bundy india ltd Directors report

Directors

Your directors have pleasure in presenting the FORTY THIRD ANNUAL REPORT together with Audited Accounts for the period ended 31st March 2014.

1. Financial Results & Operations

(Rs. in lacs

	Period Ended 31st March 2014	Period Ended 31st December 2012
	15 MONTHS	12 MONTHS
Total Income	28,795.64	22,370.64
Gross Profit (Before Finance Cost & Depreciation)	2,724.12	(478.32)
Less: Depreciation	844.21	513.28
Finance Cost	552.02	201.38
Profit/(Loss) before Tax	1,327.89	(1192.98)
Provision for Income Tax
Current Tax	130.01	0
Deferred Tax	139.60	(374.92)
Minimum Alternate Tax	(130.01)	0
Prior period adjustment	233.68	0
Profit/(Loss) after Tax	954.61	(818.06)

During the year company added fluid carrying systems operations at the Chennai facility which was set up in the earlier period for manufacture and assembly of plastic fuel tanks. During the period operations at the Pune facility were also consolidated.

Economy in general as well as automotive market faced the pains of slow down. Having set up new facilities in Bangalore, Chennai and Pune in the last two years, the slow down affected our growth plans. Passenger vehicle volume recorded a 5.3% decline in the year 2013 against 2012 and further 4.7% during the period upto May 2014 compared to the corresponding period previous year. With the support from new wins, the company achieved a sales growth of 2% on annualized basis.

There was a steep fall in rupee against major currencies during the year. Weakening of the rupee affected the profitability of the company. Recognizing the challenges, your company has taken several steps to improve operations and cut costs. This has resulted in a turning around the companys profitability by achieving a profit before tax of Rs13.3 crores against a loss of Rs 11.9 crores during the previous year.

Concerns remain due to continued slowdown in the market during the first of the current year. Several reports indicate a market revival during the second half of the year. Your board of directors would like to assure you that strategies and plans are in place and geared up to meet the market challenges.

2. Conservation of Energy

Particulars pursuant to the provisions of Section 217 (1) (e) of the Companies Act, 1956, read with the Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988, are given in the Annexure.

3. Employees

Information as per Section 217 (2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975, forms part of this report. As per the provisions of Section 219 (1) (b) of the Companies Act, 1956, the Report and the Accounts are being sent to the shareholders of the company excluding the statement of particulars of employees under Section 217(2 A) of the said Act. Any shareholder interested in obtaining a copy of the statement may write to the Company Secretary at the Registered Office of the Company.

4. Directors Responsibility Stater nt

Pursuant to Section 217 (2AA) of the Companies Act, 1956, the Directors confirm that, to the best of their knowledge and belief:

• in the preparation of the Profit & Loss Account for the period ended 31st March 2014 and the Balance Sheet at that date ("financial statements"), applicable accounting standards have been followed;

• appropriate accounting policies have been selected and applied consistently and such judgments and estimates that are reasonable and prudent have been made so as to give a true and fair view of the state of affairs of the Company as at the end of the period and of the profit of the Company for that period; proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. To ensure this, the Company has established internal control systems, consistent with its size and nature of operations. In weighing the assurance provided by any such system of internal controls its inherent limitations should be recognized. These systems are reviewed and updated on an ongoing basis. Periodic internal audits are conducted to provide reasonable assurance of compliance with these systems. The Audit Committee meets at regular intervals to review the internal audit function;

The financial statements have been prepared on a going concern basis.

5 Auditors

M/s. Price Where house & Co., Chartered Accountants, Statutory Auditors of the Company retire on conclusion of the ensuing Annual General Meeting of the Company and being eligible offer themselves for re-appointment. The observation made by the Auditors have been dealt with in the Notes to the accounts of the Company which are self explanatory and do not call for any further explanation.

6. Acknowledgement

The Board of Directors takes this opportunity to thank the employees for their contribution to the growth and success of your Company. We would also like to thank our stakeholders, customers, suppliers, and bankers for their continued support.

On behalf of the Board

AKHILESH RAI

Chairman

Place: Manesar

Date : 27th June, 2014

ANNEXURE TO DIRECTORS REPORT

Particulars pursuant to the companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988

CONSERVATION OF ENERGY

A ELECTRICITY	Period Ended
	Mar - 2014	Dec -2012
a) Purchased Units	10865692	7867454
Total Amount (Rs.ln lacs)	823.40	547.89
Rate/Unit (Rs.)	7.58	6.96
b) Own Generation Units	2557835	1792350
Units/ltr. of Diesel Oil	3.50	3.50
Rate/Unit (Rs.)	15.49	13.16
B FURNACE OIL / DIESEL
Quantity (Liters)	100300	87120
Total Amount (Rs in lacs)	56.18	41.89
Average Rate (Rs)	56.01	48.08
C CONSUMPTION PER MT OF PRODUCTION BUNDYWELD TUBES
Electricity (Units)	2923	3026
Furnace Oil (Liters)	40.62	40.65
D FOREIGN EXCHANGE EARNINGS AND OUTGO
Foreign Exchange Earnings (Rs. in lacs)	1520.22	422.36
Foreign Exchange Outgo (Rs. in lacs)	10719.19	9137.93