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Modern Insulators Ltd.

BSE: 515008 | NSE: MODINSULAT | Series: NA | ISIN: | SECTOR: Electric Equipment

BSE Live

Sep 21, 15:57
62.60 -1.15 (-1.80%)
Volume
AVERAGE VOLUME
5-Day
47,574
10-Day
105,090
30-Day
45,773
24,176
  • Prev. Close

    63.75

  • Open Price

    62.05

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    63.35 (210)

NSE Live

Dec 27, 11:22
4.15 -0.35 (-7.78%)
Volume
No Data Available
19,578
  • Prev. Close

    4.50

  • Open Price

    -

  • Bid Price (Qty.)

    - (0)

  • Offer Price (Qty.)

    - (0)

Modern Insulators is not listed on NSE

Annual Report

For Year :
2014 2013 2012 2011 2009 2008 2006

Director’s Report

The Members, The Directors have pleasure in presenting Annual Report and audited accounts for the year ended on 31st March, 2014. 1, FINANCIAL RESULTS (Rs. in crores) Year ended Year ended 31.03,2014 31.03.2013 Profit before exceptional items and tax 26.12 20.76 Less: Exceptional items 10.40 - Profit before tax 15.72 20.76 Less: Tax expense (Deferred Tax) 1.65 (0.38) Profit for the year after tax 14.07 21.14 2. OPERATIONS The overall performance of the Company has been satisfactory inspite of challenging business environment. The net turnover for the year has been Rs. 459.33 crores as against Rs. 391.62 crores in previous year and net profit before exceptional items and tax Rs. 26.12 crores for the year as against Rs. 20.76 crores in previous year showing growth of 17% and 26% respectively. Keeping in view the need to conserve the Company''s resources for meeting the enhanced working capital requirement and balancing the manufacturing equipments, your directors deemed it prudent not to recommend any dividend for the year. INSULATORS DIVISION The division has achieved a net turnover of Rs. 273.91 crores during the year and profit before interest & depreciation of Rs. 37.75 crores as against Rs. 242,66 crores and Rs. 36.11 crores respectively of previous year. Performance of this division could be sustained due to benefit of safeguard duty imposed last year which was effective till 31st Dec. 2013. Company''s vision to broaden the scope, of manufacturing of all kinds of extra high voltage insulators for electrical equipments has borne the fruits witnessed by the performance of the company during the year under review. YARN DIVISION This division has achieved a net turnover of Rs. 185.42 crores and profit before interest & depreciation ofRs. 8.20 crores as against Rs. 148.96 crores and Rs. 5.39 crores respectively of previous year mainly due to pick up in demand. 3. EXPERTS The company is one of the major exporter of H.T. Porcelain Insulators from India. The Company''s sustained efforts in exporting its products as well as favourable exchange rates resulted in achieving higher export turnover of Rs. 79 crores during the year under review as compared to Rs. 76 crores in previous year inspite of stiff competition with the globally giant players (particularly Chinese) in Insulator Industry and deferment of delivery schedule by the overseas customers. The company possesses ability to cater to diverse needs of global customers and further concentrating to strengthen its presence in all comers of global market. This would help company in getting optimum utilization of its productive resources. Your company is a regular supplier to all the major multinational OEMs for their world wide requirements of quality porcelain insulators. The company is also focusing to save cost effectively with R&D activities and better process control so that products of the insulator division remain competitive in terms of quality and price in the international market. 4. FUTURE PROSPECTS Your Company continuous to be a leader in the manufacture of High Voltage Insulators in the Country. Despite stiff competition from other countries, international buyers show interest to your company''s product for its quality & timely delivery and hence your directors are confident of achieving better working results in the coming years. Your Company is having well equipped R&D laboratory recognized by Govt, of India, Ministry of Science & Technology which takes care of the stringent quality requirements of customers and ensure quality and reliability in each and every product manufactured. In-house R&D activities have a thrust on development to replace expensive input raw material & to further bring consistency in quality of the products under manufacture. The future of insulator industry looks promising due to major thrust on power sector reforms and speedier implementation of new power projects. The Government of India has given emphasis on upgrading transmission system in the country along with plans for construction of new power transmission girds. PGCIL is looking to connect the Northern & Southern grid shortly. Also industry is pursuing the govt, for imposition of Anti dumping duty against cheaper Chinese imports as safeguard duty was effective till 31st December 2013. In view of this & looking to the present scenario in power sector, the business prospects for Insulator Industry in general and for your Company in particular are encouraging. In order to diversify its business, your company is expanding capacity of foundry which at present is partly fulfilling company''s captive requirement of SGI and Aluminium Castings. Company is targeting variety of markets including auto components. This will further boost revenue of the company. 5. AMALGAMATION OF MODERN TERRY TOWELS LIMITED WITH THE COMPANY As desired by the Hon''ble BIFR, Modern Terry Towels Limited has filed revised DRS with them for its amalgamation with your company by taking deemed date of amalgamation as 01.01.2008 (as envisaged in original scheme). The same is under consideration for circulation and thereafter for sanction by Hon''ble BIFR. 6. DEMERGER OF YARN DIVISION OF THE COMPANY As reported earlier, a scheme of Demerger under section 391 to 394 of the Companies Act, 1956 has been filed before the Hon''ble High Court of Rajasthan at Jaipur to demerge the Yam Division of the Company which is under consideration for approval of Hon''ble High Court. The demerger would result in benefit to the shareholders, creditors, employees and general public. . 7. SUBSIDIARY COMPANY The statement under Section 212 of the Companies Act, 1956 in respect of Motile Power Trade Pvt. Ltd., subsidiary of the Company along with audited accounts is attached. 8. DIRECTORS Shri Sachin Ranka has been appointed as Chairman & Managing Director of the Company with effect from 01.04.2014 for a period of three years by the Board of Directors of the Company. Shri D.B. Deshpande, Director is liable to retire by rotation at the ensuing Annual General Meeting and being eligible, offers himself for re-appointment. In compliance with the provision of Section 149 and other applicable provisions of the Companies Act, 2013, Shri R. Raniwala and Shri S.B.L. Jain, Directors of the Company are proposed to be appointed as Independent Directors of the Company for five consecutive years for a tenn upto March 31, 2019. Appropriate resolutions for the appointment/re-appointment of the aforesaid Directors are being moved at the ensuing Annual General Meeting, which the Board recommends for your approval. 9. AUDITORS M/s B.L. Verma & Co., Chartered Accountants (Formerly known as S.S. Kothari & Co., Chartered Accountants), statutory auditors of the Company retires at the forthcoming Annual General Meeting. Your Directors recommend their re-appointment to audit the accounts of the Company. As required under the provision of the Section 139 of the Companies Act, 2013 the company has obtauied written confirmation from M/s B.L. Verma & Co., Chartered Accountants, that their re-appointment, if made, would be in conformity with the limits specified in the said section. The observations made by the Auditors are self explanatory and have been dealt with in the notes forming part of the financial statements and hence need no further clarifications. 10. INDUSTRIAL RELATIONS & PARTICULARS OF EMPLOYEES Your Directors sincerely appreciate the workers, staff and officers for putting in their best efforts. The Company has enjoyed healthy and cordial industrial relations throughout the year under review. There is no employee getting remuneration as prescribed under Section 217 (2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 as amended. 11. DIRECTORS1 RESPONSIBILITY STATEMENT Pursuant to sub-section (2AA) of Section 217 of the Companies Act, 1956, the Board of Directors of the Company hereby state and confirm that:- i) in the preparation of the Annual Accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures; ii) the Directors 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 and of the profit or loss of the Company for the year under review; iii) 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 irregularities and; iv) the annual accounts have been prepared on a going concern basis. 12. PARTICULARS OF ENERGY CONSERVATION. TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO The statement of particulars relating to energy conservation, technology absorption and foreign exchange earnings and outgo as required in accordance with Section 217 (1) (e) of the Companies Act, 1956 read with Rule 2 (A), 2 (B) and 2 (C) of the Companies (Disclosures of particulars in the report of Board of Directors) Rules, 1988 is annexed hereto and forms part of this report. 13. CQNSTITUTION OF AUDIT COMMIITTEE The Board of Directors has constituted the Audit Committee of Directors to exercise powers and discharge functions as stipulated in section 177 of the Companies Act, 2013. The present Audit Committee consists of member directors as follows:- Shri R. Raniwala (Independent Director) - Chairman Shri S.B.L. Jain (Independent Director) Shri H.L. Sharma (Executive Director) -ACKNOWLEDGEMENTS Your Directors wish to place on record their deep sense of appreciation for all the stake holders of the Company who has been continuously supporting the growth of your Company. In particular, the Directors value the dedication and commitment of your Company''s employees and thank the Financial Institutions, Banks, Government Authorities, customers, vendors, shareholders and Central as well as State Governments for their continued cooperation and support. ON BEHALF OF THE BOARD Place : Jaipur (SACHIN RANKA) Dated : 19th June, 2014 Chairman & Managing Director

Director’s Report