To the Members
Your Directors' hereby present the Fiftieth Annual Report together with the AuditedAccounts of the Comoany for the year ended March 31, 2013.
FINANCIAL RESULTS :
|Particulars || |
(Rs. in Lacs)
| ||Year ended on March 31, 2013 ||Year ended on March 31,2012 |
|Sales ||1,754.95 ||709.23 |
|Other Income (including non-recurring income) ||2.76 || |
|Gross Profit/(Loss) before Interest & Depreciation ||834.76 ||(213.05) |
|Less: Depreciation ||22.62 ||6.20 |
|Financial Charges ||191.99 ||145.39 |
|ProfiV(Loss) from Continuing operations ||620.14 ||(364.64) |
|(Loss)/Profit from Discontinuing operations ||(115.34) ||623.72 |
|Profits/(Loss) before Tax ||504.80 ||259.08 |
|Less : Provision for Tax (including earlier years and Deferred Tax) ||21.81 ||(22.57) |
|Profit /(Loss) after Tax ||482.99 ||281.65 |
|Surplus/(Loss) brought forward ||(18,866.63) ||(19,148.28) |
|Surplus/(Loss) carried to Balance Sheet ||(18,383.64) ||(18,866.63) |
REVIEW OF OPERATIONS :
During the year, the Company's activity focused on the sales, marketing and technicalsupport of Cabot Corporation's Carbon Black and Masterbatch product lines for the Indiamarket. The Company continued to import both product lines from overseas affiliates toservice some key segments of the market. In addition to the aforementioned product lines,the Company consolidated activities associated with the sales, marketing and technicalsupport of Cabot Corporation's Activated Carbon product line, a business Cabot acquired inAugust of 2012.
The country continues to maintain strong market segments that value high quality CarbonBlack and Masterbatch products. These segments include IR inks and plastics. The recentlyconsolidated Activated Carbon product line serves a variety of market segments, whichinclude water & air purification, food & beverage and pharmaceuticals.
FUTURE OUTLOOK :
The Company expects competition in the market to remain intense with demand continuingto be strong in each of the market segments served. The addition of the Activated Carbonproduct line has diversified end application markets and provides the Company with abroader offering of high quality specialty chemical products.
The Company believes it will continue to build on its capabilities to best serveCustomers in the India market providing the highest levels of service and differentiatedspecialty chemicals.
Considering the accumulated losses of the earlier years of the Company, no dividend isrecommended for the financial year ended on March 31, 2013.
As on date, Cabot Corporation, USA through its subsidiary companies owns 97.80 % of thepaid up capital of the Company.
During the period under review, Mr. Dave Miller has resigned from the Directorship ofthe Company with effect from October 23, 2012. The Board appreciates the services renderedby the Director during the tenure of office as a Director of the Company.
During the year, Mr. Fei Deng was appointed as an additional director w.e.f. October26, 2012. He holds office up to the date of forth coming Annual General Meeting. TheCompany has received a notice from a member under Section 257 of the Companies Act, 1956along with requisite amount of Rs. 500/- proposing the candidature Mr. Fei Deng asdirector of the Company liable to retire by rotation. Mr. Fei Deng is eligible forappointment.
In accordance with the Articles of Association of the Company and in view of theprovisions of Section 255 of the Companies Act, 1956, Mr. Aled Rees, Director of theCompany, will retire by rotation at the ensuing Annual General Meeting and being eligibleseeks re-appointment.
AUDIT COMMITTEE :
The Audit Committee assists the Board in its responsibility for overseeing the qualityof the accounting, auditing and reporting practices of the Company and its complianceswith the legal and regulatory requirements. In particular it performs the followingfunctions:
Overseeing of the Company's financial reporting process and disclosure offinancial information and financial risk management policies.
Review of financial statements ensuring compliance with regulatory guidelinesbefore submission to the Board of Directors.
Review of adequacy of internal control systems and discussions of significantinternal audit findings including internal control and weakness, if any.
Recommend appointment, removal of statutory auditors and payment of fees to themand appointment of CFO/ whole-time Finance Director.
Review areas of operation of internal audit team and their performance.
Review the statement of significant related party transactions.
Present composition of the committee:
|Sr. No. ||Name of the member ||Position |
|1. ||Mr. C. R. Dua ||Member |
|2. ||Mr. Aled Rees ||Member |
|3. ||Mr. Nirmalya Maity ||Member |
DIRECTORS' RESPONSIBILITY STATEMENT ;
In compliance of Section 217(2AA) of the Companies Act, 1956, as amended by theCompanies (Amendment) Act, 2000, the Directors of the Company confirm that:
the applicable accounting standards have been followed in the preparation offinal accounts and that there are no material departures;
such accounting policies have been selected and applied consistently and suchjudgments and estimates made are reasonable and prudent so as to give a true and fair viewof the state of affairs of the Company as at March 31, 2013 and the Profit of the Companyfor the year ended on that date;
proper and sufficient care has been taken for the maintenance of adequateaccounting records in accordance with the provision of the Companies Act, for safeguardingthe assets of the Company and for preventing and detecting fraud and other irregularities;
the accounts have been prepared on a going concern basis.
FIXED DEPOSIT ;
The Company has not accepted/renewed Fixed Deposits during the year under review.
SAFETY. HEALTH & ENVIRONMENT :
Safety, Health and Environmental is of the highest importance to the Company and is atthe centre of every day operations. The Cabot Safety Health and Environmental Standardsare applicable across Cabot facilities worldwide and its S H & E program covers allemployees and contractors working at every site. Cabot India Ltd.'s operationssuccessfully transitioned to the new office location part way through the fiscal yearwithout record of a safety or environmental incident.
M/s. Deloitte, Haskins & Sells, Chartered Accountants, Mumbai, retire at theensuing Annual General Meeting and being eligible offer themselves for re-appointment.They have submitted a certificate of their eligibility for reappointment under section 224(1-B) of the Companies Act, 1956 and they are not disqualified under amended section226(3) (e) of the said Act.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO;
Information under Section 217 (1) (e) of the Companies Act 1956, read with theCompanies (Disclosure of particulars in the Report of the Board of Directors) Rule, 1988for the period ended March 31, 2013.
(A) Conservation of Energy:
The Company is taking various initiatives to reduce the consumption of energy, such asuse of energy saving equipments etc. Company is constantly engaged in interaction withexternal agencies/partners for exposure to latest products/designs, techniques, processesetc.
(B) Research & Development:
Your Company has undertaken certain measures to undertake the research and developmentactivities that are essential to nature of business of the Company.
(C) Technology Absorption:
Your Company has embarked on steps under a predefined strategy for technologicalabsorption for the development of business of Company.
(D) Foreign Exchange Earnings & Outgo:
|Particulars ||For the year ended on 31 st March, 2013 ||For the year ended on 31st March, 2012 |
| ||(Amount in Rs.) ||(Amount in Rs.) |
|Earnings in Foreign Currency ||15,99,05,453 ||9,92,20,677 |
|Expenditure in Foreign Currency ||. 3,90,016 ||25,06,851 |
HUMAN RESOURCE AND PARTICULARS OF EMPLOYEES :
The human resource philosophy and strategy of your Company has been designed to attractand retain the best talent on offer. In practice it creates and nurtures work placechallenges that keep employees engaged, motivated and innovative.
The Company has not paid any remuneration attracting the provisions of the Companies(Particulars of Employees) Rules, 1975 read with section 217(2A) of the Companies Act,1956. Hence, no information is required to be appended in this regard.
Your Directors would like to express their appreciation for the assistance andco-operation received from the shareholders, customers, dealers, suppliers, banks,financial institutions, Government authorities, Export Promotion council, other semiGovernment authorities and business associates at all levels during the year under review.The Directors also wish to place on record their deep appreciation for the committedservices of the staff and executives of the Company.
| ||For and on behalf of the Board |
| ||C. R. Dua ||Director |
| ||Aled Rees ||Director |
|Place : Navi Mumbai || || |
|Date : September 24, 2013 || || |