TO THE MEMBERS COSMO FERRITES LTD.
The Directors have pleasure in presenting the Annual Report on the
business and operations of the company along with
Audited Balance Sheet and Profit & Loss A/c for the year ended 3 Is1
[Rs. in Lacs)
FINANCIAL RESULT 2011-12 2010-11
Sales 4497 5127
Profit /(Loss)before depreciation
& tax 378 816
Depreciation 338 292
Pro fit/( Loss) before Tax 40 524
Provision for current Tax 4 144
Provision for earlier Year - -
Profit/(Loss) after current Tax 36 379
Provision for deferred tax - (39)
Profit/(Loss) after deferred lax 35 418
Add:-Mat Credit Entitlement - -
Add :Balance brought forward 585 182
Less:- Transfer to Preference
Share Capital Redemption Reserve
Add:- Transfer from General Reserve - -
Profit/(Loss) available for appropriation 624 600
Provision for arrears off Dividend on
Cumulative Redeemable Preference
Shares 136 13
Proposed Dividend on cumulative
redeemable Preference Shares
Corporate Tax on Dividend - 2
Balance Carried To Balance Sheet 488 585
In view of the profit after appropriation being low during this year,
the Directors are unable to recommend any dividend on the equity shares
for the year ended March 31, 2012.
Your company shares have been notified for compulsory trading in demat
form by SEBI w.e.f. September 25, 2000. Members have the option of
holding their shares in demat form through any of the depositories by
opening account with the authorized depository participants.
Your Company has not accepted any deposits within the meaning of
Section 58 A of Companies Act, 1956.
REVIEW OF OPERATIONS
- Sales Revenue Rs 4497 lacs for the year ending 31s1 March 2012 as
compared to Rs. 5127 Lacs previous year.
- Net Profit after lax for the year is Rs. 39 Lacs as compared to
Rs.4 18 lacs in the previous year.
- This year was challenging on various fronts, viz upward pressure on
key raw materials prices along with increased competition in global
ferrites market, down fall in international market.
FUTURE OUTLOOKS EXPANSION
Various cost cutting measures are being taken in a structured manner.
Besides, different market segments are being explored to increase the
order book and thereby better capacity utilization. It is expected that
performance in current year will be much better. Company had undertaken
an expansion project to increase the capacity by 50%. Project has been
commissioned on 28 April 2011.
Mr. Rakesh Nangia, Director of the Company is liable to retire by
rotation and being eligible offer himself for reappointment at the
ensuing Annual General Meeting.
There are no inter-se relationships of all or any of the directors in
terms of disclosure requirements of the listing agreement with the
stock exchange, except that Mr. Ashok Jaipuria and Mr. Ambrish Jaipur
ia are relative of each other.
Following information as per the requirements of the Companies Act,
1956 is given in separate statements annexed hereto, which form part of
a) Particulars of employees pursuant to section 217(2A) of the
Companies Act, 1956
b) Energy conservation, technology absorption and foreign exchange
inflow/outgo pursuant to section 217(1 )(e) of the Companies Act, 1
DIRECTORS'' RESPONSIBILITY STATEMENT
In accordance with the provisions of section 21 7[2AA) of the Companies
Act, 1956, your directors state that:
(i) In the preparation of the annual accounts, applicable accounting
standards have been followed.
(ii) Accounting policies selected were applied consistently.
Reasonable and prudent judgments and estimates are made so as to g ive
a true and fair view of the state of affairs of the Company as on 3
Is1 March, 2012 and of the profit of the Company for the year ended on
(iii) Proper and sufficient care has been taken 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 irregularities.
(iv) The annual accounts of the company have been prepared on a going
A Management Discussion and Analysis Report is annexed and form part of
A separate report on Corporate Governance along with Auditors
certificate on compliance of conditions of Corporate Governance as
stipulated in clause49 of the listing agreement with the stock exchange
form part on this report.
RE-APPOINTMENT OF AUDITORS
M/s. B.K. Shroff & Company, Chartered Accountants, Statutory Auditors
of the Company will retire at the ensuing AGM and being eligible offers
themselves for reappointment. The Company has taken a certificate from
the auditors to the effect that their re-appointment if made, would be
in accordance with the provisions of section 224[1B) of the Companies
The Board desires to place on record its appreciation of the support
and co-operation that your company received from suppliers, processors
distributors, dealers, bankers and all others associated with your
company. Your company regards them as partners in its journey of growth
The Board wishes to place on record its appreciation of the
contribution made by all employees in improving overall performance
during the year.
Your directors wish to place on record their appreciation of the
whole-hearted and continued support extended by the investors, bankers
and financial institutions.
For and on behalf of the Board
18th May, 2012