REPORT OF THE DIRECTORS
The Members of,
Arihant Domestic Appliances Limited, Pune
Your directors have pleasure in presenting the 18th Annual Report together with theAudited Accounts of the Company for the year ended 31st March 2009. The Financialhighlights of the year under review are as follows;
During the year 2008-09 your Company has achieved around 20% rise in sales as comparedto previous year. Total sale of Financial Years 2008-09 was Rs. 40,018.29 Lacs as comparedto sale of Rs. 31,892.85 Lacs in financial year 2007-08 for better understanding of thefinancial results of the Company separate summary report is also included in this annualreport.
| || ||(Rs. In Lacs) |
|Particulars ||2008-09 ||2007-08 |
|Turnover / Income (Gross) ||40,018.29 ||31,892.85 |
|Turnover / Income (Net) ||34,775.34 ||27,424.48 |
|Other Income ||305.94 ||168.21 |
|Total Expenditures ||33,289.33 ||26,082.15 |
|Profit Before Contingency Provision and Tax ||1791.94 ||675.55 |
|Interest and Finance Cost ||3020.81 ||1273.81 |
|Depreciation ||892.48 ||578.89 |
|Profit Before Tax ||1613.49 ||675.55 |
|Tax - Current ||186.95 ||66.65 |
|- Deferred ||404.22 ||252.8 |
|- FBT ||16.90 ||10.4 |
|- Income Tax Excess Provision in ||- ||(38.96) |
|Previous Year || || |
|- Wealth Tax ||1.19 ||(1) |
|- MAT ( Credit ) ||(165.01) ||21.24 |
|Profit After Tax ||1169.23 ||364.41 |
|Balance Brought forward from last year ||2156.89 ||2,222.15 |
|Profit Available for Appropriation ||3326.12 ||2,586.57 |
|Appropriations || || |
|Dividend on Preference Shares ||- ||4.00 |
|Corporate Dividend Tax ||- ||0.68 |
|Transfer to Capital Redemption Reserve ||- ||400.00 |
|General Reserve ||116.92 ||25.00 |
|Surplus Carried over to Balance sheet ||3209.19 ||2156.89 |
|EPS ||23.38 ||7.29 |
|Face value of Share Rs 10/- each) || || |
During the period under review, following is the list of Subsidiary Companies, withinthe meaning of Section 4(1)(b)(ii) of the Companies Act, 1956;
> Arihant Auto Components Private Limited
> Arihant Steel and Metal Wires Private Limited
> Arihant Steel Products and Services Private Limited
> Saicon Steels Private Limited, Mumbai
> Seven Star Electrodes Private Limited, Pune
WITHDRAWAL OF MERGER SCHEME
During the period under review, Company withdrew the scheme of Merger between SevenStar Electrodes Private Limited and the Company. The scheme was filed with HonorableBombay High Court in August 2008 but due to certain unavoidable circumstances, it wasthought fit by the Board to withdraw the same.
> Sankalp Forgings Private Limited :-
During the period under review, your Company increased its equity stake in SankalpForgings Private Limited from 26% (last year) to 51% (this year) thereby making itsubsidiary company of Arihant within the eyes of law.
During financial period 2008-09 Company achieved a turnover of Rs. 36.60 Crores andProfit before Tax (PBT) of Rs. 3.85 Crores as against turnover of Rs. 17.49 Crores and PBTof Rs. 41.36 Lacs during immediately preceding financial year. Sankalp possess enoughpotential to grow at a very high speed in near future.
The Board, for the year ended 31st March, 2009 has not recommended any dividend.
FOREIGN EXCHANGE EARNINGS AND OUT GO
Foreign exchange earning of Rs. 34.66 Lacs (FOB Value of exports) and outgo of Rs.26.29 Lacs.
PARTICULARS OF EMPLOYEES
There are no employees falling within the purview of Section 217(2A) of the CompaniesAct, 1956 read with the Companies (Particulars of Employees) Rules, 1975 as amended.
During the period under review Company has not accepted any deposits from persons otherthen Shareholders, Directors and their relatives.
In accordance with the provisions of the Companies Act, 1956, and the Company'sArticles of Association, Mr. Chandu L. Chavan and Mr. Sanjay H. Waghulade retire byrotation and are eligible for re-appointment.
During the period under review, Mr. Gaurav Pradhan, Nominee Director of Deutsche BankAG, Mumbai stepped down from the Board with effect from 07.07.2009. The Board places onrecord its appreciation of the contribution made and value derived in the deliberations ofthe Board during his tenure as a Director.
Furthermore, following directors were appointed as Whole-Time Director(s) w.e.f.10.07.2008 by passing ordinary resolution in general meeting of the Company;
> Chandu L. Chavan
> Sanjay H. Waghulade
> Parag M. Mulye
> Sanjay Bhade
> Shivaji Katke
During the review period, Messrs AMB & Co, Chartered Accountants, Pune (existingauditor) who holds office until conclusion of ensuing Annual General Meeting (AGM)resigned from the post of auditor with effect from 13.01.2009 thereby causing casualvacancy within the meaning of Company Law. Messrs B. K. Khare & Co., CharteredAccountant, Pune was thereafter appointed as Statutory Auditor of the Company w.e.f20.01.2009 until conclusion of ensuing AGM.
The Company has received a letter from M/s. B. K. Khare & Co., to the effect thattheir appointment, if made, by the Company for the year 2009-10 will be within the limitprescribed under section 224(1B) of the Companies Act, 1956. The Board of Directorsrecommends their re-appointment.
ENERGY, TECHNOLOGY AND FOREIGN EXCHANGE:
Details of energy conservation and research and development activities undertaken bythe Company along with the information in accordance with the provisions of Section217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure of Particularsin the Report of Board of Directors) Rules, 1988, are given in Annexure 'A' to theDirectors' Report.
The information and opinion expressed in the Report may contain certain forward-lookingstatements, which the management believes are true to the best of its knowledge at thetime of its preparation. Actual results may differ materially from those either expressedor implied in the Report. Important factors that could make a difference to the company'soperations include, among others, economic condition in the domestic and the overseasmarket in which the company operates, changes in the government regulations, tax laws andother statue and incidental factors.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirement under the section 217(2AA) of the Companies Act 1956, withrespect to Directors' Responsibility Statement, it is hereby confirmed:
1. that in the preparation of the annual accounts for the financial year ended on 31stMarch, 2009, the applicable accounting standards have been followed along with properexplanation relating to material departures;
2. that the Directors have selected such accounting policies and applied themconsistently and made judgments and estimates that were reasonable and prudent so as togive a true and fair view of the state of affairs of the Company at the end of thefinancial year and of the Profit or Loss of the Company for the year under review;
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 Directors have prepared the accounts for the financial year ended on 31stMarch, 2009 on a 'Going Concern basis'.
The Directors place on record their appreciations for the wholehearted and sincerecooperation received by the Company during the year from the clients, banks, financialinstitutions, employees and various Government Authorities during the year under review.
The Directors also wish to place on record their deep sense of appreciation for thecommitted services of the executives, staff and workers of the company at all levelstowards the growth of the company.
| ||FOR AND ON BEHALF OF THE |
| ||BOARD OF DIRECTORS, |
|Place: PUNE ||CHANDU CHAVAN |
|Date: 03.09.2009 ||CHAIRMAN |
ANNEXURE TO THE REPORT OF DIRECTORS IN TERMS OF COMPANIES (DISCLOSURE OF PARTICULARSINTHE REPORT OF BOARD OF DIRECTORS) RULES 1988. FORM - A
Form for disclosure of particulars with respect to conservation of energy.
|Particulars ||31st March 2009 ||31st March 2008 |
|(A) Power and Fuel Consumption || || |
|1. Electricity || || |
|(a) Purchased || || |
|Units (KW) ||5317390 ||6909280 |
|Total Amount (Rs.Lacs) ||22864777 ||23491552 |
|Rate/Unit (Rs.) ||4.3 ||3.4 |
|(b) Own Generation ||NIL ||NIL |
|2. Coal ||NIL ||NIL |
|3. Furnace Oil ||NIL ||NIL |
|4. Other/Internal Generation ||NIL ||NIL |
|(B) Consumption per Unit of Production- ||(In view of the heterogeneous product mix the consumption per unit of product has not been indicated for the various products/units. However the efforts are being made to arrive at such figures in years to come.) |
FORM - B
Form for disclosure of particulars with respect to Technology Absorption. There isnothing much to comment under this head.
| ||For and on behalf of the Board |
|Place: Pune ||C. L. Chavan |
|Date: 03.09.2009 ||Chairman |