general optics asia ltd Directors report

DIRECTORS REPORT

The Directors have pleasure in presenting the Thirty first Annual Report of the Company together with the Audited Accounts for the year ended 31st March 2014.

FINANCIAL RESULTS

( Rs. In lakhs )

Particulars	2013-14	2012-13
Revenue from Operations (net of Duties & Taxes)	1654.32	1676.08
Other income	161.72	162.13
Profit before interest, Depreciation & Taxation	518.13	715.54
Interest	3.43	28.71
Depreciation	137.75	135.35
Profit Before Taxation	376.95	551.48
Provision for Taxation (net)	122.70	180.62
Profit after tax	254.25	370.86
Profit and loss a/c balance brought forward	1082.00	1553.20
Profit available for appropriation	1336.25	1924.06
Appropriations:
Transfer to General Reserve	(37.69)	(55.15)
Prior period adjustments	0.37	(2.41)
Interim Dividend Disbursed	-	(675.00)
Tax on Interim Dividend	-	(109.50)
Dividend (Proposed)	(135.00)	-
Dividend Tax	(22.94)	-
Balance Carried to the Balance sheet	1140.98	1082.00

PROSPECTS

The year 2014 - 15 commenced with an Order Book of Rs.7.00 Crores. During the year under review your company participated in the DEFEXPO, exhibition held at DELHI during February 2014 and has established contact with new customers. Some of these customers have already started placing trial orders with your company for their Optical and Opto Mechanical component requirements. The future order potential from these Customers is very promising.

QUALITY MANAGEMENT SYSTEMS CERTIFICATION

Your company retained the ISO 9001-2008 series certification after the surveillance audit conducted in April 2014. It has also registered for SC21 Certification.

INDUSTRIAL RELATIONS

During the year under review your company enjoyed good industrial relations, without any man day loss.

DIVIDEND

On the basts of results achieved, your Directors recommend a dividend of Rs.10/- per share ( Rs.135.00 Lakhs), for the year 2013-2014 .

The members may please note that this is the 25th successive Year of dividend declaration by your company.

DIRECTORS RESPONSIBILITY STATEMENT

In accordance with the provisions of Section 217 (2AA) of the Companies Act, 1956, your Directors confirm :

a) that in preparation of the Annual Accounts for the year ended 31.3.2014, the applicable accounting standards have been followed along with proper explanations for material departures, if any.

b) that the Directors have selected such Accounting Policies as mentioned in Note 23 of the Annual Accounts and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for that period.

c) that the Directors have taken proper and sufficient care 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 detecting and preventing fraud and other irregularities.

d) that the Directors have prepared the Annual Accounts on a going concern basis.

ENERGY. FOREIGN EXCHANGE AND TECHNOLOGY

Information as required under 217(1) (e) of the Companies Act 1956, is enclosed with this Report.

AUDITORS

Ganesan & Company, Chartered Accountants, Puducherry are retiring at the conclusion of this Annual General Meeting and are eligible for re-appointment.

PARTICULARS OF EMPLOYEES

The statement giving particulars of employees, as required under Section 217 (2A) of the Companies Act, 1956, read with companies (particulars of employees) rules 1975 forms part of this report

DIRECTORS

The Director who retires by rotation is Prof. R. Vaidyanathan, and being eligible offers himself for re election.

ACKNOWLEDGEMENT

Your Directors wish to place on record, their appreciation for the continued support from Employees, Shareholders, Bankers, Valued Customers and the Government of Puducherry.

	BY ORDER OF THE BOARD
	S. MURALI
	Chairman and Managing Director
PLACE: PUDUCHERRY
DATE : 07.06.14

INFORMATION AS REQUIRED UNDER SECTION 217(1 Me) OF THE COMPANIES ACT 1956.

1. CONSERVATION OF ENERGY :

a. Measures taken :

i) Provision of a separate chiller for Coating (used only when the machine is in actual operation) resulted in reduced Power consumption.

ii) Replacing the 1500 W hot plate used in the production line ( M/c Shop ) with adhesive silicon heater of 1000W lead to reduced power consumption.

iii) As part of TPM / TQM and 5S initiatives, we continue to do periodic review and up keep of equipment as an ongoing activity leading to even loading of the machines. This also resulted in power savings.

iv) As reported last year, the single phase diffusion heater of 9KW in Coating Machine Was replaced by a three phase 3KW heater, resulting in power savings.

v) Measures taken in previous years are continued.

b. Additional Investment proposals if any, for reduction in consumption of energy:

We are continuing the periodical energy audit exercise, as part of our TPM initiatives during the Year, to bring about savings in energy consumption.

As a result, we have decided to implement the following power saving measures during the year 2014-15:

• Fitment of AC VFD in Screw Compressor motor of the air Compressor.

• Complete the process of replacing existing metal halide lamps to equivalent LUX level LED street lights.

c. Impact of f(a) & (b)

Reduction in power consumption.

2. RESEARCH AND DEVELOPMENT :

a) Specific areas:

During the year under review, R&D efforts resulted in > Design & Development of process(s) for

-ultra high reflectance Coatings ( R >99.5% )for various optical applications

- coating process for FIR applications - AR coating for 2-2.5um and 3.6-4.9um

- sub angstrom micro-roughness reflective Coatings - Al mirrors with 1A - 10A,

- 90% reflectance Beam Splitter with higher Laser damage threshold

- Dual wave length Coating with higher laser damage threshold.

- Copper Coating.

- Process for ZERODUR glass Ceramic high flatness polishing.

- Process for porro prisms with knife edge quality of 0.2A (PV) with high pass filter

- Process for compliance polishing Tool for super polishing of large diameter spherical surfaces.

- Process for polishing IR transmitting Crystal Optics.

b) Benefits Derived :

As a result of the above R&D efforts in developing process(s) for various applications, we expect to generate more high value orders in the coming years.

c) Future Plan of Action :

Development of process for

i) AR Coating with higher Laser Damage threshold for Q Switch prisms..

ii) Development of single element filters for space applications.

iii) MWIR AR coatings

iv) Process for testing of IR optical Systems.

d) Expenditure on Research & Development:

i) Capital	Rs. 36.42 Lakhs
ii) Recurring	Rs. 164.90 Lakhs
iii) Total	Rs.201.32 Lakhs
iv) Total R&D Expenditure as a percentage of total Sales Turnover	12.17%

e) Technology Absorption. Adaptation and Innovation :

Technology absorption, adaptation and innovation is an ongoing process at General Optics, as we are a custom product manufacturing company.

f) Benefits derived as a result of the above efforts :

Products for new and emerging market segments.

3. FOREIGN EXCHANGE EARNINGS AND OUTGO :

During the year under report, the FOB value of exports was Rs1104.03 lakhs. The Foreign Exchange outgo during the year was Rs 391.06 lakhs. The Net Foreign Exchange earnings for the Year is Rs.712.97 lakhs. The net foreign Exchange earnings of the company is expected to be maintained in the year 2014-15.

	BY ORDER OF THE BOARD
	S.MURALI
	Chairman and Managing Director
PLACE: PUDUCHERRY
DATE : 07.06.14

ANNEXURE TO THE DIRECTORS REPORT.

Information as per section 217(2A) read with the Companies (Particulars of Employees) Rules, 1975 forming part of the Directors Report for year ended 31^st March 2014.

S.No..	Name	Designation	Qualification	Gross Remuneration before (TDS) Rs.	Age (Years)	Experience (Years)	Dateof Commencement of employment	Last employment before joining the Company and the position held.
1	S. Murali	Chairman and Managing Director	B. Tech., M.S.	60,00,000/-	61	37	08.10.1982	Marketing Manager, Mettur Beardsell Ltd

Gross Remuneration includes Allowances, Perquisites, etc., paid by the Company.

Employed for the full year and received remuneration at the rate not less than Rs.60,00,000/- per annum for the year.

Place: Puducherry	BY ORDER OF THE BOARD
Date: 07.06.2014
	S. MURALI
	Chairman and Managing Director