Directors present herewith the Annual Report and Audited Accounts for
(Rs. in crores)
No. Particulars 2011-12 2010-11 2011-12 2010-11
i. Gross Revenue 168.16 155.22 201.84 191.52
ii. Net Revenue 154.09 145.72 184.50 178.05
iii. Profit before 18.78 21.98 22.07 26.43
iv. interest 9.88 8.01 11.72 9.85
v. Depreciation 8.26 7.93 9.65 9.25
vi. Tax 0.19 0.84 0.29 1.65
vii. Profit after Tax 0.46 5.29 0.42 5.54
in order to conserve resources, the Directors decided not to recommend
dividend for the year.
The standalone gross turnover for the year at Rs. 168.16 crores were
lower than the projections and registered marginal increase over the
previous year. The off take from our primary markets was very slow
during the second half of the year under report.
Earnings before interest, depreciation and tax were lower at Rs. 18.78
crores as compared to Rs. 21.98 crores in the previous year.
The overall results are not very satisfactory, even though the business
environment was not conducive for business growth.
The markets remained very volatile with sudden drop in demand. The
Company could not replace the Railway metro business after the
completion of the previous project. We have bid as a supplier for
The Company acquired machines for setting up machine shop to cater to
power sector. However, the expected business could not be generated due
to sluggish market conditions. Cutting capacity was increased by adding
hi focus plasma cutting machines. This was necessitated because of
change in job mix which required cutting of higher thickness steel.
During the year the Company allotted 3,53,300 Equity shares of Rs. 10/-
each at a premium of Rs. 10/- per share under EsOP to employees of the
Company. The total amount received from the employees amounted to Rs.
sales in the first two months of the current year at Rs. 22.98 crores are
lower than Rs. 29.61 crores achieved in the same period in the previous
year. This is a continuation of the trend seen in the second half of
the previous year. The Company had added many new Customers and once
the business from new Customers reaches a reasonable volume the growth
will come back.
The business environment continues to be extremely challenging. it has
become very difficult to predict the customers requirements of regular
We are taking up more projects related business which provides better
visibility of business as projects go on for a period of 3-6 months.
Also this balances & hedges the risk of volatile business conditions in
the Automotive & Earth moving industry.
The impact of the introduction of new customers and projects based
business will be seen in the second half of the current year. This
should also result in improvement of margins.
The four main verticals namely Construction Equipment, Automotive, Rail
Transportation and Power (Transmission and Distribution) cumulatively
contributed 71% of the total revenue amounting to Rs. 108.95 crores.
improved demand of commercial vehicles resulted in increased sales to
automotive verticals to Rs. 43.13 crores or 27.99% of net sales compared
to Rs. 37.30 crores or 25.62% of net sales in the previous year.
Revenue from Rail Transportation vertical has gone down from Rs. 21.80
crores in the previous year to Rs. 11.64 crores representing a decrease
of 46.60 %.
Construction equipment vertical contributed Rs. 38.04 crores as against Rs.
33.50 crores in the previous year. sales from this vertical as a
percentage of net revenue increased from 23.01% in the previous year to
24.69% in the current year.
Revenue from Power (transmission and distribution) vertical has been
marginally lower at Rs. 16.14 crores as compared to Rs. 16.87 crores in the
previous year. The decline in business is to the tune of 4.32 %.
All the properties of the Company have been adequately insured against
fire, riot, earthquake and various other risks.
During the year under report, the Company has not accepted deposits
Mr. Vasant D. Goray retires by rotation and being eligible offer
himself for re-appointment.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to the requirement under section 217(2AA) of the Companies
Act, 1956, with respect to Directors'' Responsibility statement, it is
A) That in the preparation of Annual Accounts, the applicable
Accounting standards have been followed along with proper explanation
relating to material departure, if any;
B) That the Directors have selected such Accounting Policies and
applied them consistently and made judgment and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of Affairs of the Company as at 31st March, 2012 and of Profit of the
Company for the year ended on that date;
C) That the Directors have taken the 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
D) That the Directors have prepared the Annual Accounts of the Company
on a going concern basis.
PARTICULARS OF EMPLOYEES
During the year under report, no employees have drawn remuneration in
excess of the limits laid down under section 217(2A) of the Companies
Act, 1956 read with the Companies (Particulars of Employees)
(Amendment) Rules, 2011.
THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF
DIRECTORS) RULES, 1988.
The information is set out in Annexure - A.
EMPLOYEES STOCK OPTION PLAN
During the year Company allotted 3,53,300 Equity shares under the stock
Option scheme. The information required to be disclosed under sEBI
(EsOs & EsPs) Guidelines is given in Annexure B to the Directors''
M/s. Alladi Krishnan & Kumar, Chartered Accountants, statutory Auditors
of the Company retire and offer themselves for re-appointment.
The Company has obtained the requisite certificate required under
section 224 (1B) of the Companies Act, 1956 to the effect that their
re-appointment, if made, will be in conformity with the limits
specified in the said section and they are not disqualified for
reappointment within the meaning of section 226 of the said Act.
Your Directors wish to place on record their sincere appreciation of
the sustained and dedicated efforts put in by all the employees
collectively and concertedly as a Team.
The Directors would also like to thank the shareholders, customers,
suppliers, bankers and all the other business associates for the
continuous support given by them to the Company and their confidence in
On behalf of Board of Directors
Place : Mumbai Harshad B. Patel
Date : 29th May, 2012 Chairman