The Directors have pleasure in presenting the 27th Annual Report on
the business and operations of the Com- pany and the Audited Financial
Statement for the year ended 31st March, 2012.
(Rs. in Lacs)
Particulars 2011-2012 2010-2011
Sales & Other Income 51236.08 43763.35
Total Expenditure 47940.73 41645.36
Earning Before Finance Cost,
Depreciation and Tax 3295.35 2117.99
Less: Financial Costs 2038.41 953.37
Depreciation and Amortization
Expenses 451.90 246.47
Profit Before Tax 805.04 918.15
Current Tax 175.00 182.00
Deferred Tax 256.18 153.01
Relating to earlier years Tax (18.64) -
Profit (Loss) for the year 392.50 583.13
Basic & Diluted Earning Per Equity
Share of Face Value of Rs.10 each 1.34 2.00
The Directors recommend for a dividend of Rs.0.5 per Equity Share of
Rs.10/- each (i.e. 5%) for the year ended 31st March 2012.
Your Company continued to maintain its upward trend by registering
Sales of Rs. 51,192.53 lacs as against Rs. 43,544.30 lacs in the
previous year. Profit before Finance Costs, Depreciation, and Tax has
increased froMrs. 2,117.99 lacs to Rs. 3,295.36 lacs. After providing
for finance costs and Depreciation amounting to Rs. 2,038.41 lacs and
Rs. 451.91 lacs respectively, the Profit before Tax for the year under
review has amounted to Rs. 805.03 lacs as compared to Rs 918.14 lacs
in the previ- ous year. Net profit After Tax for the year has decreased
to Rs. 392.50 lacs as compared to Rs 583.13 lacs in the previous year.
Despite significant growth of industrial and service sector in India,
agriculture continues to be the main occupation of vast population of
our country and it significantly con- tributes to our national Gross
Domestic Product (GDP). The Central Government as well as various
State Govern- ments are giving grants to drip irrigation system so that
our farmers use the best quality products to ensure higher yield,
better quality and water conservation. Keeping in view of the vast
potentiality of micro irrigation business in India , the Company
intends to add drip irriga- tion lines, HDPE lines, PVC lines,
injection molding ma- chines and moulds as per requirements every year,
the capital cost of which shall be approximately 15 to 20 crores.
1. The Company outsourced various product and acces- sories used in
micro irrigation and sprinkle irrigation systems which results in heavy
cost. In order to save cost the Board take initiatives for acquiring
additional varieties of moulds for in-house manufacture of all these
product and accessories.
2. Considering the prospective demand of drip irrigation systems in
various states and looking towards the current order position the Board
decided to set up additional drip line at existing plant at Pithampur,
Dist. Dhar, Indore (M.P.).
1. The Company has obtained allocation for supply of drip irrigation
system to irrigate 5000 hectares of land as first installment for the
year 2012-13 by Govern- ment Of Andhra Pradesh, Department Of
Horticulture, Andhra Pradesh Microirrigation Project.
2. The Company has successfully installed additional capacity for
production of 2400 M.Ts of sprinkler pipes.
In accordance with Section 256 of the Companies Act, 1956 and the
Articles of Association of the Company, Shri Murlidhar Vashist will
retire by rotation at the ensuing Annual General Meeting and is
eligible for re-appointment.
Your Company has not accepted any public deposits within the meaning of
the provisions of section 58 A of the Companies Act, 1956.
The assets of the Company are adequately insured against the loss of
fire, natural calamities and such other risk considered by management
of the Company.
The Statutory Auditors of the Company, M/s. Ashok Khasgiwala & Co.,
Chartered Accountants, Indore , retires at the conclusion of the
ensuing annual general meeting of the Company and have confirmed their
willingness and eligibility for re-appointment and have also confirmed
that their re-appointment, if made, will be within the limits stipu-
lated under Section 224(1B) of the Companies Act, 1956. The Board
recommends their re-appointment for the next term.
The Board has duly reviewed the Statutory Auditors'' Report on the
Accounts. The observations appearing in the Auditors'' Report, does not
call for any further expla- nation/clarification by the Board of
Directors under Section 217(3) of the Companies Act, 1956.
DIRECTORS RESPONSIBILITY STATEMENT
Your Directors affirm that the audited accounts containing the
financial statements for the Financial Year 2011-12 are in conformity
with the requirements of the Companies Act, 1956. They believe that the
financial statements reflect fairly the form and substance of
transactions carried out during the year and reasonably present the
Company''s financial condition and results of operations. Pursuant to
Section 217(2AA) of the Companies Act, 1956, the Directors confirm
a) in the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
b) the accounting policies have been applied consistently and judgments
and estimates made are reasonable and prudent, so as to give a true and
fair view of the state of affairs of the Company as at the end of the
financial year and of the profit of the Company for that period;
c) proper and sufficient care has been taken to the best of their
knowledge and belief for the maintenance of adequate accounting records
in accordance with the provisions of the Companies Act, 1956, for
safeguard- ing the assets of the Company and for preventing and
detecting fraud and other irregularities;
d) the annual accounts have been prepared on a going concern basis.
Your Company has complied with the requirements of corporate governance
as per clause 49 of the Listing Agreements with the Stock Exchanges. A
detailed report on Corporate Governance is annexed to this Annual
Report. A certificate from the Statutory Auditors of the Company
regarding compliance of conditions of corporate governance has been
obtained and is enclosed with this Report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
A Management discussion and Analysis Report have been attached and
forms part the Directors Report.
PARTICULARS OF EMPLOYEES
There were no employees during the current year draw- ing the
remuneration more than the limit prescribed under section 217(2A) of
the Companies Act, 1956 read with Companies (Particulars of Employees)
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY & FOREIGN EXCHANGE
Information in accordance with the provision of Section 217(1)(e) of
the Companies Act, 1956 read with Compa- nies (Disclosure of
particulars in the report of Board of Directors) Rules, 1988 regarding
conservation of energy, technology absorption and foreign exchange
earnings and outgo are given in annexure `A` forming part of this
Your Directors acknowledge the vital role of conscientious and
hardworking employee of the Company at all levels towards over all
progress of the Company. Stockholders, Customers, Bankers have
continued to lend their valuable support to the Company. Your Board
takes this opportu- nity to record their appreciation in this regard.
For & On Behalf of the Board of Directors
Place : Indore Mukesh Sangla
Date : 30.08.2012 Chairman cum Managing Director