The Directors submit herewith the Twenty Third Annual Report together
with Audited statement of accounts for the year ended on 30/09/2012.
FINANCIAL RESULTS Amount in Rupees (in Lacs)
Financial Results 2011-12 2010-11
Gross Income 12587.31 17748.14
Profit/(Loss) before Interest and
Depreciation (561.18) 279.77
Less-Interest 1303.62 1206.40
Profit/(Loss) before Depreciation (1864.80) (926.63)
Less-Depreciation 576.53 575.91
Profit/(Loss) before Tax (2441.33) (1502.54)
Less-Provision for tax - -
Profit/ (loss) After Tax for the year (2441.33) (1502.54)
Less- Deferred Tax Adjustment - -
Balance brought forward 111.38 1613.92
Profit available for Appropriation (2329.96) 111.38
In view of the loss for the year, the directors of the company have not
recommended any dividends on the equity shares.
REVIEW OF OPERATIONS
The Working capital remained a challenge for the Company. Having
drained out practically all the working capital to the payment of
interest and Installments to the banks, the Banks had taken the Company
to the CDR Forum. The CDR forum approved the scheme of rehabilitation
on 25th March, 2011. The Banks however are still in the process of
trying to implement and are being pursued for implementation. Without
the implementation the moratorium also has expired and the Banks have
been demanding repayment without implementation of the scheme. The
Company has taken the non implementation at proper for a and is trying
to get what is legally due to it. In absence of the package and Banks
not sticking to rule the running is a challenge and the Company has
recorded a lower turnover of Rs. 12587.31 lacs as against the turnover
of Rs 17748.14 lacs in the corresponding previous year. There was loss
after tax of Rs. 2441.33 lacs as against loss after tax at
Rs.1502.54lacs in the previous year. The directors are hopeful that the
company would come out of red in if the bankers lend a helping hand.
The Demand for Company''s products continues to remain moderate and
paucity of funds only hamper the activity. The Implementation of the
strategic cost management initiatives has resulted in improving
PRODUCTION AND PERFORMANCE
The Company has produced Pigments to match international quality. The
production achieved during the year was 4128 tons of Pigment. The
Capacity utilization in this product was 12.90 %. However the Pigment
capacity utilization was low on account of the paucity of funds which
mainly have been deployed in the past for interest payment and
Installment repayment to Banks when even the plant of the Company was
not completed. The Company hopes to achieve decent capacity utilization
if the funds are replenished.
The demand for the product of the Company has shrunk a bit because of
the lowering of demand of the print media. However the Company has
alternative plans to even produce the products at lower est and survive
in the market.
The Company''s exports to counties in Europe, Latin America and the
Asian Far East were aggregated to the value of Rs.2077.06 Lacs. There
was however a set back to the brand of the Company because of unsavory
letters by the Banker to certain customers. The Company is a little
challenged because of this letters. However it is hopeful to overcome
the name it has earned and regain the niche in exports again over a
little extended period of time.
The Company''s Equity Shares continue to be listed on the Stock
Exchange, Mumbai (BSE). The Company has paid the requisite Annual
Listing Fees for the years 2011-12 to the above Exchange. The Company''s
Shares continue to be regularly traded on the exchange.
COMPULSORY DEMATERIALISATION OF COMPANY''S SHARES
The Company''s Equity Shares were compulsorily dematerialized and as
such the Company''s Shares continue to be traded in the electronic form
as per the relevant SEBI guidelines.
Mrs. Dinesh Sharma retires by rotation at the ensuing Annual General
Meeting (AGM) and being eligible, offers himself for re-appointment.
During the year Mr. Brahmanand dabas has resigned as directors with
effect from 19.04.12, the board appreciated the contribution made by
him during his tenure as directors. Mr. Shankerlal Sharma was appointed
on 07.04.12 & has resigned with effect from 31.07.12 for personal
reasons. Mr. Govind Sharma was appointed as an additional on 07.04.12
to hold office up to the date of this Annual General Meeting.
Pursuant to the requirement under section 217(2AA) of the Companies
(Amendment) Act, 2000, with respect to Directors'' responsibility
statement, it is hereby confirmed:
1) That in the preparation of the accounts for the financial year ended
30th September, 2012; the applicable accounting standards have been
followed along with proper explanation relating to material departures.
2) That the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that were
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 and of the
profit of the company for the period under review:
3) That the directors 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
4) That the Directors have prepared the accounts for the financial year
ended 30-09-2012 on a going concern basis.
The Company has complied with the requirements of Corporate Governance,
as applicable to the Company, during the period under report, as per
the amended Listing Agreement with the Bombay Stock Exchange. The
Report on Corporate Governance together with the Auditor''s Report
thereon, is annexed hereto in accordance with Clause 49 of the Listing
Agreement with the Bombay Stock Exchange.
IWs. Sayeed Khan & Associates, Chartered Accountants, Mumbai, the
Statutory Auditors of the Company, retire at ensuing Annual General
Meeting and are eligible for re-appointment.
COST RECORDS AND COST AUDIT
Till the year 2011, cost records were made compulsory U/S Sec 209
(1)(d) of the companies Act, 1956 and no company specific cost audit
was ordered in case of your company by the Central Government. Now in
terms of the companies (Cost Accounting Records) rules 2011 and the
companies (Cost Audit Report) rules, 2011 both dated 3rd June 2011. the
company is liable to maintain cost records as well as will have to
undertake independent cost audit from practicing Cost and Works
Accountant. The company Is in the process of appointing required cost
accountant for undertaking of the cost audit in due compliance ofthe
As on date, none of the employees of the company fall within the purview
of the provision of the section 217(2A) of the Companies Act, 1956 read
with the Companies (Particulars of Employees) Rules, 1975, and
Companies (Particulars of Employees) Amendment Rules, 2011, Relations
between the management and its employees have been cordial. Your
Directors place on record their appreciation of the efficient and loyal
services rendered by the employees of the Company at all levels.
ENERGY, TECHNOLOGYABSORPTION AND FOREIGN EXCHANGE
The information required under Section 217(1)(e) of the Companies Act,
1956 read with the Companies ( Disclosure of Particulars in the Report
of the Board of Directors) Rules, 1988, with respect to conservation of
energy, technology absorption and foreign exchange earnings and outgo
is appended hereto as Annexure ''A'' and forms part of this Report.
1.Observation by the auditor at point no 2 (i)- The Company is
following up with the appropriate authorities the non implementation of
the CDR package. It is hopeful of showing to the authorities the
relevant RBI guidelines to the bankers so that the scheme is
2.The trial run batches are non moving. These will be tried to be
rectified or else dealt with appropriately.
3,The gratuity liability is being paid as and when it is arising. The
Company has also asked for an actuarial help. However the lean position
of the Company necessitates to be frugal with expenses.
There however are no unpaid gratuity or any unpaid workmen dues.
Your Directors place on record their appreciation of the support
received from the Company''s Bankers and Shareholders and look forward
to their continued support and goodwill.
By Order of the Board
for SHREYAS INTERMEDIATES LTD
Place : Mumbai DINESH SHARMA
Date: March 2nd, 2013 CHAIRMAN