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MIC Electronics Ltd.

BSE: 532850 | NSE: MICEL |

Shares falling in the `Trade-to-Trade` or `T-segment` are traded in this series and no intraday is allowed. This means trades can only be settled by accepting or giving the delivery of shares.
Series: BE | ISIN: INE287C01037 | SECTOR: Telecommunications - Equipment

BSE Live

Jan 21, 16:00
30.20 1.00 (3.42%)
Volume
AVERAGE VOLUME
5-Day
190,468
10-Day
285,278
30-Day
317,217
644,624
  • Prev. Close

    29.20

  • Open Price

    27.75

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Jan 21, 15:59
29.50 1.00 (3.51%)
Volume
AVERAGE VOLUME
5-Day
207,683
10-Day
429,071
30-Day
319,206
992,249
  • Prev. Close

    28.50

  • Open Price

    27.10

  • Bid Price (Qty.)

    29.50 (503782)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2016 2015 2014 2013 2012 2011 2010 2009 2008

Director’s Report

The Directors have pleasure in presenting the Companys twentieth annual report on its business and operations together with the audited statement of accounts for the year ended 30th June 2008. Financial results The financial results for the year ended 30th June 2008 are as under: (Rs. in crores) Particulars 2007-08 2006-07 Total income 314.01 241.26 Profit before interest, depreciation & tax 84.21 39.87 Interest 2.58 2.44 Depreciation 1.88 1.68 Provision for taxation 13.93 3.39 Profit after interest, depreciation & tax 65.82 32.36 Dividend 4.03 4.03 Provision for dividend tax 0.68 0.68 Transferred to general reserve 5.00 3.00 Balance brought forward 46.59 21.94 Balance carried forward to Balance Sheet 102.70 46.59 Dividend Your Directors have recommended a dividend of Rs. 0.40 paise per share (20%) on par value of Rs. 2 per equity share for your approval. Review of operations The Company continued to achieve significant growth in 2007-08. Total income of the Company grew by 32.18% from Rs. 239.93 crores in 2006-07 to Rs. 317.14 crores in 2007-08. Post tax profit of the Company surged by 103.41% from Rs. 32.35 crores in 2006-07 to 65.82 crores in 2007-08. The growth was largely attributed to increased volumes. The Company sold 164 LED display units in 2007-08 against 90 units in 2006-07. The Company also sold 978 value-added LED lighting solutions in 2007-08. Corporate Governance The Company has been following the principles and practices of good Corporate Governance and has ensured due compliance of the requirements stipulated under Clause 49 of the Listing Agreement with the stock exchanges. A separate report on Management Discussion and Analysis, Corporate Governance and Auditors Certificate, regarding compliance of conditions of Corporate Governance are annexed to the annual report. Listing Agreement Compliance The Companys equity shares are listed on the Bombay Stock Exchange Limited, Phiroz Jeejeebhoy Towers, Dalal Street, Mumbai 400 001 and the National Stock Exchange of India Limited, Exchange Plaza, Plot no. C/1, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. The Company has paid the listing fees for the Financial Year 2008-09 to each of the said stock exchanges and had currently complied with the conditions of the Listing Agreement. Fixed deposits The Company has not accepted any deposits from the public or shareholder during the year. Directors Shri Nimmagadda Srinivasa Rao, Shri Yarlagadda Harishchandra Prasad and Shri Atluri Venkata Ram, Directors, retire by rotation at the ensuing Annual General Meeting and are eligible for re-appointment. During 2007-08, Shri Shrikant P Joshi was appointed as an Executive Director by the Board at its meeting held on 19th November 2008 and his appointment is subject to the approval of the members at the ensuring Annual General Meeting. The Company has received a notice from a member in accordance with the provisions of Section 257 of the Companies Act, 1956, proposing his candidacy as an Executive Director. With effect from 21st March 2008 Shri Mangilal Kalani, Director, resigned due to his preoccupations. Directors responsibility statement Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956, your Directors confirm to the best of their knowledge and belief that: I. in the preparation of annual accounts, the applicable accounting standards have been followed and there were no material departures; II. the accounting policies selected have been applied consistently, judgments and estimates that are reasonable and prudent have been made so as to give a true and fair view of the state of affairs of the Company as at 30th June 2008 and of the profit of the Company for the period ended 30th June 2008; III. proper and sufficient care is 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; IV. the annual accounts have been prepared for the year ended 30th June 2008 on a going concern basis; Subsidiary companies A statement of Infostep Inc, USA and MIC Technologies (Australia) Pty Ltd, MIC Electronics Inc. USA, and Maave Electronics Pvt Ltd financial statements, directors and auditors report of the same are enclosed as required under Section 212 of the Companies Act, 1956. Consolidated financial statements As prescribed by the Accounting Standards-21 issued by the Institute of Chartered Accountants of India, the audited consolidated financial statements are annexed. Auditors M/s. Pinnamaneni & Co., Chartered Accountants, statutory auditors of the Company retires at the conclusion of the ensuing Annual General Meeting, and has expressed their willingness to accept re- appointment. INFORMATION REQUIRED UNDER SECTION 217(1) (E) OF THE COMPANIES ACT 1956 READ WITH THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988. Conservation of energy: The Companys operations require electrical energy for air conditioning the premises, supplying power to computer systems and lighting, which are not energy intensive. However, adequate measures have been taken to reduce energy consumption, wherever possible. Research and Development and Technology Absorption Your Company will continue to focus in its R&D activities in true colour LED display and LED lighting solutions. The stat-of-the-technology of the Company helps it to produce world class products and solutions. Continuous exposure to new technology helps the employees in maintaining high level of motivation leading to an increased level productivity, efficiency and quality. Due importance is given to research and technology by the Company in order to maintain its leadership in the field of cutting edge technologies. Foreign exchange earnings and outgo Earnings: Rs. 5,14,73,914 Outgo: Rs. 55,01,70,795 Personnel Particulars of employees as required under Section 217(2A) of the Companies Act, 1956, and the Companies (Particulars of Employees) Rules, 1975, as amended forms a part of this report. However, in pursuance to Section 219(1) (b) (iv) of the Companies Act, 1956, this report is being sent to all the Company shareholders, excluding the aforesaid information and the said particulars are made available at the Companys registered office. The members interested in obtaining information under Section 217(2A) may write to the Company Secretary at its registered office. Details about MIC Electronics Ltd Employees Stock Options Plan, 2006 (MIC ESOP, 2006) At the extraordinary general meeting held on 12th August 2006, the shareholders approved to issue 4500000 (Face Value Rs.2/-) stock options of the Company to its employees. Pursuant to the provisions of Guideline 12 of the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee stock purchase Scheme), Guidelines, 1999, the details of stock options as on 19th November 2008 under the MIC Electronics Ltd Employees Stock Options Plan, 2006 are as under: Sl. No Description Details 1 Options granted 4500000 2 Pricing : The exercise price for conversion of each option to one equity share is Rs. 3, if the face value of each share is Rs. 2 at the time of exercise. 3 Options vested 4500000 4 Options exercised 3121030 5 The total number of shares arising as a result of exercise of option 3121030 6 Options lapsed 694090 7 Variation of terms of options : The terms of options were not varied in the financial year 2007-08 8 Money realised by exercise of options Rs. 93,63,090 9 Total number of options in force 684880 10 Employee-wise details of options granted to i) Senior Management Personnel Details furnished below ii) Any other employee who receives a grant in any one year of option Nil amounting to 5% or more of option granted during that year iii) Identified employees who were granted option, during any one-year, Nil equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the Company at the time of grant. 11 Disclosure regarding employee compensation cost : The employee compensation cost on account of ESOP in 2007-08 is nil as no options were exercised. List of Senior Managerial Personnel and the options granted till 30th June 2008 Sl.No Name Options granted till Options outstanding 30th June 2008 as on 30th June 2008 1 L. N. Malleswara Rao 21500 Nil 2 U. Ramakrishna 30000 Nil The Company had established MIC Electronics Ltd Employees Welfare Trust in 2005 to create Employee Stock Option Plan. On 12th August 2006, the Shareholders approved that ESOP is to be implemented through the trust. Appreciation Your Directors place on record their sincere appreciation for the significant contribution made by the employees through their dedication, hard work and commitment and the trust reposed on us by investors in general. We also acknowledge the support and counsel extended to us by the analysts, bankers, government agencies, shareholders and investors at large during the year under review and look forward to their continued support over the foreseeable future. For and on behalf of the Board Sd/- Sd/- Place: Hyderabad Dr. M.V. Ramana Rao Shri L. N. Malleswara Rao Chairman & Managing Executive Director Director Date : 19th November 2008

Director’s Report