared to the previous year. The Company achieved turnover & other
income of Rs. 1,65,869.42 Lacs with around 27% growth as compared to
previous year however due to increased cost of raw material and other
variable costs of Operating profit has increased only by 2.45% at Rs.
2,175.53 Lacs and Net profit increased handsomely by 31.23% at Rs.
1,324.38 Lacs during the year under review.
Management of the Company under the direction of your Board of
Directors is continued in achieving the targets of cutting down the
cost of operations and getting efficiency in this areaby using better &
BUSINESS EXPANSION & DIVERSIFICATION
On the front of newly diversified business of mining the year under
review has remained productive one wherein after getting final approval
of Ministry of Mines, Government of India for earlier recommended
mining concessions, your Company has aggressively applied for various
procedural formalities which includes prospecting work of allotted
area, application before Ministry of Environment & Forest, submission
of draft mining plan to Indian Bureau of Mines and various other field
work formalities, however start of functioning from allotted mines
needs to comply with various lengthy procedural formalities but
with our sincere and aggressive efforts towards these we expect to
complete all the formalities in a further period of one year from the
Further your Company is also very enthusiastic to set up mineral based
industry in Madhya Pradesh to process minerals to be explored from its
own mines. Land has been indentifiedattwo locations and project work
shall startinnear future.
Better profitability and turnover is expected from these activities in
Real Estate Business
The integrated township project named ''Active Acres'' at Kolkata
launched few years back by Mahakosh Property Developers a partnership
wherein your Company is a partner with major stake is continued to
acknowledge great response from all segments which can be seen in the
form of encouraging bookings even in the tight phase in the Real Estate
Sector, which is a good sign of your Company''s reputation and
sustainability which will result in good profits in the years to come.
Further the Company has also been allotted land by the Maharashtra
Industrial Development Corporation at Butibori Industrial Area in
Nagpur and also acquired land near to Kolkata Leather Complex, KITP,
Gangapur, West Bengal where also your Company is keen to set up an IT
project under oneofits sole proprietary concern M/s Ruchi Infosystems.
New Dairy Plant
A new Milk processing plant with capacity to produce 30 Tons Milk
Powder per day by processing 4 Lacs litres per day commissioned at
Dewas (MP) is running successfully. This plant has provided great
opportunities of exports available in Milk Powder business to your
Company after recently lifting of ban on skimmed milk powder by the
Govt. of India, resulting in good profits inthe yearstocome.
Your Company is also planningtosetup anew dairy plant at Etah for
better quality ofmilk powder to cater northern and north-east part of
the Country.This plant is expected to be operational by April 2013.
In addition tothis, your Companyis enthusiastically keepingawatch on
the southern and the eastern regionsofIndia for setting up few more
dairy plants tocover these regions whereweare sure that the
productsofthe Company shallbetaken hand tohand.
FOREIGN EXCHANGE EARNINGS
Your Company remains committed toenlarge foreign exchange earnings.
During the year under review, your Company''s earnings from
exportofAgri-commodities onFOB basis were Rs. 8,922.57 lacs.
Company is targeting other countries with additional dairy products and
agri-commodities on opportunity basis to increase its foreign earnings.
The Company has not accepted any deposits from the public during the
year under review.
All properties and insurable interestsofthe Company including Building
and Plant & Machinery have been adequately insured.
PARTICULARS OF EMPLOYEES
None of the employees of the Company was drawing remuneration in excess
of the limits prescribed under the provisions of section 217(2A) of the
Companies Act, 1956 read with the Companies (Particulars of Employees)
Rules, 1975 as amended till date.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Information as per section 217(1)(e) read with Companies (Disclosures
of Particulars in the report of Board of Directors) Rules, 1988 are
given intheAnnexure ''A'' forming part ofthis Report.
HUMAN RESOURCE & INDUSTRIAL RELATIONS
Industrial relations were harmonious throughout the year.The Board
wishesto placeonrecord their sincere appreciation tothe co- operation
extended byall the employees inmaintaining cordial relations.
Pursuant to clause 49 of the Listing Agreements with the Stock
Exchanges, a Management Discussion and Analysis Report, Corporate
Governance Report and Auditors'' certificate regarding compliance of
conditions of Corporate Governance are made a part of the Annual
DIRECTOR''S RESPONSIBILITY STATEMENT
The Company is in compliance with various accounting and financial
reporting requirements in respect of the financial statement for the
period under review. Pursuant to section 217(2AA) of the Companies Act,
1956, and in respect of the annual accounts for the period under
review, the Directors hereby confirm that:
a. In the preparation of the annual accounts, the applicable
accounting standards had been followed.
b. 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 at the end of the financial year and of the profit or loss
of the Company for that period;
c. Proper and sufficient care for 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 have been taken to the best of
their knowledge and ability.
d. The annual accounts have been prepared on a going concern basis.
Mr. Kailash Chandra Shahra and Mr. Kamal Kumar Gupta, Directors of the
Company retires by rotation in accordance with the provisions of the
Articles of Association of the Company and being eligible offer
themselves for reappointment.
Mr. Praveen Sethia has resigned from the Directorship of the Company on
19.04.2011. Mr. PD. Nagar has resigned from the Directorship of the
Company on 01.01.2012. The Board appreciates the valuable services
rendered by Mr. Praveen Sethia and Mr. P.D. Nagar during their
association with your Company.
The Members of the Company in the Annual General Meeting held on
30.09.2011 reappointed Mr. Manish Shahra as the Joint Managing Director
of the Company for a period of 5 years with effect from 1 July, 2011
and Mr. Ashok Trivedi as the Whole-time Director of the Company for
aperiod of 5 years with effect from 1 April, 2011.
Mr. Vijay Rathi was appointed as an Additional Director of the Company
w.e.f 02.04.2012 and who holds office upto the ensuing Annual General
Meeting. The Company has received a notice u/s 257 of the Companies
Act, 1956 together with the requisite deposit from a shareholder and
proposes to appoint him as a Director of the Company liable to retire
AUDITORS & AUDITORS REPORT
The Auditors M/s. Ashok Khasgiwala & Co., Chartered Accountants, retire
at the forthcoming Annual General Meeting and are eligible for
re-appointment. The notes referred to by the Auditors in their Report
are self explanatory and hence do not require any explanation.
The Directors wish to convey their appreciation to all of the employees
of the Company for their enormous personal efforts as well as their
collective contribution during the year. The Directors would also like
to thank the shareholders, customers, suppliers, bankers, financial
institutions and all other business associates for their continuous
support given to the Company and their confidence in the management.
For and on behalf of the
Board of Directors For and on behalf of the Board of Directors
(MANISH SHAHRA) (SURESH CHANDRA SHAHRA)
Jt. Managing Director Managing Director
Place : Indore
Dated : 3rd September, 2012