To, The members of PIX Transmissions Ltd,
The directors are pleased to present the THIRTIETH ANNUAL REPORT and
the Audited Statement of Accounts for the year ended 31st March 2012,
together with notice of Annual General Meeting.
Given below is the financial performance of the Audited Accounts for
the year ended 31st March 2012:
(Rs. in lacs)
As on As on
Particulars 31.03.2012 31.03.2011
Sales (Net -Excise) 21822.78 22829.35
Other income - 8.03
Profit before Depreciation 2105.65 2613.24
Depreciation 2025.37 1995.86
Profit before tax after
depreciation 80.28 617.38
Less: Provision for taxation
a) Current year 40.00 140.00
b) Deferred Tax Liability (21.74) 113.04
Capital Redemption Reserve - 647.50
Proposed Dividend - 96.94
Tax on Dividend - 16.46
Total 62.01 (396.56)
Balance of Profit Brought down 776.13 1172.69
Amount available for
& Carried to Balance Sheet 838.14 776.13
The Company''s Sales & Income during the Financial
Year 2011-12 computed of the following:
(Rs. in lacs)
No. Particular current previous
1. Belts 16403 16115
2. Hoses 5818 6367
3. End Fittings 203 113
4. Other items 537 1208
1. PIX Europe Limited, U.K. - Joint Venture
PIX Europe Limited promoted to carrying on business of PIX Products and
other products in the market of European Countries, Germany and China.
2. PIX QCS Limited, Ireland - Joint Venture
PIX QCS Limited promoted to carrying on business of PIX Products and
other products in the market of Ireland.
The subsidiaries of the company during the year under review a re given
1. PIX South America Importacao E Exportacao De Correias E Mangueiras
PIX South America Importacao E Exportacao De Correias E Mangueiras Ltda
promoted to carrying on business of PIX Products in the market of
Argentina, Chile, Brazil & Peru etc.
The joint venture agreement with the subsidiary company has been
revoked with effect from 15th April, 2011 and investments have been
sold off during the year.
2. PIX Middle East FZC, UAE.
PIX Middle East FZC promoted to carry on business of PIX Products in
the market of Middle East Countries.
PRODUCT DEVELOPMENTTO JUSTIFY WIP
The company has incurred expenditure on development of production of
various new belts for local and Export market. The company intends to
develop manufacture of speciality belts for the hitec applications and
innovations that are coming in the power transmissions industry and MF
type belts for the new generation packaging machines and EPDM rubber
cover belts for automotive industries. These would be able to withstand
the temps and perform longer.
All the above are new generation products that the company is now
proceeding to manufacture to take care of the future needs of the power
During the year the company has incurred expenditure on development of
new products which are yet to be manufactured commercially. The
expenses incurred up to 31.03.2012 have been carried forward in capital
work in progress.
Opening balance as 01.04.2011 Rs. 38,050,000.00
Addition during the year Rs. 170,621,953.00
Total Work in Progress as
on 31.03.2012 Rs. 208,671,953.00
Pursuant to clause 49 of the Listing Agreement with the Stock Exchange,
Management Discussion and Analysis Report, Corporate Governance Report
and Certificate on Corporate Governance are annexed to this report.
Pursuant to section 217(2AA) of the Companies Act, 1956, The Board of
Directors report that:
I) In the preparation of the annual accounts, the applicable Accounting
Standards have been followed along with proper explanations relating to
material departures, and there are no any material departures.
ii) Accounting Policies have been selected and applied consistently and
the judgments and estimates made are reasonable and prudent so as to
give a true and fair view of the statement of affairs of the company at
the end of the financial year and of the Profit or Loss of the company
for that period.
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
the preventing and detecting fraud and other regulation.
iv) The Annual Accounts have been prepared on a going concern basis.
The Company has not invited and accepted deposits from the public
during the financial year ended 31st March 2012.
The assets of the Company are adequately insured against the risk of
fire and other risks.
Particular of Employees
Under the provision of Section 217(2A) of the Companies Act, 1956 read
with Companies (Particulars of Employees) Rules, 1975 as amended, the
names and other particulars of employees are set out in the
Annexure to the Directors'' Report. However having regard to the
provisions of Section 219(1) (b) (IV) of the Companies Act, 1956, the
annual report excluding the aforesaid information is being sent to all
the members of the company and others entitled thereto. Any member
interested in obtaining such particulars may write to the company
secretary at the registered office of the company.
To appoint Directors in place of Mr Karanpal Sethi,
Mr Jose Jacob, Mr Pradeep Havnur, Mr Aqueel Mulla & Mr Om Prakash Arora
directors of the company who retire by rotation and being eligible
offer themselves for re-appointment.
M/s S. C. Bandi & Co. Chartered Accountants, Auditors of the Company,
retire at the conclusion of the ensuing Annual General Meeting and
being eligible offer themselves for re-appointment. Members are
requested to re-appoint statutory auditor and fix their remuneration.
The notes forming part of the accounts are self- explanatory and do not
call for any further clarifications under Section 217(3) of the
Companies Act, 1956.
As per the requirements of Central Government and in pursuance of
Section 233B of the Companies Act, 1956, your Directors have appointed
M/s Manisha & associates, Nagpur, Cost Accountants, as cost auditors of
the Company to carry out the audit of cost accounting records for the
financial year 2011-12.
CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION
A. Conservation of Energy
Company is always looking towards every step in the direction of
conservation of energy, mainly from following major energy sources:
1.0 Conservation of Water
1.1. By setting up a new sewage treatment plant & upgrading the
effluent treatment plant, treated water is used for gardening, floor
washing, toilets etc which resulted in reduction of fresh water
1.2. Installation of cooling towers for recirculation of water used for
machines cooling, conserve the ample quantity of fresh water.
1.3. Use of reverse osmosis plant & water softening plant for treating
of raw water, helps to reduce feed water consumption in boiler,
increases the life of process machineries and provide good quality of
1.4. Collection of maximum amount of steam condensate, reduce the feed
water consumption in Boilers.
1.5. Company is introducing rain water harvesting systems which will
help to retain the rainwater in ourarea and conserve the water.
2.0 Conservation of Steam
2.1 Reuse of condensate has reduced the consumption
- of furnace oil.
2.2 Heating of water by using flash steam in process area has reduced
the steam consumption.
2.3 Reduction in furnace oil consumption by use of good quality water
for boiler feed & regular cleaning & maintenance of boilers.
2.4 Optimum utilization of steam, control on wastage & leakages of
steam and maintaining proper insulation has contributed to saving of
3.0 Conservation of Electricity
3.1 Optimum utilization of compressed air & chilled water, has
contributed to saving of electricity.
3.2 Conversion of electric heating to steam heating has reduced the
3.3 A conventional lighting system in plant and offices replaced by
energy efficient electronic lighting system has reduced significant
3.4 Maintaining the power factor to near unity level by continuous
monitoring & proper maintenance resulting in conservation of
3.5 Seasonal switching off of cooling tower fans, water chillers & air
conditioners, controlling the wastages and misuse helps to conservation
4.0 Supply of better quality water and reduction of consumption of
water steam / furnace oil and electricity have improved consumption
ratio with respect to per ton of finished product, thereby conserving
I. The Major sources of energy in the company are:
1. Furnace Oil
1. Conservation of Furnace Oil:
a. Waste heat recovery systems have been introduced in pot and press
section. The waste heat is utilized for pre-heating of boiler feed
b. Dual heating system for furnace oil has been incorporated in
Above improvements incorporated in steam generation and distribution
have resulted in improvement in steam to fuel ratio.
2. Conservation of Electricity:
a. Monitoring and maintaining system power factor to near unity level
has contributed to saving in electricity consumption.
b. Improvement in water circulation systems and seasonal switching off
of cooling tower fans and water chiller have significantly contributed
to savings in electrical energy.
c. Impact of measures on reduction of energy, consumption and
consequent impact on the cost of production of goods.
d. The consumption of furnace oil and electricity per ton of
production has reduced considerably.
The Form A for disclosure of particulars with respect to conservation
of energy is attached to the Director Report.
B. Technology Sbsorption
Efforts made in technological absorption were carried out by the
company. After total introduction of new products the same will be
absorbed and maintained for higher productivity and better quality.
C. Foreign Exchange Earnings & Outgo
Particulars regarding foreign exchange earnings and outgo are presented
in Schedule 16 of the Audited Account.
The Company has retained its status as a net forex earner.
Corporate Social Responsibilities:
The company adopted a physically disabled school for children at
village Jiatala. The mid day meal and the school operation budget are
sponsored by PIX Transmissions Ltd.
The Company created a fund for treating terminal sickness for the
families of the nearby village which houses most of our workmen.
The Company provides ambulance to two adjacent villages for
transferring sick patients to the hospital. Both villages do possess
Primary Health Centers but are about 40 kms from the city centre where
a fully equipped hospital exists.
The Company organizes Blood Donation Camp twice a year.
PIX is committed to follow systematic approach to achieve continual
improvement in environmental performance by strengthing the greening of
supply chain, occupational health & safety while complying with all
applicable legal, safety legislation and other requirements.
Design & Development/Testing Laboratory
The strength of PIX lies in the introduction of new products through
robust Design, Development, Testing and introduction. The Design and
Development activity at PIX is carried out using the best resources and
PIX has at its disposal a rich talent pool of technical manpower from
Rubber Technology, Mechanical Engineering, Computer Engineering and
Material Procurement who design and develop the product and process.
PIX has state-of-the-art facilities capable for validating and
verifying the entire product range of Hoses, Belts and Assemblies that
the organization has in its range and proposes to innovate.
PIX has foot prints in the global market place by setting the pace for
reduced innovation cycle time for turning around a product. All Design
and Development outputs are reviewed at regular intervals by the Top
Some of the Govt. Agencies are sending their products for testing to
our Laboratory. PIX is moving towards accreditation of our Testing
Centre from the Department of Science and Technology which will then
function as a Profit Centre.
The Directors wish to place on record their appreciation towards all
associates including Customers, Collaborators, Government Agencies,
Financial Institutions, Bankers, Suppliers, Shareholders, Employees and
others who have reposed their confidence in the Company.
For and on behalf of the Board of Directors
Chairman & Managing Director