The Directors are pleased to present herewith 21th Annual Report of
the Company together with the audited statement of accounts for the
Financial Year ended 31 st March, 2012.
1. Financial Results
Particulars Year Ended Year Ended
Income from Operations 67,895,428 307,155,433
Sale of Goods - 352,616,624
Other income 4,083,941 2,550,115
Increase/ Decrease in Inventory/
Stores & Spares (7,639,943) (714,920)
Total Income 64,339,426 661,607,253
(a) Purchase of Goods 13,790 366,265,000
(b) Operating Expenses 25,099,498 260,662,347
(c) Employment Cost 6,801,321 22,142,100
(d) Administrative, Selling & Other
Expenses 2,561,241,049 336,660,475
Total Expenditure 2,593,155,658 985,729,923
Profit before interest and
Depreciation and Tax (2,528,816,232) (324,122,670)
Interest & Finance Changes 13,235,424 125,739,463
Depreciation & amortization of Assets 109,170,000 178,750,215
Profit before Tax (2,651,221,656) (628,612,348)
Current Tax -
Deferred Tax 164,119,016 15,839,604
Fringe Benefit Tax - -
Net Profit After Tax (2,487,102,640) (612,772,744)
Add: Balance brought forward
from previous year 161,368,155 774,157,081
Profit Available for Appropriation (2,325,734,484) 161,368,155
Dividend-Short Provision (FY.: 2008-09) - -
Tax on Dividend-Short Provision
(FY.: 2008-09) - -
Balance carried to Balance Sheet (2,325,734,484) 161,384,336
Earning Par Share (Rs.) Basic (57.31) (14.12)
learning per share (Rs.) Diluted (57.31) (14.12)
Paid Up Equity Share Capital (Rs.
10/-per share) 433,988,040 433,988,040
b) Financial Restructuring:
As per the current financial Period results the Management of the
Company has decided to file an application in BIFR for management
Erosion of Networth - Reference to Board for Industrial and financial
Reconstruction (BIFR) - On Account of Losses incurred during the Period
under review and also with carried forward losses of past years, the
entire net worth of the Company has got eroded at the end of the period
on March 31, 2012. Therefore, Company is required under the provisions
of Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) to
make a reference to the Board for Industrial & Financial
Re-construction (BIFR) for determination whether the Company is a Sick
Industrial Company or not which and Company will shortly file the same.
If an order declaring the Company as Sick Industrial Company is passed,
BIFR will appoint an Operating Agency to examine and recommend the
measures for revival of the Sick Company. The management will take all
possible steps for revival of the Unit.
For the financial year 2011-12 your directors have decided not to
declare any dividend.
Construction and infrastructure is in a momentum growth phase and
with an excellent business model coupled with strong execution
capabilities and thriving order book position, the company is expected
to have robust growth in income and profitability.
Considering the immense potential in the field, your company has
entered into trading in steel and coal. Going forward we anticipate
consistent revenues from this sphere as well.
5. DIRECTORS''RESPONSIBILITY STATEMENT
As required under section 217(2AA) of the Companies Act, 1956, your
Directors would like to confirm that:
(i) that in the preparation of the annual accounts, the applicable
accounting standards have been followed.
(ii) that we have 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 the financial year 2010-2011 and the profit/
Loss of the Company for that year.
(iii) that we have 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 irregularities
(iv) that we have prepared the annual accounts on a going concern
6. TERM DEPOSITS
The Company has not accepted any public deposits and, as such, no
amount on account of principal or interest on public deposits as per
section 58A of the Companies Act 1956, was outstanding on the date of
the Balance Sheet.
The Report of Directors and Statement of Accounts of subsidiary
Petrogrema Overseas PTE Ltd. together with the Auditors'' Report
thereon, are attached. The requisite statement pursuant to Section 212
of the Companies Act, 1956, related to these subsidiary companies is
also attached herewith.
During the year under review, Turnover and Net Loss for the year was
Rs. 678.95 Lacs and Rs. 24871.03 Lacs as compared to the previous year
Rs. 6,597.72 Lacs and Rs.6,127.89 Lacs The Decrease in the Turnover is
due to poor capacity utilization, financial crises and Amortisation of
machineries in the business.
The Company has taken over Saw Pipe Division of Sancia Infraglobal
Private Limited on a going concern basis with full assets and
liabilities of the Saw Pipe Division.
9. INTERNAL CONTROLS & ADEQUACY
Your Company has adequate system of internal controls to ensure that
all assets are safeguarded, transactions are authorized, optimum
utilization of resources, costs are controlled, reporting of financial
transactions and compliance with applicable law and regulations.
During the year:
Mr. Pradeep Sutodia, Director of the Company, retirdsby rotation and
being eligible, offers himself for re-appointment at the ensuing Annual
Mr. Arun Kumar Ray who was appointed as an Additional Director, has
been Managing Director of the Company for the period of 3 years w.e.f.
February 14, 2012 subject to the approval of the shareholders of the
Company in the ensuring Annual General Meeting of the Company.
Mr. Kishore Kumar Damani and Mr. Ravi Kumar Mandol were appointed as
a,Director of the Company w.e.f. August 17,2011 and January 30,2012.
Mr. Hariharan Nurani who was appointed as a Director of the Company
w.e.f. May 13, 2011 have resigned w.e.f. February 01,2012
M/s. Rahul Bansal & Associates, Chartered Accountants, who are
statutory auditors of the Company, retire from the company as he
12. AUDITOR''S REPORT
Your directors are of the view that Notes to the Accounts adequately
provide the necessary information and answer the observations of the
Auditors in their Report.
13. MANAGEMENT DISCUSSION AND ANALYSIS
In accordance with the listing agreement, the management discussions
and analysis report is annexed hereto and forms part of this report.
14. CORPORATE GOVERNANCE
A report on Corporate Governance, along with a certificate from the
Statutory Auditors and a certificate from the Managing Director has
been included in the Annual Report, detailing the compliances of
corporate governance norms as enumerated in Clause 49 of the Listing
Agreement with the stock exchange.
15. CONSEVARVATION OF ENEREGY, RESEARCH & DEVELOPMENT, TECHNOLOGY,
ABSORPTION AND FOREIGN EXCHANGE EARNING & OUTGO
The information pertaining to conservation of energy, technology
absorption, foreign exchange earnings and outgo, as required under
section 217(1)(e) of the Companies Act, 1956 read with Companies
(Disclosure of particulars in the report of the Board of Directors)
Rules, 1988 is given as per Annexure ''A'' and forms part of Director''s
The Directors thank the Company''s customers, vendors, investors,
business associates, bankers for their support to the company. The
Directors appreciate and value the contributions made by every member
of the Sancia Global family across the country.
For and on behalf of the Board
Place: Mumbai Johnny Fernandes
Date : May 23,2012 Whole Time Director