The Directors have pleasure in presenting the Thirty Seventh Annual
Report together with the Audited Statement of Accounts of the Company
for the year ended 31st March, 2013.
The Performance of the Company for the financial year ended on 31st
March, 2013 is summarized below:
Particulars 2012-13 2011-12
Sales and other Income 1,30,412.83 1,65,869.42
Gross Profit 1,880.18 2,175.53
Depreciation 571.83 564.09
Profit before tax 1,308.35 1,611.44
Provision for Taxation for the year (205.00) (220.00)
Provision for Deferred
Taxation for the year (36.92) (59.29)
Income tax for earlier years (net) (7.77)
Profit after Taxation 1,066.43 1,324.38
Balance brought forward from
previous year 12,022.21 10,697.83
Amount Available for Appropriation 13,088.64 12,022.21
Transfer to General Reserve
Proposed Dividend on Equity
Shares Tax on Dividend
Surplus carried to Balance Sheet 13,088.64 12,022.21
Your Company is exploring business opportunities for implementing the
expansion plans of the existing businesses of milk & food processing as
well as recently diversified mining and mineral based new projects;
therefore it is necessary to conserve the funds to meet these
investment opportunities, which your Board believes would enhance the
shareholders wealth in coming period. Thus, your Board has not
recommended any dividend for the financial year 2012-13.
During the year, Company achieved a turnover of Rs. 1,30,412 Lacs,
which is decreased by around 21% as compared to previous year.
Operating profit has decreased by around 13% and stood at Rs. 1,880
Lacs and net profit also decreased by around 19% and stood at Rs. 1,066
Lacs during the year under review. The same is due to lower turnover in
trading business to avoid unforeseen losses on account of high
volatility in commodity prices and high upward fluctuation in US Dollar
against Indian Rupee. However on the manufacturing front the turnover
increased by more than 16% and stood at Rs. 75,199 Lacs, but
manufacturing profit has gone down by 23% due to increased cost of raw
Management of the Company under the direction of your Board of Director
is continued in achieving the targets of cutting down in the cost of
operations and getting efficiency in this area by using better
BUSINESS EXPANSION & DIVERSIFICATION
During the year under review, your Company has increased its dairy
business turnover by about 16% as compared to previous year. Your
Company has started concentrating more on supplying hygienic quality
liquid milk in pouches and in line with the same in 2012 it has
successfully launched liquid milk in tetra pack with longer shelf life.
Similarly to cater Central India with hygienic packed milk, Company has
started its operation in Raipur, (Chhattisgarh). To cover more part of
the urban area of North India, it has proposed to set up a new dairy
plant at Etah (UP) for supply of pouch milk and better quality milk
power. The said plant is expected to come in operation by April, 2014.
In addition to this, your Company is enthusiastically keeping a watch
on the southern and the eastern regions of India for setting up few
more dairy plants to cover these regions where we are sure that the
products of the Company shall be taken hand to hand.
On the Front of recently diversified business of mining, the year under
review again remained productive as few of mines allotted to your
Company are marching ahead towards getting necessary
approvals/permissions coming closure to start commercial production in
the short span of time.
Further, sincere efforts of your Company are continue to set up mineral
based Industry in Madhya Pradesh to use explored minerals from its own
mines in future.
Better profitability and turnover is expected from these activities in
Real Estate Business
The integrated township project ''Active Acres'' at Kolkata launched few
years back by M/s. Mahakosh Property Developers, a partnership firm
wherein your Company is partner with major stake, is continuously
getting good response from all segments of public even in the phase of
recession period in the Real Estate Sector, where, out of completed 4
towers and 1 tower under construction, booking of about 75% of the
residential units has been done and more than 100 families have started
living in township, which is a good sign of your Company''s reputation
and sustainability which will result in good profits in the years to
FOREIGN EXCHANGE EARNINGS
Your Company remains committed to enlarge foreign exchange earnings.
During the year under review, your Company''s earnings from export on
FOB basis were Rs. 8,927.26 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 interests of the 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 in the Annexure ''A'' forming part of this Report.
HUMAN RESOURCE & INDUSTRIAL RELATIONS
Industrial relations were harmonious throughout the year. The Board
wishes to place on record their sincere appreciation to the co-
operation extended by all the employees in maintaining cordial
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 Director hereby confirms 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. Vijay Rathi, Director of the Company retires by rotation in
accordance with the provisions of the Articles of Association of the
Company and being eligible offer himself for reappointment.
The Board of Directors at their meeting held on 06th June, 2013
reappointed Mr. Suresh Chandra Shahra as Managing Director of the
Company for a period of 5 years with effect from 1st August, 2013. The
Board of Directors recommends his re-appointment.
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.
Pursuant to the circular dated 24th January, 2012 of the Ministry of
Corporate Affairs, your Company has appointed M/s K.G. Goyal & Co.,
Cost Accountants, (Firm Registration no. 00017) as Cost Auditor for the
year 2012-13, with the consent of the Central Government, for the audit
of cost accounts maintained by the Company.
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: 31st August, 2013