Your Directors are pleased to present the Thirty Ninth Annual Report on the operationsof the Company together with audited Accounts for the year ended 31 st March, 2013.
|FINANCIAL RESULTS || ||Amount (Rs. in lacs) |
| ||Year Ended 31 st March, 2013 ||Year Ended 31st March, 2012 |
|Revenue from operation (Net of Excise) ||7,937.99 ||7,152.53 |
|Other Income ||138.63 ||272.08 |
|Profit before Taxation ||56.27 ||116.94 |
|Provision for Taxation ||10.72 ||23.40 |
|Profit after Tax ||45.55 ||93.54 |
|Earning per Share of Rs. 10 each ||0.70 ||1.43 |
During the financial year 2012-13 sales of manufactured goods (Net of Excise)registered an increase of 6% over that of the 2011 -12. While Visakhapatnam Plantcontributed 47% of the total volume of manufactured goods, share of Uluberia and Kalyaniwas 47% and 6% respectively. Profit for the year declined due to massive increase of costof power, finance cost and material consumption.
In view of inadequacy of profit, Board of Directors has not recommended any dividendfor the year ended 31st March, 2013.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors, based on therepresentations received from the operating management, confirm :
1. That in the preparation of the annual accounts, the applicable accounting standardshave been followed and there have been no material departure.
2. That the Directors have selected such accounting policies and applied themconsistently and made judgements and estimates that are reasonable and prudent so as togive true and fair view of the state of affairs of the Company as at the financial yearended on 31st March, 2013.
3. That the Directors have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of the Companies Act, 1956for safeguarding the assets of the Company and for preventing and detecting fraud andother irregularities.
4. That the Annual Accounts have been prepared on a going concern basis.
PARTICULARS OF EMPLOYEES
Your Company has not paid any remuneration attracting the provisions of the Companies(Particulars of Employee) Rules 1975 read with Section 217(2A) of the Companies Act, 1956.Hence, no information is required to be appended to this report in this regard.
In accordance with provisions of Companies Act, 1956 read with Articles of Associationof your Company, Dr. Ranesh Bhowmick and Shri Ajit Khandelwal retire by rotation and beingeligible, offer themselves for re-appointment. A brief resume / details relating to Dr.Ranesh Bhowmick & Shri Ajit Khandelwal are furnished in the notice of the ensuringAnnual General Meeting.
AUDITORS AND AUDITORS REPORT
M/s. A. K. Kumar & Co., Chartered Accountants, the retiring Auditors have furnishedto the Company the required certificate under Section 224(1 B) of the Companies Act 1956and are therefore eligible for reappointment as Auditors of the Company.
As regards Auditor's comment on non-compliance of AS-22 relating to deferred Taxprescribed by the Institute of Chartered Accountants of India, the Board considers itprudent to set off net cumulative deferred Tax liability of Rs. 5 Crores against deferredTax on cumulative carry forward loss of Rs. 16.89 Crores as per Income Tax Return upto theAssessment Year 2012-13 keeping in view of anticipated growth of revenue and Taxableprofit in future assessment years.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
a) Increase in the installation of capacitors at Uluberia and Visakhapatnam Plant hasreduced significantly power consumption per c.u.m. of liquid production.
b) Continuous effort is made for conservation of energy through production planning,Inventory management etc.
c) Foreign Exchange Earning : Rs. 1,56,60,974/- on FOB Basis.
d) Foreign Exchange Expenditure : Rs. 4,00,94,494/-
As per the requirements of Clause 49 of the listing agreement on Code of CorporateGovernance, the certification made in the prescribed format in respect of the FinancialStatements and Cash Flow Statements for the financial year ended 31 st March, 2013 isannexed herewith as Annexure 'A'.
MANAGEMENT DISCUSSION AND ANALYSIS
As stipulated under Clause 49 of the listing Agreement with the Stock Exchange, it ispresented in a separate Section as Annexure - B.
CORPORATE GOVERNANCE REPORT FOR THE YEAR
Corporate Governance is set out as annexure for the report.
Your Directors would like to express their appreciation for the assistance andco-operation received from the financial institutions, Banks, Government Authorities,Customers, Vendors and members during the year under review. Your Directors also wish toacknowledge the dedication and commitment of employees at all levels.
| ||For and on behalf of the Board of Directors |
|Kolkata-700 016 ||S. P. AGARWALA |
|Dated: 5th day of September, 2013 ||Chairman |
ANNEXURE - 'A' TO THE DIRECTORS' REPORT
The Board of Directors
ELLENBARRIE INDUSTRIAL GASES LTD.
3A, Ripon Street
MD / CFO Certification
(a) We have reviewed financial statements and the Cash Flow Statement for the year andthat to the best of our knowledge and belief:
(i) These statements do not contain any materially unfair statement or any materialfact or statements that might be misleading.
(ii) These statements together present a true and fair view of the Company's affairsand are in compliance with existing accounting standards, applicable laws and regulations.
(b) There are, to the best of our knowledge and belief, no transactions entered into bythe company during the year which are fraudulent, illegal or violative of the company'scode of conduct.
(c) We accept responsibility for establishing and maintaining internal control and thatwe have evaluated the effectiveness of the Internal Control Systems of the Company andhave disclosed to the Auditors and the Audit Committee deficiencies in the design oroperation of Internal Controls, if any, of which we are aware and the steps we have takenor propose to take to rectify these deficiencies.
(d) We have indicated to the Auditors and the Audit Committee :
(i) Significant changes in internal control during the year.
(ii) Significant changes in accounting policies during the year and that the same havebeen disclosed in the notes to the financial statements and
(iii) There are no instances of significant fraud of which we have become aware and theinvolvement therein if any of the management or an employee having a significant role inthe Company's internal control system, if any.