The directors of your Company wish to present the 17th Annual Report on
the Company together with Audited Statement of Accounts and Auditors
Report thereon for the year ended 31st March, 2007, The financial year
2006-07 has ended by leaving a profit of Rs. 22.22 Lakhs as against
last year profit of Rs. 10.42 lakhs. Though there is decrease in
production, but margin decline in sales due to change in product mix,
being more emphasis on production of motor vehicle parts.
THE YEAR IN REVIEW.
Product Name 2006-07 2005-06
C.I Castings 101 63
S G Iron Castings 229 55
M. V. Parts. 812 1042
Total (M.T): 1142 1160
The sales during the current year was Rs.. 577 Lakhs (previous year Rs.
594 Lakhs ). The company is in negotiation with more customers in
castings and M.V component segment as a result of which the sales are
likely to improve in next year.
The company has obtained a secured loan against property for Rs.45.00
Lakhs from the Punjab National bank, Jalandhar, being utilized as
working capital for the promotion of sales, the company has decided
to concentrate more on finished auto parts segments.
FUTURE OUT LOOK
Despite of the adverse market scenario, as aforesaid, your Company
proposes to increase the business of castings, machined castings and M.
V. Parts by exploring new more customers and new areas for which, steps
have already been taken up. Thus, a increase in business of your
company is anticipated in the next financial year.
STOCK EXCHANGES & LISTING FEES.
The shareholder may note that your company is listed with Ludhiana
Stock Exchange. The Stock Exchange. Mumbai. The Ahmedabad Stock
Exchange, Calcutta Stock Exchange and Delhi Stock Exchange. The arrears
of listing fees shall be paid in short time.
In view of marginal profit to the company, the Board of Directors were
unable to recommend payment of dividend this year.
ENERGY CONSERVATION AND TECHNOLOGY ABSORPTION.
Due importance has been given to energy conservation and development
programs. The statutory details in respect of energy conservation and
foreign exchange) outgo pursuant to Rule 2 of Companies ( Disclosure of
Particulars in Report of Directors). Rule 1988 are annexed to the
In accordance with the provisions of Companies Act, 1956 and Companys
Articles of Association, S/Sh. Manoj Kapoor, Arun Kapoor, & Mr. Ashok
Sareen directors of the Company are to retire by rotation and being
eligible has offered themselves for reappointment.
During the financial year, all the members of the board & the members
of the senior Management had complied with the code of conduct
formulated by the Board. The declaration for the same has been given by
the Managing Director of the Company and is annexed herewith as
OPPORTUNITY AND THREATS: With the increase in demand of castings and
auto components sector the company is getting inquiries of its products
from all segments especially tractor, automobile and pipe fitting
industry. So. the company is looking for a better future. The products
of the company are highly price sensitive due to great fluctuations in
the prices of raw materials and electricity prices. Against the upward
trend of costs, your company is not getting the price to substantiate
this increase in cost. However, your company is striving for cutting in
the costs wherever best can be possible. RISKS AND CONCERNS:
The volatility in raw material, electricity and wages rates in the
state as well as in the country has a bearing on the profitability of
the company. Finished goods prices are not increasing in direct
relation to the increase in costs. However, the company negotiates on
regular intervals with its customers to increase prices of finished
goods. Your company has made a move through the chamber of commerce and
industry to the central government to reduce the customs duty on
imported scraps and pig iron to overcome this problem.
In compliance of recently introduced Section 217(2AA) in the Companies
Act, 1956, your directors state that:
i. In the preparation of the annual account, the applicable accounts
standards had been followed along with proper explanation to material
ii. The Directors had selected such accounting policies and applied
them 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 financial year and of the profit of the
company for the period.
iii. The Directors had taken proper and sufficient care 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
iv That the Directors had prepared the annual accounts on a going
concern basis. ADEQUACY OF INTERNAL CONTROLS: Your company has
installed adequate internal controls system in combination with the
delegation of powers. The control systems are also supported by
internal audits and management reviews with documented policies and
The Company has complied with the requirements regarding Corporate
Governance as required under Clause 49 of the Listing Agreement entered
into with the Stock Exchanges, where the Companys shares are listed. A
report on the Corporate Governance in this regard is made a part of
this Annual Report and a Certificate from the Company Secretary of the
Company regarding compliance of the conditions of the Corporate
Governance is attached to this report.
INDUSTRIAL RELATIONS AND PARTICULARS OF EMPLOYEES.
The Company continues to maintain good industrial relations with the
employees. The Board places on record its appreciation of their
devotion to the Companys objectives. None of the Companys employee
comes under the provisions of Section 217 (2A) of the Companies Act
read with the Companies (Particulars of Employees) Rules 1975. as
amended. The number of employees as on 31.03.2007 were 79.
M/s Ashwani Gupta and Associates. Chartered Accountants. Jalandhar will
hold office until the conclusion of 16th Annual General Meeting. Being
eligible they offered themselves for reappointment. So, they are
recommended for reappointment from the conclusion of the 17lh Annual
General Meeting to the 18lh Annual General Meeting. The certificate
with regards to their appointment has been received so far and the
appointment, it made, would be within the limits prescribed under
section 224(1B) of the Companies Act, 1956.
The observation and suggestions pointed out by the auditors in their
report and in notes on accounts for this period also contain reasons
thereof, which are self explanatory, such as the management expect full
recovery from debtors, is in search of customers for old stock, the
management promises employees dues to be deposited regularly in future.
DEMATER1ALIZAT1QN OF SECURITIES.
Securities & Exchange Board of India has directed that
dematerialization of the equity shares of your company is compulsory
for listing of shares. Therefore, your Company has already submitted an
application to NSDL and CDSL and is in process for executing necessary
agreement and for has appointed Registrar & Transfer Agent for
dematerialization of its securities.
Your Directors wish to record their thanks to the Shareholders, banks
government authorities and to the staff for the continued support and
Place: Jalandhar For & on behalf of the Board
Date : July 28 2007. Rajinder Kapoor, Mg. Director