Your Directors have pleasure in presenting the Twenty Eighth Annual
Report with the audited accounts of the Company for the year ended 31st
FINANCIAL RESULTS Rs.in lacs.
Gross profit before Interest, Depreciation and Tax 741.59 473.56
Less: Interest and Depreciation 245.71 253.59
Profit before Tax 495.88 219.97
Less: Provision for Taxation (107.00) (14.25)
Fringe Benefit Tax (12.00) -
Deferred Tax Assets (64.56) (68.71)
Profit after Tax. 312.32 137.01
Excess Provi. Of I. Tax W.Back 8.00 -
Profit for the year 320.32 137.01
Add : Balance brought forward from last year. 402.86 265.85
Profit available for appropriations 723.18 402.86
- Proposed Dividend 42.37 -
- Provision for Tax on Proposed Dividend 5.94 -
- Transfer To General Reserve 31.00 -
Balance carried forwarded to next year 643.87 402.86
OPERATING RESULTS :
The Company has faired well during the year under review. The sales of
the Company has increased both in domestic and export segment. The
Sales during the year were Rs.5740.74 Lacs as against Rs.4192.38 Lacs
in the previous year. The sales thus registered an overall increase of
36.93% including an increase in export to the tune of 85.30% as
compared to the last year export. The net profit of the Company is also
increased from Rs.137.01 Lacs to Rs.312.31 Lacs registering the growth
of about 127.90%. The prospect of the Company for the current year both
in domestic and export segment is also good. The Company has recently
installed One no. of Windmill at Kurunga, Dist: Jamnagar which will add
to the profitability of the Company during the current year.
The Company continued to launch a numbers of new and higher value added
products which will further strengthen the Companys competitiveness in
In view of the Companys profitable performance, the Directors are
pleased to recommend for approval of shareholders a dividend ofRs. 1.20
(Tax Free) per Equity share of the Company in respect of the financial
year ended on 31st March, 2006. (Previous Year Rs. Nil). The said
dividend shall be payable to those members whose names appear on the
Register of member of the company on record date.
FIXED DEPOSITS :
There is no deposit outstanding/unpaid as at 31st March, 2006.
In accordance with the provisions of the Companies Act, 1956, and
Articles of Association of the Company, Mr.D.B.Nakum and Mr.K.J.Mehta,
Directors of the Company retire by rotation at the ensuing annual
general meeting and being eligible offer themselves for re-appointment.
DIRECTORS RESPONSIBILITY STATEMENT :
Pursuant to Section 217(2AA) of the Companies (Amendment) Act, 2000,
your Directors confirm that:
(a) In the preparation of the annual accounts, the applicable
accounting standards have been followed.
(b) Appropriate accounting policies have been selected and applied
prudent so as to give a true and fair view of the state of affairs of
the Company as at March 31, 2006 and of the profit of the company for
the year under review.
(c) 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
preventing and detecting fraud and other irregularities.
(d) The annual accounts have been prepared on a going concern basis.
M/s. Dhirubhai Dand & Co. Chartered Accountants, the auditors of the
Company retire at the conclusion of the ensuing Annual General Meeting.
They are eligible for re-appointment and have furnished the certificate
to the effect that their appointment, if made, will be in accordance
with the limits specified under Section 224(8) of the Companies Act,
COST AUDITORS :
Pursuant to the provisions of section 233B of the Companies Act, 1956
necessary approval had been obtained from the Department of Company
Affairs for the appointment of M/s. S. B. Parikh & Co. as Cost Auditors
to Audit the Cost Accounts maintained by the Company for the year ended
on 31st March, 2006.
PREFERENTIAL ALLOTMENT OF EQUITY SHARES:
The Company has allotted 2,56,000 nos. of equity shares on Preferential
basis to the Promoters and Foreign Company @Rs.105/- per share
including premium of Rs.95/- each in accordance with the prescribed
guidelines. The Company has applied for Listing and trading approval to
Mumbai Stock Exchange Limited. The Company has partly used the said
fund for working capital facilities.
PARTICULARS OF EMPLOYEES :
The particulars of employees as required Under Section 217(2-A)of the
Companies Act, 1956, read with the Companies (Particulars of Employees)
Rules 1975 is given in the annexure appended hereto and forms part of
this Report. As per the Provisions of Section 219 (1) (b) (iv) of the
Companies Act, 1956, the report and accounts are being sent to the
Shareholders of the Company, excluding the statement of particulars of
employees under Section 217(2A) of the Act. Any share holder interested
in obtaining a copy of the said statement may write to the Secretarial
department at the Registered Office of the Company.
SUBSIDIARY COMPANY :
As required U/s. 212 of the Companies Act, 1956, the audited statement
of Accounts for the year ended on 31st March, 2006 of Accurate
Engineering Inc. U.S.A., the wholly owned subsidiary, together with the
report of the Auditors and also the statement U/s. 212 of the Companies
Act, 1956 are annexed.
CORPORATE GOVERNANCE REPORT:
A separate section on Corporate Governance and a Certificate from the
Auditors of the Company regarding compliance of conditions of Corporate
Governance as stipulated under Clause 49 of the Listing Agreement with
the Stock Exchanges are annexed to this report.
MANAGEMENT DISCUSSION AND ANALYSIS STATEMENT:
A Report on Management Discussion and Analysis Statement is separately
annexed to this report.
INDUSTRIAL RELATIONS :
The industrial relation with workmen and staff continued to be
extremely cordial during the year under review.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO:
The particulars as prescribed under section 217(1)(e) of the Companies
Act, 1956 read with Companies (Disclosure of Particulars in the report
of Board of Directors) Rules 1988 are set out in an Annexure to this
The Directors wish to place on record their gratitude for the continued
co-operation and patronage extended by the esteemed customers both in
OEM and after market segments. The Directors would also like to place
on record their sincere appreciation for the continued co-operation,
guidance, support and assistance during the year under report by our
Bankers, all the customers, suppliers of the Company including
Government agencies. The Board of Directors also wish to express its
appreciation for the efforts and contribution made by the employees at
all levels during the year under report.
On behalf of the Board of Directors.
N C VADGAMA
Place : Patla, Dist.: Junagadh.
Date : 29th June, 2006