The directors have pleasure in presenting Twenty Seventh Annual Report
on the business and operations of the Company together with the Audited
Statement of Accounts for the year ended 31st March, 2012.
The operational performance of the Company for the period under review
is as below: -
Year ended Year ended
(Rs. in lacs) (Rs. in lacs)
Gross Sales and
other Income 7279.44 6163.87
Profit before Interest
& Depreciation 467.12 325.56
Financial Charges 24.58 22.70
Depreciation 87.47 69.21
Net Profit for the year 355.07 233.65
Provision for Income tax
(Current) 115.86 76.20
Balance carried from
previous year 677.70 611.59
Profit available for
appropriation 916.91 768.16
Provision for dividend &
Dividend distribution tax 43.00 40.46
General Reserve 50.00 50.00
Balance carried to
Balance sheet 823.91 677.70
The sales performance of the Company has shown improvement over the
last year. The cost effective measures have also contributed to the
improved performance in terms of profitability, inspite of significant
increase in the cost of raw materials.
Your directors are pleased to recommend a dividend of 5 % (Re. 0.50 per
share) absorbing a sum of Rs 37.00 Lacs. The dividend will be paid to
all shareholders whose names appear in the Register of Members as on
the book closure date.
Your company has chalked out a plan to grow in the export market. This
segment of the business is expected to grow at a faster rate, in the
Company is in the process of expanding its capacity and is also
entering into allied business. The Company had already taken steps for
the purpose of expansion and diversification and for this funds have
been arranged through internal sources.
Mr. J.C. Kapur and Mr. Nirmal Lunia, Directors are liable to retire by
rotation at the ensuing Annual General Meeting and being eligible offer
themselves for the re- appointment. The Board of Directors recommends
Report on Corporate Governance is enclosed and is forming part of the
Directors'' Report. A certificate from the Statutory Auditors of the
Company regarding Compliance of the conditions of the Corporate
Governance is attached to this report.
Company has not accepted any deposits within the meaning of Section 58A
and 58AA of the Companies Act, 1956 and the rules made there under.
DIRECTOR''S RESPONSIBILITY STATEMENT
In terms of provisions of Section 217(2AA) of the Companies Act, 1956
your directors confirm that: - (I) in the preparation of the annual
accounts, the applicable accounting standards had been followed along
with proper explanation relating to material departures;
(ii) the Directors had selected such accounting policies and applied
them consistently and made judgments and estimates that they are
reasonable and prudent so as to give a true and fair view of the state
of affairs of your Company at the end of financial year and of the
profit of your Company for that period;
(iii) 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 your Company and
for preventing and detecting fraud and other irregularities;
(iv) the Directors had prepared the annual accounts on a going concern
CONSERVATION OF ENERGY, TECHNOLOGY AND FOREIGN EXCHANGE
Details of Conservation of Energy and Technology Absorption under
provisions of Section 217 (1)(e) of the Companies Act, 1956 read with
the Companies (Disclosure of particulars in the report of Board of
Directors) Rules, 1988 are given as Annexure to this report.
Foreign Exchange earning was 68.21 Lacs and the outgo was Rs.127.06
Lacs during the Year.
M/s ABN & Co. Chartered Accountants, Indore being Statutory Auditors of
the Company are liable to retire by rotation at the ensuing Annual
General Meeting and who being eligible offer themselves for
re-appointment. The Board recommends their re-appointment.
Report of the Auditors and their observations on the Accounts of the
Company for the year under review is attached herewith.
PARTICULARS OF EMPLOYEES
There is no information to be given in terms of section 217 (2A) of the
Companies Act, 1956 read with the rules framed there under.
The Directors thank the customers, vendors, investors, business
associates and bankers for their support to the Company.
The Directors also thank the Government of India, the Concerned State
Governments and other Government Departments and Government Agencies
for their cooperation.
FOR AND ON BEHALF OF THE BOARD
VASUDEO S. BHATE
DATE : 11th August, 2012