ncl alltek seccolor ltd Directors report

DIRECTOR

Your Directors have pleasure in presenting their report for the financial year ended 31sl March, 2014.

FINANCIAL RESULTS

The Audited Balance sheet of your Company as at 31s March, 2014, the Statement of Profit & Loss for the year ended on that date and the report of the Auditors thereon are being circulated with this report. The salient features of the financial results arc as follows:

	Year ended	Year ended
	31.03.2014	31.03.2013
	Rs. in lakhs	Rs. in lakhs
Gross Sales and Other Income	15959	14652
Profit before Interest	1996	1855
& Depreciation
Profit before tax	1368	1201
Profit after Tax	893	812
Proposed Dividend	289	260
Transfer to General Reserve	625	550

OPERATIONS

The turnover of the company increased by about 9% with increase of 10% in the profitability of the company. However efforts would continue to improve the efficiencies and reduction of costs.

Your Directors are contemplating several measures to improve the profitability, including enhancement in the capacities of the UPVC windows in Seccolor Division and cement based low weight bricks (AAC Blocks) in the Alltck Division, which are showing more growth prospects.

DIVIDEND

Keeping in view the level of profitability, your Directors recommend for your consideration a dividend of Rs 5.00 per equity share for the year ended 31.03.2014, as against Rs 4.50 per equity share in the previous year aggregating to an amount of Rs 338.40 lakhs including Dividend Distribution Tax.

FIXED DEPOSITS

The Ministry of Corporate Affairs has notified Companies (Acceptance of Deposits Rules) 2014 which came into force w.e.f 01/04/2014.

As per the Rules, new norms in terms of capital and turnover have been prescribed for eligibility to accept deposits from public. Your company falls outside these norms, and hence is not eligible to accept deposits from the Public. However, the company is eligible to accept deposits only from members in terms of the new provisions. Appropriate procedural formalities arc being completed in this regard. Henceforth, deposits shall be accepted within the permissible ceilings only from members.

As on 31" March, 2014, Rs 270.78 lakhs of Deposits of Public/Shareholders are outstanding. The Company repaid all the matured deposits, which have been claimed during the year. There are no unclaimed deposits and no default is made by the Company in the Payment of Interest and any principal amounts.

AUDITORS

M/s. K.R. Bapuji & Co. Chartered Accountants, Hyderabad, the Auditors of the Company retire at the conclusion of this Annual General Meeting and are eligible for re-appointment. Your Directors propose that M/s. K.R. Bapuji & Co. Chartered Accountants be reappointed as auditors of the Company to hold such office from the conclusion of this Annual General Meeting, until the conclusion of sixth Annual General Meeting to be held after this meeting, subject to ratification at every Annual General meeting.

DIRECTORS

Mr. K Jayabharat Reddy.Chairman, Mr. M Kanna Rcddy and Mr. V Sundarcsan, Directors are Independent Directors, already in the Board of Directors. Resolutions arc being proposed to formally designate them as Independent Directors under Section 149 of the Companies Act, 2013, and tlx a tenure of five years from the date of the ensuing Annual General Meeting.

Mr. K S Narayana Rao has resigned as a Director with effect from 23 August 2014. Mr. Sudhcer Kanumilli has been appointed as a Director on the same day to fill the Casual Vacancy caused by the resignation of Mr. K S Narayana Rao.

Mr. Ashven Datla and Mr. Tarun Sandcep retire by rotation and arc eligible for re- appointment.

DIRECTORS RESPONSIBILITY STATEMENT

Your Board in pursuance of Section 217 (2AA) of the Companies Act, 1956 in respect of Directors Responsibility Statement hereby confirms.

i) That in the preparation of the accounts for the financial year ended 31s March 2014 the applicable accounting standards have been followed along with proper explanation relating to material departures.

ii) That the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that were reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit or loss of the company for the year under review.

iii) That the Directors have taken proper and sufficient care 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 and detecting fraud and other irregularities.

iv) That the Directors have prepared the accounts for the financial year ended 31s March 2014 on a going concern basis.

PARTICULARS OF EMPLOYEES

There are no employees drawing remuneration as provided in Section 217 (2A) of the Companies Act, 1956, as amended upto date, whose particulars forming part of this report is to be annexed.

CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE.

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 regarding conservation of energy, technology absorption and foreign exchange earnings and outgo is given in the annexure forming part of this report.

ACKNOWLEDGEMENTS

Your Directors would like to express their grateful appreciation for the co- operation and assistance received from State Bank of Hyderabad, Industrial Finance Branch, Punjagutta, Corporation Bank and Government Authorities during the year. Your Directors wish to place on record their sincere appreciation for the devoted services of the employees at all levels.

	For and on behalf of the Board
	For NCL Alltek & Seccolor Ltd.
Place: Hyderabad	K. Jayabharath Reddy
Date: 23.08.2014	Chairman

ANNEXURE TO DIRECTORS REPORT

Information pursuant to the section 217(1) (e) of the Companies Act, 1956 read with the Companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988.

A. CONSERVATION OF ENERGY:

The Industry is not energy intensive. However, efforts are made to conserve energy at every possible area.

B. TECHNOLOGY ABSORPTION:

FORM-B (See Rule 2)

Form for disclosure of particulars with respect to absorption. Research and development (R&D)

1. Specific areas in which R&D carried out by the company:

a) Work was done to improve the quality and range of emulsion paints and exterior Spray Plasters.

b) Improving the quality of window accessories and range of sections for windows and doors.

2. Benefits derived as a result of the above R&D: Wider Range of Superior Quality Products.

3. Future plan of action: Constant improvement in quality, reduction of production cost.

4. Expenditure on R&D:

Capital	: Nil
Recurring	: 5.58 lakhs
Total	: 5.58 lakhs

Total R&D expenditure as a percentage of total turnovers: 0.035%

TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION.

Know how for production of cement renders and other related products were provided by Mr. Eje Sidmor of Sweden. The technology has been absorbed resulting in development of wide range of products.

C. FOREIGN EXCHANGE EARNINGS AND OUTGO:

1. Activities relating to Exports, initiatives taken to increase export market for products and services and export plans: Nothing to report.

2. Total Foreign Exchange

Earnings	: Nil
Outgo	: 1.38 lakhs

 

	For and on behalf of the Board
	For NCL Alltek & Seccolor Ltd.
Place: Hyderabad	K.Jayabharath Reddy
Date: 23.08.2014	Chairman