DIRECTORSYour Directors are pleased to present the Twenty Sixth Annual Report and the AuditedAccounts for the year ended 31st March, 2011.
1. Financial Results
| | (Rs. in Lakhs) |
| Year ended 31.03.2011 | Year ended 31.03.2010 |
| Profit before Finance charges and Depreciation | 147.60 | 138.78 |
| Finance Charges | 25.41 | 23.11 |
| Depreciation | 71.86 | 69.01 |
| Prior Period Adjustment | - | (106.46) |
| Provision for Tax: | | |
| - Current | (23.00) | (21.00) |
| - Deferred | 15.21 | 10.79 |
| Profit after Tax | 42.54 | (70.01) |
| Adjustment for Tax of earlier year | 1.79 | - |
| Surplus Brought forward | 370.43 | 440.44 |
| Surplus carried forward | 411.18 | 370.43 |
2. Performance & Prospects:
During the year under review, the Company has successfully achieved the maximumproduction capacity. The Company products are at great demand in overseas and domesticmarkets. Efforts are being made to capture overseas market to the maximum as the demand isincreasing every year. This year, the turnover of the Company has comparatively increasedwith the demand of its products in overseas and domestic markets. The Company foreseesbetter turnover in the coming years.
The Company is in the process for obtaining Certificate of ISO-14001 and OSHAS-18000ISOOHAS.
During the year under review the Company could achieve net profit of Rs. 147.60 Lacs asagainst Rs.138.78 Lacs during the previous year 2009-10. Due to fluctuation in the pricesof basic Raw Materials, there is slim increase in the net profit of the Company in thecurrent year.
3. Dividend: During the financial year 201011 your Board of Directors could notrecommend any dividend due to absence of distributable profit.
4. Directors: Shri Kishore Jhunjhunwala, Director, retires by rotation and beingeligible, offers himself for re-appointment.
5. Directors' Responsibility: Pursuant to Section 217(2AA) of the Companies Act,2000 the Directors confirm that:
i. In the preparation of the Annual Accounts, the applicable accounting standards havebeen followed along with proper explanation relating to material departures;
ii. Appropriate accounting policies have been selected and applied consistently, andhave made judgments 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 March 31, 2011 and of the profit ofthe company for the said period;
iii. Proper and sufficient care has been taken 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. The Annual Accounts have been prepared on a going concern basis.
6. Auditors: M/s. Laxminiwas & Jain, Auditors of the Company, retire at theensuing Annual General Meeting and are eligible for re-appointment.
7. Personnel: Employee relations at all levels were cordial during the year.Your Directors place on record their appreciation of the dedicated work put-in by theemployees.
8. During the year under review there are no employees in the Company whose particularsare required to be given pursuant to Section 217(2AA) of the Companies Act, 1956.
9. Acknowledgement: The Board of Directors are very thankful to the State Bankof Hyderabad and other Government Agencies for their continued help, guidance andassistance in the functioning of the Company.
10. Your Directors express their gratitude to the shareholders for the confidencereposed in the Company.
11. Information on Energy Conservation and Technology Absorption required to bedisclosed under Section 217(1)(e) of the Companies Act, 1956 read with the Companies(Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988, formingpart of the Directors' Report for the year ended 31st March 2011, is enclosedas Annexure to this Report.
For and on behalf of the Board
Vinod Baid
Chairman
Place: Hyderabad
Date :31st August, 2011
ANNEXURE TO THE DIRECTORS' REPORT
Information under Section 217(1)(e) of the Companies Act, 1956 read with the Companies(Disclosure of Particulars in the report of the Board of Directors) Rules, 1988
Conservation of Energy:
Assessment of individual equipment/utilities energy requirement (Electricity/Steam) hasbeen done and standard benchmarks have been established. Awareness among the staff andplant workers has been created to have a constant monitor on usage of energy and tooptimize throughout and to avoid wastage and unproductive usage of energy.
Pollution Control:
The Company is a member of the Common Effluent Plant of M/s. Pattancheru EnvirotechLimited and M/s. Progressive Effluent Treatment Limited, Bollaram. As per the orders ofSupreme Court, implementation of the pre-treatment of effluent as per the directions ofCentral Pollution Control Board is already under strict implementation.
FORM 'A'
Disclosure of particulars with respect to Conservation of Energy (to the extentapplicable)
| 2010-2011 | 2009-2010 |
| A. POWER & FUEL CONSUMPTION | | |
| 1. ELECTRICITY | | |
| a. Purchased Units (KWH in Lacs) | 9.04 | 6.59 |
| Total amount (Rs. In Lacs) | 40.59 | 27.11 |
| Rate/Unit (Rs./KWH) | 4.49 | 4.11 |
| b. Owned Generation | | |
| Through Diesel Generator Unit | 0.57 | 0.76 |
| (KWH in Lacs) | | |
| Total Amount (Rs. In Lacs) | 7.93 | 6.21 |
| Units per liter of Diesel Oil | 2.90 | 4.45 |
| Cost/Unit (Rs./KWH) | 13.91 | 8.17 |
| 2. COAL | | |
| Quality 'C' Grade in Steam Boiler | | |
| Quantity (Tonnes) | 579 | 708 |
| Total Cost (Rs. In Lacs) | 23.28 | 30.72 |
| Average rate/T (Rs.) | 4020 | 4339 |
| B. CONSUMPTION PER UNIT OF PRODUCTION: | | |
| Electricity & Diesel (KWH) | 1.82 | 1.89 |
| Coal (Kgs.) | 1.10 | 1.82 |
FORM 'B'
| RESEARCH & DEVELOPMENT: | | |
| 1. Specific areas in which R & D Carried out by the Company | NIL | NIL |
| 2. Benefits derived as a result of the above | NIL | NIL |
| 3. Future Plan of Action | NIL | NIL |
| 4. Expenditure on R & D | NIL | NIL |
| TECHNOLOGY ABSORBTION, ADAPTATION AND INNOVATION: | | |
| 1. Effort, in brief, made towards Technology absorption, adaptation and innovation | N.A. | N.A. |
| 2. Benefits derived as a result of the above efforts | N.A. | N.A. |
| 3. In case of imported technology (imported during the last 5 years reckoned from the beginning of the financial year), following information may be furnished | N.A. | N.A. |
C. FOREIGN EXCHANGE EARNINGS & OUTGO:
| 1. Earnings in Foreign Currency on F.O.B. basis - | |
| Export of Goods | Rs. 9,46,07,474 |
| 2. Value of imports on C.I.F. basis - | |
| - Raw materials | Rs. 3,46,63,249 |
| 3. Expenditure in Foreign Currency | |
| a. Bank Charges | Rs. 2,10,256 |
| b. Sales Commission | Rs. 21,30,711 |
| c. Travelling Expenses | Rs. 4,96,752 |