Your Directors present the Fifty Fourth Annual Report on the business and operations ofthe Company together with the Audited Statement of Accounts for the financial year ended31st March, 2011.
PROFIT / LOSS AND APPROPRIATIONS
| || ||(Rs. In lacs) |
| ||Current Year ended 31.03.2011 ||Previous Year ended 31.03.2010 |
|Profit / (Loss) before Extraordinary items & tax ||2820 ||(3236) |
|Less /Add Extraordinary items ||(1247) ||- |
|Profit / (Loss) after Extraordinary items & before Tax ||1573 ||(3236) |
|Add : Provision for Taxation ||- ||- |
|Add / Less : Excess/(Short) provision of Income Tax of earlier years ||3 ||- |
|Profit / (Loss) for the year ||1576 ||(3236) |
|Balance loss brought forward from previous year ||(9552) ||(6316) |
| ||(7976) ||(9552) |
|Less Appropriated against General Reserve ||7019 ||7019 |
|Debit Balance in P& L Account carried to balance sheet ||957 ||2533 |
The Company achieved turnover of Rs 183.68 crores during the year under review from thecable business against the turnover of Rs.128.79 crores in the previous year, showing anIncrease of 43% during the year.
The Company also earned an income of Rs.5498 lacs (net) as its share of the income fromReal Estate Business.
During the year under review Industrial relations remained cordial.
In view of the carry forward losses, the Directors do not recommend any dividend onEquity Shares for the financial year 2010-11.
CURRENT YEAR'S OUTLOOK AND FUTURE PROSPECTS.
The demand for Power Cable continues to be good. Orders on hand are to the tune ofRs.200 crores. Margins remain under pressure due to excess supply, stiff competition andvolatile raw material prices.
It Is expected that the EHV Cable business shall grow positively with good margins andwe shall have the advantage of full capacity utilization in the coming years.
The Company has shifted a part of its HT lines of manufacture from Borivali to Nashikand the same has been commissioned during the year under review. The Company is upgradingand commissioning its second EHV line in the current year.
The Company is making efforts to focus on continuous cost reduction, improvement inproductivity and increase in performance. With the above initiatives the company isexpected to achieve leap in turnover, increase in revenue and better overall performance.
As stated in the last Annual report, the Company has commenced the development of itsland at Borivali, Mumbai. The Directors are also pleased to inform you that two phases ofthe project were successfully launched. Whilst outlook for the real estate market inMumbai is presently soft, the Company is confident of a good response due to a competitiveand attractive project.
Mr R Sridharan was appointed Director - Strategy & Business Development for aperiod of one year wef 1st June, 2010. It is proposed to reappoint him for a furtherperiod of one year on the same terms and conditions.
Mrs N H Khatau and Mr Rajiv Saxena retire by rotation at the ensuing Annual GeneralMeeting and being eligible offer themselves for reappointment.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956, theDirectors of your Company confirm:
(i) that in the preparation of the annual accounts, the applicable accounting standardshave been followed and there has been no material departure;
(ii) that they have selected such accounting policies and applied them consistently andmade judgements and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Company as at 31st March, 2010 and the Profit andLoss Account of the Company for the year ended on that date;
(iii) that they have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act, 1956 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities;
(iv) that they have prepared the annual accounts on a going concern basis.
Management Discussion and Analysis Report as required under the Listing Agreement withthe Stock Exchange and forming part of this Report is annexed.
A separate section titled "Corporate Governance" Is included in the AnnualReport and the Certificate from the Company's auditors regarding compliance of conditionsof the Corporate Governance as stipulated in Clause 49 of the Listing Agreement is annexedhereto and forms part of the report.
PARTICULARS OF EMPLOYEES AND OTHER ADDITIONAL INFORMATION
Information as per section 217(2A) of the Companies Act 1956 read with the Companies(Particulars of Employees) Rules, 1975 is not applicable to the Company as none of theemployees are drawing salary more than Rs.60 lacs per annum.
Conservation of Energy, technology absorption and foreign exchange earnings and outgoinformation as per 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 and formingpart of this Report is annexed herewith. (Annexure I)
The Auditors' M/s. Sorab S Engineer & Co., Chartered Accountants, hold office untilthe conclusion of the ensuing Annual General Meeting and t>eing eligible, offerthemselves for re-appointment. A Certificate from the Auditors has been received to theeffect that their re-appointment, if made, would be within the limits prescribed underSection 224(1 B) of the Companies Act, 1956.
The Auditors' Report to the shareholders do not contain any qualification The Notes tothe Accounts referred to in the Auditors' Report are self-explanatory and therefore do notcall for any further comments.
Your Directors desire to record their sincere appreciation to the FinancialInstitutions, Banks, Central and State Governments for their continued cooperation andsupport.
The Directors take this opportunity to acknowledge the dedicated efforts made by theworkers and officers at all levels towards the success achieved by the Company.
The Directors also convey their gratitude to all the Shareholders for their continuedsupport, especially in what has been another difficult year for the Company.
| ||On behalf of the Board of Directors |
|Mumbai, ||H. A. KHATAU |
|Dated: 31st May, 2011 ||CHAIRMAN & MANAGING DIRECTOR |
Annexure I to Directors' Report
Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988
A. CONSERVATION OF ENERGY
(a) Energy conservation measures taken:
- Rationalisation of Lighting in the Factory resulting in Energy Cost Saving.
- Capacitors have been put on individual machines for PF improvement.
(b) Additional investment and proposal:
- Conversion from DC motors to AC motors at continuous running machines
(c) Impact of various measures on cost of production:
- Energy conservation measures implemented has marginal effect on overall energy billsand cost of production.
(d) Total energy consumption and energy consumption per unit of production as per form'A' of the Annexure in respect of industries specified in the schedule. The requirement ofgiving details under this sub-head does not apply to the Company.
B TECHNICAL ABSORPTION
(a) Efforts made in technology absorption as per form 'B' are as under Form forDisclosure of Particulars with respect of absorption:
Research and Development
(i) Specific areas in which R & D is earned out by the Company:
Research and Development activities in areas of Cable Technology, development of newcable & accessories for Extra High Voltage cables are being carried out by theCompany.
(ii) Benefits derived as a result of the above R&D:
- Development of various cables & accessories catering to specific requirement forpower transmission at High Voltage & Extra High Voltage.
- Development of process technology related to extrusion, cross linking, resulting inelimination of high voltage failure & reduction in dimension of Extra high voltagecable.
- Development of Axially Water Tight Conductor of all sizes for HV & EHV Cables.
- Development of Segmental Conductor for 2500 sq.mm for EHV cable.
- Development of technology for manufacture of 400 kv XLPE cable,
(iii) Future plan of action:
- In future, R&D activities will be directed in reducing the material cost,in-process defects of cables and developing newer technologies suitable for emergingtrends.
|(iv) Expenditure on R & D: ||(Rs.in laks) |
|(a) Capital ||nil |
|(b) Recurring ||42.00 |
|(c) Total ||42.00 |
|(d) Total R&D expenditure as a percentage of the total turnover ||0.23 |
Technology Absorption, Adaptation and Innovation:
(I) Efforts In brief made towards technology absorption, adaptation and Innovation.
(ii) Benefits derived as a result of the above.
|Development Related: ||Benefits Derived |
|(i) Development of various cables catering to specific requirements of power transmission at HV & EHV ||Product Development |
|(ii) Rationalization in process technology related to EHV cable manufacture. ||Process Technology |
|(iii) Development of curative system to suit specific application and process. ||Product Development |
|Manufacturing related: || |
|Development & Implementation of Process for Manufacture of LT & HT Cables in elimination of Voltage Failure during manufacture. ||Process Development |
|Manufacturing of Segmental Conductor for higher sizes of Conductors for EHV cables. ||Process Development |
|Energy Savings: || |
|Use of Capacitors at all the Plants has ensured that Power factor is kept above 0.95 which has resulted in savings in electricity bills. ||Decreased Power Cost |
|In case of imported technology (imported during the last 5 years reckoned from the beginning of the financial year. ||Not applicable |
C. FOREIGN EXCHANGE EARNINGS AND OUTGO