Aries Agro
BSE: 532935 | NSE: ARIES | ISIN: INE298I01015 | Miscellaneous
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
- Raw Materials
| Directors Report | Year End : Mar '08 |
The Directors have pleasure in presenting their 38th Annual Report on
the operations of the Company together with the Audited Statements of
Accounts for the Financial Year ended 31st March, 2008. This is the
maiden report after the successful Public Issue of the Company.
FINANCIAL RESULTS
(Rs. In Lakhs)
PARTICULARS AS AT 31.03.2008 AS AT 31.03.2007
Turnover 10,337.93 7,405.34
Profit Before Tax Interest 1,939.91 1,693.63
& Depreciation
Less:Interest 330.84 247.48
Depreciation 68.84 399.68 48.47 295.95
Profit Before Tax 1,540.23 1,397.68
Provision for Taxation 496.50 476.60
Deferred Tax (110.18) 386.32 51.66 528.26
Profit After Tax 1,153.91 869.42
Balance Brought Forward 1,645.00 878.90
Prior Period Expense 37.50 16.00
Exceptional Items 0.69 87.32
Amount available for 2,760.72 1,645.00
appropriation
General Reserve 150.00 NIL
Proposed Dividend 156.05 NIL
Tax on Proposed Dividend 26.52 NIL
Surplus Carried Forward to 2,428.15 1,645.00
Balance Sheeet
OPERATIONS
During the period year under review, the Company has earned total
income of Rs. 1,939.91 Lakhs. As at March’08, the Gross Fixed Asset is
Rs. 3,174.24 Lakhs. The turn over for the year was 10,337.93 Lakhs as
against Rs. 7,405.34 Lakhs in the previous year reflecting a growth of
40%. Profit after tax for the year was Rs. 1,153.91 Lakhs registering
an increase of 33%.
The Company is a major manufacturer and supplier of micronutrients/
secondary nutrient fertilizers and also water soluble NPK fertilizers.
DIVIDEND AND RESERVES
The Company has paid interim Dividend at Rs. 1.20 per Share (12 %)
aggregating to Rs. 1,56,05,206/80 plus dividend distribution tax of Rs.
26,52,105/- as per the resolution passed in the meeting of Board of
Directors held on 28th May, 2008. As there is no significant change in
profits of the Company for the year ended on 31st March, 2008 after
payment of Interim Dividend, it is proposed not to recommend to the
members any further dividend for the year ended on 31st March, 2008 and
confirm the Interim Dividend as Final Dividend.
FUTURE PROSPECTS:
The monsoon estimates made by Meteorological Department for 2008 are
extremely positive with 99% long term average. This would mean a good
kharif crop and therefore a positive outlook for the current financial
year in terms of revenue. The Company is also introducing range of
speciality plant nutrition concepts and will be launching 7 new brands
during the current financial year adding to the product range being
marketed through the wide distribution network of the Company. The
current line of products are expected to grow well during the current
season.
The Company has also invested in Golden Harvest Middle East FZC a
manufacturing facility for chelated micronutrients and is expected to
commence commercial production by July’08. This will provide the
Company with a cost advantage and will lead to savings in cost of
production. The Company has inaugurated its largest and most automated
manufacturing facility at Hyderabad on 24th March, 2008. The capacity
of this Hyderabad factory exceeds the total capacity of all the
Company’s Units as on 31.03.2007. This will undoubtedly strengthen and
enhance our production capabilities and service our largest markets.
The entire capacity of this unit will be available during the whole of
2008-09. The other 2 factories in Ahmedabad and Lucknow is expected to
commence commercial production as per schedule.
RESEARCH AND DEVELOPMENT:
The Company continues to invest on Research and Development at 3
different levels:
1) There is a continuous focus on university research on speciality
plant nutrition which continues across India.
2) Our team of extension officers conducts continuous field
demonstrations and extension work including large scale soil sampling,
which provides constant updates on deficiency levels across all states
in India. 3) The Company’s R&D at Bombay is ISO 9001 certified and
works on new product development and continuous quality checks. The new
manufacturing unit at Hyderabad has been equipped with a state of art
laboratory to keep pace with the Company’s expansion in that region.
INITIAL PUBLIC OFFERING (IPO)
During the period under review, the Company entered the capital market
and offered 45,00,000 Equity Shares of Rs. 10/- each at a premium of
Rs. 120/- through book building process on 11th January, 2008 for
subscription to the public. The Company received overwhelming response
from the investors and net issue to Indian public was oversubscribed to
the extent of about 7.62 times. Allotments of Shares have been made
and the Shares of the Company are now listed and traded at Bombay Stock
Exchange Limited and National Stock Exchange of India Limited. Your
Directors take this opportunity to thank the investors for their
confidence in the Company.
USE OF IPO PROCEEDS
The commitments made on the utilization of the IPO funds have been
adhered to during the period following the IPO. Till the close of June,
2008, the Company has utilized the IPO funds for the purposes for which
it was raised, namely, in setting up a manufacturing facility at
Pashamylaram, Patancheru, Dist. Medak, Andhra Pradesh, is the largest
and state-of-the-art Unit of the Company for secondary and
micronutrients involving a total out lay of Rs. 245 lakhs (excluding
land and buildings), in repaying the funds borrowed for the general
corporate purpose. The Company has also invested in setting up
Manufacturing facility to Manufacture chelated Micronutrients at the
Sharjah Airport International Free Zone (SAIF Zone) to the tune of Rs.
654.60 Lakhs. The Company has expended monies for the projects for
which funds were raised through the IPO and it is expected to
implement/commission all the projects within the committed time frame.
DEPOSITS
The Company has not accepted any deposits from the public within the
meaning of Section 58A of the Companies Act, 1956.
SUBSIDIARIES
The Company has only two wholly owned subsidiaries, Aries Agro Care
Private Limited and Aries Agro Equipments Private Limited having NIL
aggregate assets as at 31st March, 2008 and gross income of Rs. NIL and
Rs. NIL respectively, since the activity is yet to commence.
In the Current year Company has subscribed for 75% stake in Golden
Harvest Middle East, a Company incorporated in UAE. As required under
Section 212 of The Companies Act, 1956, annexed hereto are the Audited
Statement of accounts, the Reports of the Board of Directors and
Auditors’ Reports for the year ended 31st March, 2008 of Aries Agro
Care Private Limited, Aries Agro Equipments Private Limited and Golden
Harvest Middle East FZC.
Golden Harvest Middle East FZC is setting up a project for manufacture
of speciality secondary plant nutrients in Fujairah Free Trade Zone,
U.A.E. Accordingly, for expansion /operations, your Company has
obtained term loan from ICICI Bank Ltd., to fund investment in
subsidiary.
The Company has just floated another subsidiary which has been
incorporated on 20.06.2008 in the name and style of Aries Agro Produce
Private Limited wherein the Company has subscribed to the extent of 75%
of its Equity. The purpose of incorporating the said Company is mainly
for corporate farming.
A Statement of Subsidiary Companies as prescribed under Section 212 of
the Companies Act, 1956, is annexed and is forming part of the Annual
Report. Apart from the above statement a list of Subsidiary Companies
is given in Note No. 9 A of the Notes to Accounts forming part of the
Annual Report.
DIRECTORS
In accordance with the Companies Act, 1956 and the Articles of
Association of the Company, Dr. Rahul Mirchandani and Dr. D. S. Jadhav
retire by rotation at the ensuing Annual General Meeting and being
eligible, offer themselves for re-appointment. Accordingly their re-
appointment forms part of the notice of ensuing AGM.
AUDITORS’ REMARKS
As regards compliance with the Accounting Standard 15 in respect of
Retirement benefits, the Company has already opted for the gratuity
fund administered by Life Insurance Corporation of India, Mumbai for
the employees of the Company. The Company will provide for Gratuity
liability for earlier period as and when paid, since the Company has
been granted time upto 30.11.2010.
APPOINTMENT OF AUDITORS
M/s. Kirti D. Shah & Associates, the Auditors of the Company retires at
the ensuing Annual General Meeting and being eligible, offers
themselves for re-appointment.
DIRECTORS’ RESPONSIBILITY STATEMENTS
Pursuant to the requirements of Section 217 (2AA) of the Companies Act,
1956 with respect to the Directors’ responsibility statement, it is
hereby confirmed that:
1. In preparation of the Annual Accounts, applicable accounting
standards have been followed.
2. The accounting policies are consistently applied and reasonable,
prudent judgment and estimates are made 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 of the Company for that period.
3. The Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
4. The Directors had prepared the Annual Accounts on a going concern
basis.
PERSONNEL
Your Directors wish to place on record their appreciation of the
contribution made by the employees at all levels for the successful
operations of the Company during the year.
Information in accordance with the provisions of Section 217(2A) of the
Companies Act, 1956 (“Act”) read with the Companies (Particulars of
Employees) Rules, 1975, as amended, are required to be set out in the
Annexure to this Report. However, as per the provisions of Section
219(1)(b)(iv) of the Act, the Report and Accounts are being sent to all
the members of the Company excluding the statement of particulars of
employees’ under Section 217(2A) of the Act. Any member interested in
obtaining a copy of this statement may write to the Compliance Officer
at the Registered Office.
CORPORATE GOVERNANCE
The Company has complied with the various requirements under the
Corporate Governance reporting system. A detailed compliance report on
Corporate Governance is annexed to this report. The Auditors’
certificate on compliance with the conditions of corporate governance
under clause 49 of the listing agreement is also annexed to this
report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING & OUTGO
Particulars in respect of Conservation of Energy, Technology Absorption
and Foreign Exchange Earnings and Outgo, as required to be disclosed
under Section 217(1) (e) of the Companies Act, 1956 read with the
Companies {Disclosure of Particulars in the Report of the Board of
Directors} Rules, 1988 and forming a part of the Directors Report are
as under:
Power and Fuel Consumption
Particulars Current Year Previous Year
2007-2008 2006-2007
(a) Purchased:
(i) Unit (KWH) 5,64,555 5,60,800
(ii) Total Amount (Rs.) 40,44,753 30,69,004
(iii) Rate/Unit (Rs.) 7.16 5.47
(b) Own Generation:
(i) Coal Not Applicable Not Applicable
(ii) Furnace Oil - Kl 5,528 2,849
(iii) Internal
Generation - Units 18,463 9,521
Technology Absorption
The Management has focused on productivity and Total Quality Management
[TQM] in order to optimize manufacturing costs. This has helped in
achieving optimum manufacturing costs, improved quality of products and
consequently, enhanced customer satisfaction. The Company uses
indigenous technology.
Foreign Exchange Earnings and Outgo
The particulars regarding Foreign Exchange Earnings and Expenditure
appear as item number 12 in the Notes to the Accounts.
ACKNOWLEDGEMENT
Your Directors gratefully acknowledge the support and co- operation
extended by Banks, Local authorities, Customers and Shareholders of the
Company and hopes to achieve greater and greater heights in the years
to come.
By Order of the Board
Sd/-
Place : Mumbai Dr. T. B. Mirchandani
Date : 30th June, 2008 Chairman & Managing Director
|
|
![]() | |
| Source : Religare Technova | |
![]() | |




Online


