ctr manufacturing industries ltd Directors report

DIRECTOR

FOR THE YEAR ENDED 31st MARCH 2014

To,

The Members,

Your Directors present their Report together with the Audited Balance Sheet as at 31st March 2014 and the Profit and Loss Account for the year ended on that date:

FINANCIAL RESULTS

Particulars	Year Ended 31.3.2014	Year Ended 31.3.2013
	Rs Lacs	Rs Lacs
Gross Sales and Income	18278.66	16968.97
Less: Excise Duty / Service Tax	1824.36	1723.06
	16454.30	15245.91
PROFIT BEFORE TAX	1692.35	1552.74
Less : Provision For Tax	614.77	484.45
PROFIT AFTER TAX	1077.58	1068.29
Prior Period Adjustments	64.00	(27.02)
Balance brought forward from previous year	50.26	101.02
Proposed Final Dividend	(65.94)	(65.94)
Corporate Tax on Dividend	(11.21)	(11.21)
Transfer to General Reserve	(1000.00)	(1000.00)
Transfer to Reserve For Doubtful Debts	(16.38)	(14.88)
BALANCE CARRIED TO BALANCE SHEET	98.31	50.26

DIVIDEND

The Board of Directors recommends a dividend of Rs 35.00 per equity share.

OPERATIONS

During 2013-14 gross sales and income increased from Rs 16968.97 Lacs to Rs 18278.66 Lacs and Profit before tax increased from Rs 1552.74 Lacs to Rs 1692.35 Lacs .

OUTLOOK

With increasing focus on the power sector, the Companys products should experience increased demand.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

As required by the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, the relevant data pertaining to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo are given in the prescribed format as an Annexure to this Report.

DIRECTORS

Mr. B. M. Suri retires by rotation at the forthcoming Annual General Meeting and being eligible, offers himself for re-appointment. During the year Mrs. Prajakta A. Kumar was appointed as an Additional Director (Whole-time executive Director) and her appointment was confirmed by the members at the Extra Ordinary General Meeting held on 19.03.2014.

PARTICULARS OF EMPLOYEES

The Company does not have any employee to whom the provisions of Section 217 (2A) of the Companies Act, 1956 apply.

SUBSIDIARY COMPANY

As required Under Sec 212 of the Companies Act, 1956, the Directors Report and Audited Accounts of Polymermann (Asia) Private Limited are attached along with the accounts of the Company.

INDUSTRIAL RELATIONS

Industrial and Employee relations continued to be cordial during the year under review.

SOCIAL RESPONSIBILITY

The Company continues to extend support to Vanarai to improve rural infrastructure of Bazar Vahegaon and Ambadgaon villages in Badnapur taluka of Jalna district. The Company has given clearance to Vanarai for preliminary study of sustainable rural development at village Mulegaon, in Nasik district. On receipt of report, the Company will extend financial support to Vanarai to improve rural infrastructure of this village.

DIRECTORS RESPONSIBILITY STATEMENT

The Directors assure Members that the financial statements for the year under review conform in their entirety to the requirements of the Companies Act, 1956.

The Directors confirm that:

• the Annual Accounts have been prepared in conformity with the applicable Accounting Standards;

• the Accounting Policies selected and applied on a consistent basis, give a true and fair view of the affairs of the Company for the financial year and of the profit for the year;

• sufficient care has been taken that adequate accounting records have been maintained for safeguarding the assets of the Company, and for prevention and detection of fraud and other irregularities;

• the Annual Accounts have been prepared on a going concern basis.

AUDITORS

The Companys auditors A. A. Bhat & Company hold office up to the conclusion of the ensuing Annual General Meeting, and being eligible, are recommended for re-appointment on the terms to be finalised by the Board of Directors. They have furnished the requisite certificate to the effect that their re-appointment, if effected, would be in accordance with Section 224(1 B) of the Companies Act, 1956.

On behalf of the Board of Directors

B. M. Suri	A. P. Kumar
Vice Chairman	Managing Director

Mumbai, 14 May 2014

ANNEXURE TO DIRECTORS REPORT Under Section 217(1)(e) of the Companies Act, 1956

A CONSERVATION OF ENERGY
	FORMA
1. Energy conservation measures	Some of the conventional light fittings in the factories have been changed to Light Emitting Diode (LED) fittings. Wind Turbine Generator continued to generate more units of electricity than consumed by all the Companys facilities.
2. Additional investments & proposals if any, being implemented for reduction of consumption of energy	Further LED fittings will be installed.
3. Impact of the measures at (a) and (b) above for reduction of energy consumption and consequent impact on the cost of production of goods	Marginal impact on the cost of production since manufacturing activities do not use a significant amount of power.
B TECHNOLOGY ABSORPTION
	FORM B
RESEARCH AND DEVELOPMENT (R&D)
1. Specific areas in which R & D is carried out by the Company	Development of new products
	Extention of Product range.
	Validation of design and development activities.
	Testing of alternate materials.
	Customer delight.
2. Benefits derived as a result of the above R&D	Enhanced revenue and growth.
3. Future plan of action	Includes range extension of Tapchangers, Adoption of new technology trend in Tapchangers and On Line Filters for Tapchangers.
	NABL Accreditation of R & D center at Nasik.
	Testing of Transformers.

 

4. Expenditure on R&D	31 March,2014	Rs Lacs
i. Capital	a. Buildings	1.68
	b. Test Equipment	362.32
	c. Prototypes	90.25
	d. Dies and Molds	56.04
	e. Electrical Installation	48.14
	f. Works Equipment	8.71
	g- Capital WIP	-
	h. Others	2.23
	i. TOTAL	569.37
li Recurring		169.57
iii Total of Capital & Recurring		738.94
iv Total R&D Expenditure as a
Percentage of total Turnover		4.5%

TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION

1. Efforts, in brief, made towards technology absorption, adaptation and innovation	Constantly innovating design and features of products.
2. Benefits derived as a result of the above efforts	Higher productivity.
3. a. Imported Technology	Not Applicable
b. Year of Import	Not Applicable
Has technology been fully Absorbed	Not Applicable
If not fully absorbed, areas where this has not taken place, reasons thereof and future . plan of action	Not Applicable
C FOREIGN EXCHANGE EARNINGS AND OUTGO
1. Activities relating to exports, initiatives taken to increase exports, development of new export markets for products and services and export plans	Focus on export business continues. Opportunities for export of spares and servicing are emerging.
2. Total Foreign exchange earned and used
Total Foreign exchange earned	Rs 982.12
Total Foreign exchange used	Rs 1110.94

On behalf of the Board of Directors

B. M. Suri	A. P. Kumar
Vice Chairman	Managing Director

Mumbai, 14 May 2014