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Shree Ganesh Forgings Ltd.

BSE Live

Oct 14, 16:00
0.36 -0.01 (-2.70%)
Volume
AVERAGE VOLUME
5-Day
1,190
10-Day
870
30-Day
719
5,250
  • Prev. Close

    0.37

  • Open Price

    0.38

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Oct 29, 15:40
1.00 0.00 (0.00%)
Volume
AVERAGE VOLUME
5-Day
83
10-Day
468
30-Day
233
0
  • Prev. Close

    1.00

  • Open Price

    0.00

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    1.00 (844)

Annual Report

For Year :
2014 2013 2012 2011 2010 2009 2008 2007

Director’s Report

Dear Members, The Directors present herewith the 41st Annual Report and the Audited Statement of Accounts of the company for period from 1st April, 2013 to 31st March, 2014. Financial Highlights PARTICULARS FOR THE (IN LACS) PERIOD ENDED 2012-2013 2013-2014 Operational Income 3.26 214.56 Other Income 361.92 23.33 Total Expenditure 521.51 2357.15 (excluding interest) Interest - 9.99 Loss before Tax (127.02) (2119.26) Deferred Tax 77.81 79.25 Loss after tax (49.21) (2040.01) Dividend The Board does not recommend any dividend for the period under review. Operations During the period under review, the turnover of the Company was Rs. 3.26 Lac in comparison to Rs. 214.56 Lac of previous year mainly on account of partial closure of the production facilities due to lack of availability of working capital funds and persistent labour problems. The company has been mainly servicing customers whose requirements matched the company''s stock of semi- finished and finished goods entirely or partially. In several cases, semi-finished and finished goods have been re-worked to meet the current customers'' requirements. Members are aware that the company had filed a reference under section 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 due to erosion of its net worth. As of 31st March, 2014, the net worth remains negative in view of the accumulated loss . Meanwhile, our accounts with the banks were designated as Non- Performing Asset (NPA) by the bankers and in May, 2011 the bankers initiated recovery action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The Company is taking all requisite measures to ensure that the outstanding dues to the bankers is settled and has already given its proposal for one-time settlement with the bankers. State Bank of India, which became our lead bank after the merger of State Bank of Indore with it in August 2010, also sent us a possession notice in October, 2011 against which the company has already filed an application with the Debt Recovery Tribunal. The management is making constant endeavors to move on with discussions with the bankers so as to arrive at a mutually acceptable proposal. The management is also evaluating various options with respect to raising the funds required for settling the banks'' dues, including selling or leasing the land on which the factory is situated and shifting the operations to an alternate site. As of date, the management is seriously considering a couple of proposals, although a structured outcome is yet to emerge. Directors In accordance with the provisions of the Articles of Association of the Company, Mrs. Anita Sekhri, retires by rotation at the forthcoming Annual General Meeting and being eligible, offer herself for reappointment. The Board recommends her re-appointment. Statutory Auditors The Auditor M/s. Batliboi & Purohit, Chartered Accountants (Firm Registration No. 101048W), who are the statutory auditors of the Company, hold office till the conclusion of the forthcoming AGM and are eligible for re-appointment. Pursuant to the provisions of section 139 of the Companies Act, 2013 and the Rules framed thereunder, it is proposed to appoint M/s. Batliboi & Purohit, Chartered Accountants (Firm Registration No. 101048W) as statutory auditors of the Company from the conclusion of the forthcoming AGM till the conclusion of the Forty Third AGM to be held in the year 2016, subject to ratification of their appointment at every AGM. The Board of Directors has recommended their re-appointment as auditors. The written consent from the Auditor has been received along with a certificate that their appointment if made, shall be in accordance with the prescribed conditions and the said auditors satisfy the criteria provided in Section 141 of the Act. Public Deposits The Company has not invited and/ or accepted any deposits within the meaning of Section 58 A of the Companies Act, 1956, read with the Companies (Acceptance of Deposits) Rules, 1975 made thereunder. Directors'' Responsibility Statement Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956 with respect to Directors'' Responsibility Statement, it is hereby confirmed that: a) In the preparation of the Annual Accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures; b) the accounting policies have been selected and applied consistently and all judgments and estimates made are reasonable and prudent, so as to give a fair view of the state of affairs of the Company as at 31st March, 2014 and of the loss for that period ; 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 fraud and other irregularities ; d) the annual accounts have been prepared on a going -concern basis. Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo The information required in terms of 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 is given as Annexure A to this Report. Subsidiary Company The statement pursuant to Section 212 of the Companies Act, 1956 in respect of the Company''s subsidiary viz. SGFL International BV is attached as Annexure B to this Report. The subsidiary was constrained to sell off its investments in view of the fall in global demand and due to serious operational problems. The consolidated financial statements of the Company and its subsidiary forms part of the Annual Report. Pursuant to the General Circular no.2/2011 dated February 8, 2011 issued by the Ministry of Corporate Affairs , the Board has given consent for not attaching the Balance Sheet, the Profit and Loss Account and other documents as set out in section 212 (1) of the Companies Act, 1956, in respect of the subsidiary. However, these documents are available for inspection by any member at the Registered Office of the Company, during working hours upto the date of the Annual General Meeting. Copies of these documents shall also be made available to any member of the company upon request. Particulars of Employees There are no employees drawing remuneration in excess of the limits specified in section 217(2A) of the Companies Act, 1956. Industrial Relations The company was constrained to lay off few employees in view of partial closure of operations consequent to which they had moved the Industrial Court, Thane for payment of closure compensation. The company has been taking efforts to ensure peaceful severance of service and amicable settlement of the dues of the employees concerned. In reciprocation, some of the employees have accepted the company''s proposal and their dues have been settled. However ,the Industrial Court, Thane ,has restrained the company from shifting, selling, parting with or creating third party interest in respect of its plant, machinery , land, building or any immovable property. Management Discussion & Analysis Report and Report on Corporate Governance Pursuant to Clause 49 of the Listing Agreement, the Management Discussion & Analysis Report, the Report on Corporate Governance and the certificate in respect of compliance of requirements of Corporate Governance are annexed to this Report and form part of this Annual Report. Acknowledgement Your Directors express their grateful appreciation to the company''s valued customers, suppliers, investors and bankers for their continued support, assistance, co-operation and guidance. Your directors also thank all the employees and executives for their contribution and look forward to their continued support in the future too. Date: 25.11.2014 By order of the Board Place: Mumbai For Shree Ganesh Forgings Limited Registered Office: Sd/- 412, Emca House, Deepak B. Sekhri S.B.S. Road, Fort, Chairman & Managing Director Mumbai-400 001 DIN : 00054671

Director’s Report