jayavant products ltd Directors report

JAYAVANT PRODUCTS LIMITED ANNUAL REPORT 2011-2012 DIRECTORS REPORT The Directors present their 18th Annual Report on the business operations of the Company alongwith the Statement of Audited financial statements for the year ended 31st March 2012. FINANCIAL RESULTS: Particulars (Rs. in lacs) Year ended Year ended 31st March 2012 31st March 2011 Total Income 9.11 17.87 Profit/(Loss) before Interest, Depreciation & 2.29 0.58 Taxation Less: Interest 0.00 0.00 Profit/(Loss) before Depreciation 2.29 0.58 Less: Depreciation 0.00 0.00 Profit/(Loss) before Tax 2.29 0.58 Less: Provision for Tax (Including earlier year tax) 0.19 1.04 Net Profit/(Loss) after Tax 2.10 1.62 YEAR UNDER REVIEW: During the year under review, the Company continued the same line of business, registering total income of Rs. 9.11 lacs as against Rs. 17.87 lacs in the previous year. The Company reported net profit of Rs. 2.10 lacs as against net profit of Rs. 1.62 lacs in the previous year. DIVIDEND: In view of insignificant profit during the year, your directors, in order to conserve the resources, have not recommended any dividend for the year ended 31st March, 2012. DIRECTORS RESPONSIBILITY STATEMENT: Pursuant to Section 217(2AA) of the Companies Act, 1956 the Board of Directors confirms that: * in the preparation of the annual accounts, the applicable accounting standards have been followed; * they have selected such accounting policies 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 as at 31st March, 2012 and of the profit of the Company for that year; * they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act, for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; and they have prepared the attached Statement of Accounts for the year ended 31st March, 2012 on a going concern basis. DIRECTORS: Mr. Prakash Bihani, director of the company, retire by rotation at ensuing Annual General Meeting and being eligible offers themselves for re- appointment. Mr. Prakash Bihani has in depth knowledge of stock market as well as yarn market. He has more than 30 years experience in business and administration. He is not a director in an/ other company or holds any shares in the company. He is member of the committees constituted by the Board for effective corporate governance, the details thereof are mentioned in Report on Corporate Governance forming part of this Annual Report. CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION AND ANALYSIS: A report on the Corporate Governance and Management Discussion and Analysis is attached as a part of the Annual Report. The Auditors Certificate regarding compliance of the conditions of Corporate Governance is also annexed. AUDITORS: M/s. R. S. Agrawal & Associates, Chartered Accountants, the auditors of the Company retire at the ensuing Annual General Meeting and are eligible for re-appointment. The company has received a certificate from the auditors to the effect that their appointment, if made, would be within the prescribed limits under Section 224 (1B) of the Companies Act, 1956. The members are requested to appoint the auditors and authorize the Board to fix their remuneration. AUDITORS REPORT: Pursuant to section 217(3) of the Companies Act, 1956, information and explanations of the Board of Directors for observations made in Auditors Report are under: The Company is in the process of complying with the provisions of section 372A of the Companies Act, 1956. FIXED DEPOSITS: The Company has not accepted any deposit from public during the year under review. PARTICULARS OF EMPLOYEES: During the year under review, none of the employees of the company was in receipt of remuneration aggregating Rs. 24,00,0007- or more per annum, if employed throughout the year, or Rs. 2,00,000/- or more per month, in case employed for part of the year. Hence, there are no particulars to be annexed to this report as required under Section 217 (2A) of the Companies Act, 1956 and the rules made there under. , CONSERVATION OF ENERGY, RESEARCH & DEVELOPMENT, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO: (A) Conservation of Energy Research & Development and Technology Absorption: Considering the Companys existing business activities, your directors have nothing to state in connection with Conservation of Energy Research & Development and Technology Absorption. (B) Foreign Exchange Earnings & Outgo: During the year under review, no foreign exchange has been earned and /or expended by the company. ACKNOWLEDGEMENTS: The Directors wish to express their gratitude to the bankers, clients and all the business associates for their continuous support to the Company and to the shareholders for the confidence reposed in the Companys management. The directors also convey their appreciation to the employees at all levels for their enormous personal efforts as well as collective contribution. For and on Behalf of the Board JAYAVANT PRODUCTS LIMITED Deven J. Mehta Director Jitendra Mehta Director Place: Mumbai Date : 30th May 2012 MANAGEMENT DISCUSSION AND ANALYSIS INDUSTRY STRUCTURE AND DEVELOPMENTS The Company had been engaged in the manufacture of hill grass brooms, which are household consumable. Now after selling the manufacturing unit, the Company is presently engaged in financial services as well as carrying on providing non-fund based services on brokerage and commission basis. The presently line of activities in the service sector has vast opportunities which will be available to the Company. OPPORTUNITIES AND THREATS Basically the grass business is dependent on various factors like the daily fluctuation of the prices, dealing with the illiterate class of the cultivators, competition from the unorganized, weather conditions, Government Policies etc., which are unpredictable and uncertain. In the light of above, your Company is focusing more on the activities, which does not require funds like the business on brokerage and commission basis. Viability of undertaking diversified business activities with better prospects are examined on regular basis. OUTLOOK Your Company is evaluating new business proposals related to diversified service segments with sound future outlook and immense potentials. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY The internal control systems as well as procedures adequately commensurate with the magnitude of its current business. The operating and business control procedures have been framed in order that they ensure efficient use of resources and comply with the procedures and regulatory requirements. The internal control system is being further strengthened by constantly updating the guidelines, approval and authorisation procedures. HUMAN RESOURCES The Company had enjoyed cordial professional relations with employees at present service activities require very low number of employees. at all levels. The present service activities erquire very low number of employees.