Ashco Niulab Industries Ltd Directors Report

TO THE MEMBERS

Your Directors present the Twenty Sixth Annual Report together with the Audited Statement of Accounts of company for the six months period 1st October, 2011 to 31st March, 2012.

OPERATIONS

The sales and Other Income of the company for the period six months ended 31st March, 2012 were Rs.2155.38 lacs as compared to Rs.12246.84 lacs for the previous year (eighteen months ended). The net profit / (loss) for the period six months ended (Rs.699.40) lacs as compared to (Rs. 1252.77) lacs for the previous year (Eighteen months ended).

The Company posted Cash Loss (Rs.400.96) lacs and Net Loss of (Rs. 699.40) lacs was arrived at after deducting Depreciation.

DIVIDEND

Your Directors do not wish to recommenced any dividend for the financial year and six months ended 31st March, 2012.

EXTENSION OF ANNUAL GENERAL MEETING OF THE COMPANY:

The Annual General Meeting of the company has been extended by three months, by virtue of the approval of jurisdictional Register of Companies, Mumbai, Maharashtra, Honble Ministry of Corporate Affairs dated 5th September, 2012 in pursuance of the application made by the company with the Registrar of Companies under Section 166 (1) of the Companies Act, 1956 in this regard.

The 26th Annual General Meeting of the Company was further extended by one month by virtue of the approval of jurisdictional Registrar of Companies, Mumbai, Maharashtra, Honble Ministry of Corporate Affairs dated 27th December, 2012, in pursuance of the application made by the company with Registrar of Companies under Section 166 (1) of the Companies Act, 1956 due to sickness of Chairman & Managing Director, so the Annual General Meeting could not be held in the calendar year 2012.

FUTURE OUTLOOK:

India has billion plus population and a home for various life threatening diseases. These factors provide an opportunity for global medical practitioners and healthcare providers to consider India as an effective destination for research and clinical studies. India has registered fast growth in the number of clinical trials over the past few years, reflecting that the country has become one of the most attractive destinations for medical research.

According to our new research report, "Booming Clinical Trials Market in India", the number of clinical studies by domestic and global players has sharply risen. The M&A activities, service agreements, and strategic collaboration have increased over the last four years. The majority of the deals in the contract research organizations market focused on establishing strategic alliances with other contract research organizations, technology providers, and pharmaceutical and biotech companies. In addition, on the back of favorable government support and effective regulatory mechanism provided by the ICMR and CDSCO, healthcare providers find it worthwhile to locate their trials in India.

DEPOSITS

The company has not invited or accepted any Public Deposits during the year.

SUBSIDIARY COMPANY

Your company has a 100% Subsidiary company abroad under the name and style Ashco Niulab FZE at Hamariaya Free Zone Authority UAE. As per approval granted by the Ministry of Corporate Affairs vide circular No. 02/2011 dated February 8, 2011, copies of the Balance Sheet, Profit and Loss Account, Report of the Board of Directors and Auditors of the Subsidiary company are not being attached to the Balance Sheet of the Company. The Annual Accounts of the subsidiary company and related detailed information relating to that will be made available to shareholders at the registered office of the company at any point of time.

STATUTORY INFORMATION

Information in accordance with 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, requiring disclosure of particulars regarding Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo given in the prescribed format is annexed hereto (Annexure-I) and forms part of this report.

PARTICULARS OF EMPLOYEES

In accordance with the provisions of section 217(2A) of the Companies Act, 1956 and the Rules framed thereunder, (Including any amendment, reenactment and modification thereof) and read with circular issued by Honble Ministry of Corporate Affairs in this regard, there is no employee in the company who if employed throughout the financial year was in receipt of remuneration for that year which, in aggregate was not less the sum prescribed for.

DIRECTORS

In accordance with the provisions of the Companies Act, 1956 & also Companys Articles of Association of the company Mr. Shashin Rajnikant Shah, Director retires by rotation.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to Section 217(2AA) of the Companies Act, 2000, the Directors confirm that:

1. in the preparation of the annual accounts, the applicable Accounting Standards have been followed with proper explanation relating to material departures;

2. appropriate accounting policies have been selected and applied consistently, and have made judgments and estimates that are reasonable and prudent so as to give a true & fair view of the state of affairs of the company as at 31st March, 2012 and of the loss of the company for the financial year and six months ended on that date;

3. 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 & detecting fraud & other irregularities;

4. the annual accounts have been prepared on a going concern basis.

CORPORATE GOVERNANCE REPORT

A detailed compliance report on Corporate Governance is provided elsewhere in the Annual Report. Practicing Company Secretarys Certificate on Compliance with the conditions of Corporate Governance under clause 49 of the Listing Agreement is also provided in the Annual Report.

AUDITORS REMARKS

The observations made by the Auditors with reference to Notes to the Accounts for the year under report are self-explanatory and need no further comments from the Directors.

AUDITORS.

GMJ & Co., Chartered Accountants the Auditors of the Company retire at the conclusion of this Annual General Meeting and are eligible for re-appointment.

ACKNOWLEDGMENTS

Your Directors place on record their appreciation of the valuable co-operation and support of Customers, Shareholders, Companys Bankers, and Government Authorities. The Board also wishes to express its appreciation to all the employees of the company for their contribution to the operations of the company during the year.

For and on behalf of Board

ASHOAK KOTWAANI

CHAIRMAN & MANAGING DIRECTOR

Registered Office:

"Lab House", Plot No. F-13,

Opp. SEEPZ, M. I. D. C.,

Andheri (East), Mumbai - 400 093

Date: 5th January, 2013

ANNEXURE - "I"

TO THE DIRECTORS REPORT

Particulars with respect to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo

A. Conservation of Energy
A. Conservation of Energy :	Power used in the company is drawn by different equipments from
	common source. Besides this Generator & UPS are also used as back up source. The company has designed & installed power distribution system perfectly well to utilize the power at optimum level of requirement. Laboratory building is designed in such a way that during day time no artificial lighting is necessary in the Laboratory. During the year under review all possible efforts were made to ensure optimum conservation of Electricity at all the Units of the company.
ii. Additional investments and proposals, if : any, being implemented for reduction of consumption of energy	Nil
iii. Impact of the measures at (i) and : (ii) above for reduction of energy consumption and consequent impact on the cost of production of goods	Not Applicable
iv. Total energy consumption and energy : consumption per unit of production	Not Applicable
B. Technology Absorption :	Not Applicable
C. Foreign Exchange Earnings and Outgo
i. Activities relating to exports, initiatives : taken to increase exports, development of new export markets for products and services and export plans	Nil

 

		(Rs.in Lacs)
ii. Total foreign exchange used and earned
	Current Year	Previous Year
	(01.10.2011 to 31.03.2012)	(01.04.2010 to 30.09.2011)
Foreign Exchange Earned	1563.39	418.17
Foreign Exchange used:
Traveling	2.33	24.39
Purchases	632.47	699.37