The Members of Prima Industries Limited
Your Directors have pleasure in presenting the 16th Annual Report togetherwith the Audited Balance Sheet and Profit and Loss Accounts for the year ended 31st March2010.
During the year, the Company achieved Turnover of Rs1282.49 Lacs and made a loss ofRs.-186.96 Lacs.
|Particulars ||Current Year ||Previous Year |
| ||31/03/2010 ||31/03/2009 |
| ||(Rs.Lacs) ||(Rs.Lacs) |
|Turnover ||1282.49 ||1508.25 |
|Profit Before depreciation ||-82.24 ||- 229.39 |
|Depreciation ||104.72 ||104.44 |
|Profit (Loss) after Depreciation & Taxes ||-186.96 ||-333.83 |
The Demand for vegetable oils is on increase due to increase in both human andindustrial consumption. Enhanced capacities are needed for processing oil cakes for oilextraction and refinery. Your directors are optimistic to cash on these demands. Yourdirectors are optimistic to do better in the years to come.
Mr. Rajyawardhan Agarwal, Director retires by rotation at the forthcoming 16thAnnual General Meeting of the Company. Mr. Rajyawardhan Agarwal, Director, being eligible,offers himself for reappointment.
M/s G. Joseph and Associates, Chartered Accountants, Cochin will retire at theforthcoming Annual General Meeting of the Company and are eligible for re-appointment asalso indicated their willingness to be reappointed.
COMMENTS ON THE AUDITORS' REPORT
Auditors Report point No: VI (1) Company has arrived at a One Time Settlement withBanks and Financial Institutions and the settlement amounts are being paid. Please referSchedule -16, Notes on Accounts Point No.4.
The Company is hopeful to pay the OTS and when the Company become debt free, theNetworth will become positive. Then the Company will approach BSE for revocation ofsuspension of Shares and the same will be expected to happen before March 2011.
PERSONNEL AND INDUSTRIAL RELATIONS
Industrial relations of the Company continued to be cordial during the year. YourDirectors take this opportunity to record their appreciation for the services rendered bythe employees at all levels.
The Company has not accepted any fixed deposits under the provisions of Companies(Acceptance of Deposits) Rules, 1975.
Your Company does not have any employee in respect of whom information under Section217(2A) of the Companies Act, 1956 as amended, is required to be annexed.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
As required under Section 217(1)(e) of the Companies Act, 1956 read with the Companies(Directors Particulars in the Report of Board of Directors) Rules 1988, the informationrelating to Conservation of Energy, Technology Absorption and Foreign Exchange Earningsand Outgo in Form No.A&B is required, which is annexed to this report.
DIRECTOR'S RESPONSIBILITY STATEMENT
The Directors confirm:
a. that the applicable accounting standards have been followed along with properexplanation wherever required in the preparation of Annual Accounts.
b. that the Company has adopted prudent accounting policies.
c. that proper care has been taken for maintenance of accounting records in accordancewith the provisions of the Act and
d. that the Annual Accounts of the Company have been prepared on a going concern basis.
REPORT ON CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION AND ANALYSIS
A Report on Corporate Governance and Management Discussion and Analysis as requiredunder Clause 49 of the Listing Agreement is attached.
The Board of Directors wishes to place on record their sincere gratitude for theassistance extended by Industrial Development Bank of India (IDBI). The Directors alsothank State Bank of India and Bank of India for their continued support to the company.
Your Directors thank all the employees and share holders for their active support andco-operation.
| ||For and on behalf of the Board |
|Place: Cochin || |
|Date: 30.06.2010 ||Sanjay Gupta |
| ||Managing Director |
ANNEXURE TO THE DIRECTORS' REPORT
INFORMATION AS PER SECTION 217(1)(e) AND FORMING PART OF THE DIRECTORS REPORT
The Company is making all round efforts for the conservation of energy. To reduce theenergy cost, energy efficient equipments were used and the effect of the same has beenfelt.
Total energy consumption and energy consumption per unit of production as prescribed in"form A" is not applicable to the company.
TECHNOLOGY ABSORPTION, ADOPTION AND INNOVATION
Research and Development:
|1. Specific areas in which R&D carried out by the Company ||Nil |
|2. Benefits derived as a result of above R&D ||NA |
|3. Future Plan of Action ||To set up an R & D Department with a view to continuously upgrade the quality of final product through Research. |
|4. Expenditure on R&D || |
|a. Capital ||Nil |
|b. Recurring ||Nil |
|c. Total ||Nil |
|d. Total R&D expenditure as a percentage of total turnover ||: Nil |
|Technology, Absorption, Adaption and Innovation || |
|1. Efforts, in brief, made towards absorption ||: Latest technology has been adapted and innovation fully implemented. |
|2. Benefits recorded as a result ||: Production of quality products acceptable to the user Industry. |
|3. Particulars of Technology imported during the last 5 years ||: Nil |
|a. Technology imported ||: NA |
|b. Year of import ||: NA |
|c. Has technology been fully absorbed ||: NA |
|d. If not fully absorbed, area where this has not taken place, reasons therefore and future plans of action ||: NA |
III FOREIGN EXCHANGE EARNINGS AND OUTGO
|a. Activities relating to exports, initiatives taken to increase exports, development of new export market for products and services and export plan ||: The Company has not yet entered the export market. Marketing efforts are being strengthened to explore the possibility of exports. |
B.Total Foreign Exchange earned and used
|Expenses in Foreign Currency (Travelling) ||Nil |
|Capital Goods Import ||: Nil |
|Raw materials Import ||: Nil |
|Trading Goods ||Nil |
|Others ||Nil |
| ||For and on behalf of the Board |
|Place: Cochin ||Sanjay Gupta |
|Date : 30.06.2010 ||Managing Director |