Indo Bonito Multinational Ltd Directors Report

To,

The Shareholders,

Your Directors have pleasure in presenting to you this 19^th Annual Report of your Company together with the Audited Accounts for the Financial Year ended on 31^st March, 2013.

Financial Results

Your Companys financial performance during the year has been encouraging and summarized below:

PARTICULARS	For Year ended 31st March, 2013	For Year ended 31st March, 2012
REVENUE FROM OPERATIONS
Revenue from Operation	232,208,486	55,880,287
Other Income	1,200,000	3,470,000
TOTAL REVENUE	232,208,486	59,350,287
EXPENSES:
Cost of Material Consumed	-	-
Purchase of Stock in Trade	181,593,101	46,722,903
Changes in Inventory of Finished Goods	1,084,056	84,1
Work in Progress and Stock in Trade	-	-
Employee Benefit Expenses	2,937,572	4,171,356
Finance Costs	25,822,153	45,074,970
Depreciation and Amortization Expenses	11,367,852	12,027,852
Other Expenses	1,648,229	5,195,186
TOTAL EXPENSES	224,452,963	113,276,392
PROFIT/ LOSS BEFORE EXCEPTIONAL & EXTRAORDINARY	89,55,523	(53,926,105)
Exceptional Items	-	(25,346,418)
PROFIT/ LOSS BEFORE EXTRAORDINARY ITEMS AND TAX	89,55,523	(79,272,523)
Extraordinary Items	-	-
PROFIT / (LOSS) BEFORE TAX	8,954,975	(79,272,523)
TAX EXPENSE
Current Tax	2,803,121	-
Earlier Year Tax	-	-
Deferred Tax	-	-
PROFIT/(LOSS) FOR THE PERIOD	6,152,402	(79,272,523)

Review of Operations

During the year under review, the Companys Net Income from operations stood at Rs. 232,208,400/- as compared to Rs. 55,880,287/-in the previous year. Profit After Taxation for the year under review stood at Rs. 6,152,301/- as against loss of Rs.(79,272,523)/- in the previous year.

Dividend

Keeping in mind the capital requirement for future growth of the Company and to conserve higher resources for operations of the Company, your Directors do not recommend dividend for the Financial Year ended 31^st March, 2013.

Share Capital

The Authorized Share capital of the Company remains unchanged during the Financial Year under review. Public Deposits

During the year under review, the Company has not accepted/renewed any deposits from the public within the meaning of Section 58A and 58AA of the Companies Act, 1956. Management Discussion and Analysis Management Discussion and Analysis Report for the year under review, as stipulated under clause 49 of the Listing Agreement with the Stock Exchange, is presented in a separate section forming part of the Annual Report.

Directors

During the current year, Mr. Shivara Timmaryappa was appointed as an Additional Director of the Company in the meeting of the Board of Directors held on 2^nd November, 2012. Mr. Shivara Timmaryappa , additional Director, would hold office till the ensuing Annual General Meeting. The Company has received notice in writing from members proposing his candidature, for the office of Director.

Mr. Marimuthu Rajangam, Director of the Company, who is liable to retire by rotation at the ensuing Annual General Meeting and being eligible, has offered himself for re-appointment.

Brief resume of the Directors proposed to be appointed / re-appointed as stipulated under clause 49 of the Listing Agreement with the Stock Exchange are given in the notice convening this Annual General Meeting.

The above appointments/ re-appointments form part of the notice convening the Annual General Meeting and the resolutions are recommended for your approval.

Directors Responsibility Statement

Pursuant to the requirement under section 217(2AA) of the Companies Act, 1956 with respect to the Directors Responsibility Statement, your directors state that:

• in the preparation of the annual accounts for the year ended 31^st March, 2013, the applicable Accounting Standards read with requirements set out under Schedule VI to the Companies Act, 1956, have been followed and there are no material departures from the same.

• the selected accounting policies were applied consistently and the Directors 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 as at 31^st March, 2013 and of profit the Company for the year ended as on that date;

• proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, to safeguard the assets of the Company and to prevent and detect fraud and other irregularities;

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

Auditors

M/ s. S. U. Radhakrishnani & Co., Chartered Accountants, the Statutory Auditors of the Company, hold office upto the conclusion of ensuing Annual General Meeting and are eligible for re-appointment. The Company has received a letter from them to the effect that their appointment, if made, would be within the limits prescribed under Section 224(1B) of the Companies Act, 1956.

Your Directors recommend their re-appointment as Statutory Auditors of the Company to hold office from the conclusion of ensuing Annual General Meeting upto the conclusion of the next Annual General Meeting of the Company and to audit financial accounts for the financial year ending on 31^st March, 2014.

Auditors Observations

Observations of the Auditors, read together with the relevant Notes to the Accounts and Accounting Policies are self explanatory.

Subsidiary Companies

The Company does not have any subsidiary Company.

Corporate Governance

Pursuant to Clause 49 of the Listing Agreement, a detailed report on Corporate Governance duly certified regarding compliances of its conditions by the Statutory Auditors M/ s. S. U. Radhakrishnani & Co., Chartered Accountants, is forming part of this Annual Report and separately attached.

Personnel

The employer employee relations remained cordial throughout the year. The Board places on record its sincere appreciation for the valuable contribution made by employees across all levels of the organization.

During the year under consideration, there were no employees, whose particulars are required to be furnished under the provisions of Section 217(2A) of the Companies Acts 1956 read with the rules thereunder.

Energy Conservation, Technology Absorption and Foreign Exchange Earnings and Outgo

Particulars required to be disclosed under the Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988 are set out in Annexure "A" to this report.

Acknowledgements

Your Directors wish to express their sincere gratitude to the Union Government and the Government of various States, as also to all the Government agencies, banks, financial institutions, customers, vendors and other related organizations, who, through their continued support and cooperation, have contributed towards the Companys growth and progress during the year under review.

Your Directors also wish to place on record their deep sense of appreciation for investors, shareholders and employees of the Company for their continued support towards conduct and operations of the Company.

	By Order of the Board of Directors
	For Indo Bonito Multinational Limited
	Director
Date 2nd September,2013
Place: - Mumbai

Annexure "A" to the Report of the Directors

Particulars as per the Companies (Disclosure of Particulars in the report of the Board of Directors) Rules, 1988 and forming part of the Directors Report for the Year ended 31^st March 2013.

A. Conservation of Energy Technology Absorption, Research & Development and resultant benefits:

Your Company believes in continual improvement through up-gradation of technology and adoption of latest manufacturing techniques. Your Company constantly upgrades / refurbishes its equipments to offer best quality products and minimise operating cost to improve the productivity & profitability.

Form A

A) Power and Fuel Consumption	UOM	2012-2013	2011-2012
1) Electricity
a) Purchased
Unit	(KWh)	NIL	NIL
Total Cost	(Rs. in Lacs)	NIL	NIL
Cost / Unit	(Rs.)	NIL	NIL
b) Own Generation
i) Through Diesel Generator Unit		NIL	NIL
ii) Through Steam Turbine Generation Units		NIL	NIL
iii) Through Wind Mill
Unit	(KWh)	NIL	NIL
Total Cost	(Rs. in Lacs)	NIL	NIL
Cost / Unit	(Rs.)	NIL	NIL
2) Coal
Quantity	Tonnes	NIL	NIL
Total Cost	(Rs. in Lacs)	NIL	NIL
Average Rate	(Rs.)	NIL	NIL
3) Furnace Oil
Quantity	K. Ltrs	NIL	NIL
Total Cost	(Rs. in Lacs)	NIL	NIL
Average Rate	(Rs.)	NIL	NIL
4) Others/Internal Generation
Quantity	K. Ltrs	NIL	NIL
Total Cost	(Rs. in Lacs)	NIL	NIL
Rate/ Unit	(Rs.)	NIL	NIL

B. Technology Absorption, Research & Development and resultant benefits:

Your Company believes in continual improvement through up-gradation of technology and adoption of latest manufacturing techniques. Your Company constantly upgrades / refurbishes its equipments to offer best quality products and minimise operating cost to improve the productivity & profitability.

C. Foreign Exchange Earnings & Outgo

(Rs. in Lacs)

Particulars	2012- 2013	2011-2012
Exports as a % of Total income	Nil	Nil
Total Foreign Exchange earned	Nil	Nil
Total Foreign Exchange outgo	Nil	Nil

 

	For and on behalf of the Board
	For Indo Bonito Multinational Limited
	Director
Date 2nd September,2013
Place: - Mumbai