omni dye chem exports ltd Directors report

OMNI DYE CHEM EXPORTS LIMITED ANNUAL REPORT 2005-2006 DIRECTORS REPORT To The Members, Your Directors have pleasure in presenting the Thirteenth Annual Report together with Audited Statement of Accounts of the Company for the financial year 31st March, 2006. FINANCIAL RESULTS: Rs. In Lacs Particulars Current Year Previous Year Sales/Income from operation 423.63 417.77 Other Income 10.20 15.58 Profit/(loss) before Depreciation (7.65) (18.79) Depreciation 25.95 26.34 Loss after Depreciation 33.60 45.13 Loss before taxation 33.60 45.13 Loss after Taxation 232.53 (10.86) Balance carried to Balance Sheet 199.53 432.06 DIVIDEND: In view of the loss, your Directors are unable to recommend dividend for the year under review. DEPOSITS: During the year under review, the Company has not accepted am. deposits from the public. DIRECTORS: Shri Rahul Patel Director of the Company retires by rotation and being eligible offers himself for the re-appointment. Brief resume of the Director retiring by rotation at the ensuing Annual General Meeting, nature of the experience in specific functional areas and names of the Companies in which they hold the directorship and the membership/chairmanship of committees of the Board, as stipulated under clause 49 of the Listing Agreement with Stock Exchange, are given in the section on Corporate Governance elsewhere in the Annual Report. DIRECTORS RESPONSIBILITY STATEMENT: Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956 with respect to Directors Responsibility Statement, your Directors confirm: (i) That in preparation of the annual accounts, all the applicable accounting standards have been followed; (ii) That the Directors have selected such accounting policies and applied them consistently and made judgements 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 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 preventing and detecting fraud and other irregularities; and (iv) That the Directors have prepared the Annual Accounts for the financial year ended 31st March, 2006 on a `going concern basis. MANAGEMENT DISCUSSION AND ANALYSIS: Management Discussion and Analysis Report as required under the Listing Agreement with the Stock Exchange is annexed hereto. CORPORATE GOVERNANCE: The report on Corporate Governance as required under Clause 49 of the Listing Agreement is annexed hereto. AUDITORS: The shareholders are requested to re-appoint M/s. Mehra Anil & Associates, Chartered Accountants, as the Auditors of the Company and to fix their remuneration. The Company has received a letter from the said Auditors to the effect that their re-appointment, if made, would be within the prescribed limits under Section 224(1-B) of the Companies Act, 1956. Notes forming part of Accounts are self-explanatory and therefore, do not call for any further comments. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION ETC.: 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 the particulars relating to conservation of energy, technology absorption and foreign exchange earnings and outgo are annexed as Annexure-`A. PARTICULARS OF EMPLOYEES: There was no employee drawing remuneration in excess of limits prescribed under Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975. ACKNOWLEDGEMENT: Your Directors would like to place on record their grateful appreciation for assistance and cooperation received from the Banks, Government Authorities and Shareholders during the year under review. Your directors also express their deep sense of appreciation for the devoted services of the staff members and workers of the company. For and on behalf of the Board of Directors Sd/- Place: Ahmedabad Satish C. Brahmbhatt Date : 05.08.2006 Chairman & Managing Director ANNEXURE-`A TO DIRECTORS REPORT Information required under Companies (Disclosure of Particular in the Report of the Board of Directors) Rules, 1988: A. CONSERVATION OF ENERGY: The company endeavored to improve method of energy conservation and utilization through continuous monitoring of fuel and energy consuming machinery. POWER AND FUEL CONSUMPTION: 2005-06 2004-05 1. Electricity: a. Purchased Units 2000790 346870 Total Cost (Rs.) 1306797 1643106 Rate/Units (Rs.) 4.719 4.737 b. Own Generation: Through Diesel Generating Set (LDO/FO): Quantity (KL) 6520 10900 Total Cost (Rs.) 169384 212734 Average Rate/KL 25.98 19.52 2. Oil: In Thermic Heater: Quantity (Liters) - - Total Cost (Rs.) - - Average Rate/Litre - - 3. Consumption per kg. of production: Electricity (Units) 4.247 4.121 LDO (KL) 18.04 13.11 B. Technology Absorption, Research & Development (R&D): Chapter 2 Specific areas in which R & D carried out by the company: - Improvement of product quality. - Process Improvement. - Cost Effectiveness. Chapter 3 Benefits derived as a result of the above R & D: Improvement in yield and product quality. Chapter 4 Future plan of action: The companys efforts will continue in the areas of new product development, technology and packing. Technology absorption, adaptation & innovation: (i) The company is using indigenous technology (ii) The product is now well accepted in the market due to techno- economical development achieved by the company. C. Foreign Exchange Earnings and Outgo: The company generated Foreign Exchange Earnings (though direct & indirect exports) of Rs.3,30,79,072/- through exports and earned export incentives and credit of Rs.7,21,962/-. There was no Foreign Exchange Outgo during the year.