The Directors present the SEVENTEENTH ANNUAL REPORT together with the Audited Statementof Accounts for the Financial Year 2009-10 ended 31st March, 2010,
1. FINANCIAL RESULTS:
(Rs. in lacs)
|Particulars ||2009-10 ||2008-09 |
|Gross Income ||1,50,747.67 ||3,11,488.57 |
|Profit/(Loss) before Depreciation and Tax ||25.86 ||10.11 |
|Less: Depreciation ||28.57 ||27.38 |
|Profit/(Loss) Before Tax ||(2.71) ||(17.27) |
|Less: Provision for Tax ||0.00 ||0.85 |
|Add: Deferred Tax Liability ||0.91 ||5.33 |
|Profit/(Loss) After Tax ||(1.80) ||(12.79) |
|Less: Prior Period Expenses ||0.00 ||0.15 |
|Balance Carried to Balance Sheet ||(1.80) ||(12.94) |
During the year under report, the Company continued to carry on the business of rentingof storage tank and trading in commodities such as Shares in Joint Stock Companies. CastorOil, Sludge Sales and Currencies and also in gold and silver.
Subsequently, at the end of the year, the Company has decided to close down thebusinesses of dealing in bullions, gold and silver, currencies etc. However, the Companyshall continue to carry on the business of renting of storage tank, trading in commoditiesand shares and securities.
The turnover of the Company for the year 2009-10 has substantially reduced (by 48.39%to 1,50,747.67 Lacs as compared 3,11,488.57 Lacs in 2008-09) due to decrease in tradingactivities. Due to increase in total expenditure, there has been increase in cash profit,(i.e. Profit before Depreciation and Tax of Rs.25.86 lacs as compared to Rs.10.11 Lacsduring 2008-09).
After charging Depreciation, the Company made loss before tax of Rs.2.71 lacs ascompared to loss of Rs. 17.27 Lacs during 2008-09. After providing for Taxation, theCompany has made loss of Rs. 1.80 lacs as compared to Rs. 12.94 lacs. The debit balance ofRs.1.80 lacs has been transferred to Balance Sheet.
In view of the insufficient profit during the year as well as accumulated losses, theBoard of Directors is unable to recommend any dividend on the Equity Shares for the yearunder review.
Two of your Directors viz. Shri Punamchand R. Acharya and Shri Pravinchandra M. Thakkarretire by rotation in terms of Articles 126 of the Articles of Association of the Company.They, however, being eligible offer themselves for reappointment.
Shri Sankarlal S. Thakkar was appointed as Director of the Company by the Board ofDirectors in its meeting held on 10th May, 2010 with immediate effect.
Shri Chaturbhai R. Majithia, Director and Smt. Swetal C. Pandya, Company Secretaryresigned from their office w.e.f. 10th May, 2010 and their resignation were sanctioned bythe Board of Directors in its meeting held on 10th May, 2010.
4. DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to the requirement of Section 217 (2AA) of the Companies Act, 1956, withrespect to Directors' Responsibility Statement, it is hereby confirmed:
(i) that in the preparation of the annual accounts, the applicable accounting standardshad been followed along with proper explanation relating to material departures;
(ii) that the Directors had selected such accounting policies and applied themconsistently and made judgments and estimates that are reasonable and prudent, so as togive a true and fair view of the state of affairs of the Company at 31st March, 2010 beingend of the financial year 2009-10 and of the loss of the Company for the year;
(iii) that the Directors had taken proper and sufficient care for 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;.
(iv) that the Directors had prepared the annual accounts on a going concern basis.
5. DEMATERIALISATION OF EQUITY SHARES:
Shareholders have an option to dematerialise their shares with either of thedepositories viz NSDL and CDSL. The ISIN allotted is INE750B01010.
6. PERSONNEL AND H. R. D.:
The industrial relations continued to remain cordial and peaceful and your Companycontinued to give ever increasing importance to training at all levels and other aspectsof H. R. D.
7. MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
Management Discussion and Analysis Report for the year under review, as stipulatedunder Clause 49 of the Listing Agreement with the Stock Exchanges is presented in aseparate section forming part of the Annual Report.
8. CORPORATE GOVERNANCE:
The Report on Corporate Governance as per Clause 49 of the Listing Agreement isannexed.
9. COMPLIANCE CERTIFICATE UNDER THE COMPANIES ACT, 1956:
Your Company has obtained Compliance Certificate as required under the Proviso toSection 3S3A of the Companies Act, 1956 from M/s. Mehta Hurkat & Associates, CompanySecretaries, Ahmedabad which is attached to the Directors' Report.
The Equity Shares of the Company are listed on Ahmedabad Stock Exchange, Bombay StockExchange and Saurashtra-Kutch Stock Exchange. The Company is generally regular in paymentof Annual Listing Fees. The Company has paid Listing fees upto the year 2010-11 toAhmedabad and Bombay Stock Exchanges.
The Company's properties including building, plant and machinery, stocks, stores etc.continue to be adequately insured against risks such as fire, riot, strike, civilcommotion, malicious damages, machinery breakdown etc.
The present Auditors of the Company M/s. Wadhawan & Co., Chartered Accountants,Ahmedabad will retire at the ensuing Annual General Meeting. They have submittedcertificate for their eligibility for re-appointment under Section 224(1-B) of theCompanies Act, 1956. The notes of Auditors on accounts are self-explanatory.
11.3 PARTICULARS OF EMPLOYEES:
None of the employees of the Company is drawing remuneration requiring disclosure ofinformation under Section 217(Z-A) of the Companies Act, 1956, read with the Companies(Particulars of Employees) Rules, 1975.
The Company has not accepted during the year under review any deposit as defined underthe Companies (Acceptance of Deposits) Rules, 1975.
12. PARTICULARS AS REQUIRED UNDER COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OFTHE BOARD OF DIRECTORS) RULES, 1988:
Information as per section 217(l)(e) of the Companies Act, 1956 read with rule 1 of theCompanies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988is given in the annexure and forms an integral part of this report.
Your Directors express their sincere thanks and appreciation to Promoters,Shareholders, Suppliers and Customers for their constant support and co-operation.
Your Directors also place on record their gratitude to the Banks, FinancialInstitutions and Government Departments for their confidence reposed in the Company.
| ||By Order of the Board |
|Place : Ahmedabad ||Sukhdev R. Acharya |
|Date : 31st July, 2010. ||Chairman & Managing Director |
Annexure to Director's Report
Particulars required under the Companies (Disclosure of particulars in the Report ofthe Board of Directors) Rules, 1988
A. Conservation of Energy:
a. Energy Conservation measures taken:
The Company accords high priority to conservation of energy Several concrete steps havebeen taken to save energy
b. Impact of measures at (a.) above for reduction of energy consumption and consequentimpact on the cost of production of goods:
The measures taken would result in lower consumption and thereby may result in thelower cost of production of the finished goods
c. Total energy consumption and energy consumption per unit of production:
As per Form No A Rule 2
B. Research and Development:
Since the Company's operation are process oriented and does not manufacture andderivatives from raw material, there is nothing like research and development forCompany's product and therefore this clause is not applicable
C. Foreign Exchange Earning and Outgo:
|Particulars ||2009-2010 ||2008-2009 |
| ||(Rs. In lacs) ||(Rs. In lacs) |
|Foreign Exchange Earnings ||Nil ||Nil |
|Foreign Exchange Outgo ||Nil ||Nil |
FORM A (See Rule 2)
Form for disclosure of particular with respect to conservation of energy
Power & Fuel Consumption per Metric Ton
|A. ELECTRICITY || || |
|Unit ||34803 ||41538 |
|Total Amount (Rs ) ||294291 ||508839 |
|Rate/Unit (Rs) ||8.5 ||12.25 |
|B. LIGNITE 'A' GRADE || || |
|Quantity (tones) ||Nil ||Nil |
|Total Cost ||Nil ||Nil |
|Rate/Tonne ||Nil ||Nil |
|Total Amount (Rs ) ||Nil ||Nil |
|Average Rate (approx) ||Nil ||Nil |
|Total Quantity Processed (MT) ||Nil ||Nil |
|Consumption of energy for processing one Mt: || || |
|Electricity ||Nil ||Nil |
|Coal per Mt ||Nil ||Nil |
| ||By Order of the Board |
|Place Ahmedabad ||Sukhdev R. Acharya |
|Date 31st July 2010 ||Chairman & Managing Director |