C.G. Impex Ltd Directors Report

C.G. IMPEX LIMITED ANNUAL REPORT 2006-2007 DIRECTORS REPORT To, The Members of C.G. IMPEX LIMITED Your Directors have pleasure in presenting their the 12th Annual Report together with the Audit Accounts for the year ended on 31st March, 2007. FINANCIAL RESULTS Amt. Rs. in lacs Particulars 2006-07 2005-06 Sales and other Income 17515.95 81112.25 Profit before Tax 321.98 25.23 Net Profit for the Year 202.05 15.97 OPERATIONS Your directors are pleased to report that during the whole year favorable Conditions prevailed in the Bullion markets and in-spite of reduction in turnover the profit margins have increased substantially. Your company could earned a net revenue of Rs. 17514.95 lacs as compared to Rs. 81112.26 lacs for the previous year. For the year under review, the Company has achieved net profit of Rs. 15.97 lacs as compared to Rs. 202.05 lacs for the preceding year. Your directors expect better results for the current year. DIVIDEND Considering various factors such as present requirement of long term funds, current market conditions etc., your directors have not recommended any dividend for the year under report. FIXED DEPOSITS During the year under review your Company has not accepted any fixed deposits from the public and therefore no information is required to be furnished in respect of outstanding deposits. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO A. In view of the nature of operations, we have nothing to report on the conservation of energy, technology absorption matter. B. The information required to be given in respect of foreign exchange earnings and outgo is provided in the notes forming part of accounts. Members are requested to refer the same. PARTICULARS OF EMPLOYEES The Company has no employees whose salary exceeding the limits prescribed under Section 217 (2A) of the Companies Act, 1956. Hence the information required to be given under the said section read with Companies (Particulars of Employees) Rules, 1975 do not apply. DIRECTORS RESPONSIBILITY STATEMENT: Your Directors confirm that : (i) In the preparation of annual accounts, the applicable accounting standards have been followed. (ii) Appropriate accounting policies have been selected and applied consistently and have made judgements arid estimates that are reasonable and prudent so as to give a true and fair view of state of affairs of the company as at 31st March, 2007 and of the profit of the company for the year ended on that date. (iii) 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 your company and for preventing and detecting fraud and other irregularities. (iv) The Directors had prepared the annual accounts on a going concern basis. CORPORATE GOVERNANCE A report on Corporate Governance is also enclosed and forms part of the annual report. DIRECTORS Shri. Pravinchandra C. Soni retire by rotation and being eligible offer himself for re-appointments. LISTING OF THE SHARES: Your Companys equity shares are listed with the Ahmedabad Stock Exchange Limited and Bombay Stock Exchange Limited. The companys shares are available for dematerialization on both the depositories viz. National Securities Depository Ltd (NSDL) and Central Depository Services (India) Ltd. The Company has paid necessary listing fees to these exchanges. AUDITORS The Auditors M/s. R.R. Tibrewala & Co., Chartered Accountants retire at the ensuing annual general meeting. The Company has received a certificate from the auditors stating that their appointment, if made, will be within the limits prescribed under section 224 (1B) of the Companies Act, 1956. The Board propose to reappoint them. ACKNOWLEDGEMENT: The Board wish to place on record their sincere appreciation and acknowledge with gratitude the efforts put in and co-operation extended by bankers, shareholders, employees at all level and all other associated persons, bodies or agencies for their continued support. For and on Behalf of Board of Directors Place : Ahmedabad Date : 18.06.2007 MANUBHAI C. SONI Chairman Cum Managing Director MANAGEMENT DISCUSSION AND ANALYSIS Industry Structure & Developments C.G. IMPEX LIMITED is in the business of Gems & Jewellery, which are widely used by the general public for various purposes. Financial Performance: Performance of your company for financial year ended on 31st March, 2007 has been satisfactory. Your Company achieved the turnover of Rs. 17515.95 lacs and earned at profit after tax of Rs. 202.05 lacs for year against last year profit of Rs. 15.97 lacs. Our policy is to identify customers need, design and develop products, subsequently manufacture & supply at competitive pries to achieve total customer satisfaction. Internal control System/ Human Resources Considering the size of the company, your Company has adequate system of internal control to provide reasonable assurance that assets are safeguarded & protected from unauthorised use or disposition. During the financial year ended 31st March 2007, industrial relations continued to remain cordial. Future Outlook Based on the buoyancy of the Indian economy, the over all scenario and the steps taken by the Management, the future outlook of your Company looks bright. RISKS AND CONCERN The development of the company would depend on overall macro and micro economic policy of the Government. The rapid change in technological advancement requiring huge investment is an area of concern for the Company. Competition both at domestic and international level is increasing gradually. CAUTIONARY STATEMENT Statements in the Management Discussions and Analysis Report in regard to projections, estimates and expectations may be forward looking statements within meaning of applicable securities laws and regulations. Many unforeseen factors may come into place and affect the actual results, which could be different from what Directors envisage in terms of future performance and outlook. Market data and product information contained in this report have been based on information gathered from the various sources published and un-published reports, and their accuracy, reliability and completeness cannot be assured.