Dear Shareholders,
The Directors present the 29th Annual Report on the operations of your
Company together with Annual Audited Accounts for the year ended 31st
March, 2014.
FINANCIAL RESULTS
(Rs. in Lacs)
Current Year Previous Year
Sales 1680.75 1952.95
Profit/(Loss) before Financial
Charges & Depreciation 62.99 38.95
Less : Financial Charges 4.96 4.40
Less : Depreciation 64.11 65.35
Profit/(Loss) Before tax (6.08) (30.80)
Provision for Tax - -
Profit/(Loss) after tax (6.08) (30.80)
Add : Brought forward Profit/(Loss) (2151.72) (2120.92)
Balance Carried to Balance Sheet (2157.80) (2151.72)
OPERATIONS
During the year under review, the total sales of your Company were
Rs.1680.75 lacs as against Rs.1952.95 lacs for the previous year. The
Profit before financial charges and depreciation amounted to Rs.62.99
lacs as compared to Rs.38.95 lacs in the previous year. The net loss
for the year was Rs.6.08 lacs as compared to Rs 30.80 lacs during
previous year.
DIVIDEND
Your directors regret their inability to propose any dividend in view
of the loss for the year under review.
CURRENT YEAR'S PERFORMANCE
The Company is focusing on Lighting Electronics business. In the 1st
quarter ended June, 2014 the Company has recorded sales of Rs.465.17
lacs as compared to Rs.515.63 lacs for the corresponding period last
year. The Company is hopeful of improving the situation substantially
in coming quarters.
RESEARCH & DEVELOPMENT
The Research and Development Centre of your Company has been providing
useful support towards developing of new products and improving quality
of existing products. We have successfully developed many products in
Lighting Electronics Industry which have been approved by International
Certification Laboratory of Osram, the major customer of the Company.
CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION, FOREIGN EXCHANGE
EARNING AND OUTGO
The detailed information as required Under Section 217(1) (e) of the
Companies Act, 1956 read with Companies (disclosure of particulars in
report of the Board of Directors) Rules 1988, is enclosed as per
Annexure-I.
DIRECTORS
Shri Aijaz Ghaffar will retire at the ensuing Annual General Meeting
and being eligible, offers himself for re-appointment. The Board of
Directors have appointed Mr. Ajay Kumar Singhal, as additional Director
w.e.f. August 13, 2014, on the Board of the Company at their meeting
held on August 13, 2014, subject to his regular appointment in the
Annual General Meeting. In accordance with the Articles of Association
of the Company and the Companies Act, 2013, Mr. Ajay Kumar Singhal
holds office till the ensuing Annual General Meeting. The Company has
received Notice in respect of Mr. Ajay Kumar Singhal from a member
under Section 160 of the Companies Act, 2013 proposing his appointment
as Director of the Company liable to retire by rotation.
Consequent to notification of Section 149 and other applicable
provisions of the Companies Act, 2013, your Directors are seeking
appointment of all Independent Directors viz Mr Sunil Kumar
Bhattacharya, Mr Hamidulla Kabir Khan and Mr Bharat Bhushan Jain for
five consecutive years from the ensuing Annual General Meeting and they
shall not be liable to retire by rotation. The Company has received
Notices in respect of aforesaid Directors under Section 160 of the
Companies Act, 2013 proposing their appointment as Independent
Directors of the Company.
Your Directors recommend the re-appointment/ appointment of the above
Directors at the ensuing Annual General Meeting. The information on the
particulars of Director eligible for re-appointment/appointment in
terms of Clause 49 of the Listing Agreement has been provided in the
notes to the notice convening the Annual General Meeting.
DIRECTORS' RESPONSIBILITY STATEMENT
In pursuance of Section 217(2AA) of the Companies act, 1956, the
Directors would like to assure the Members that the financial
statements for the year under review, confirm in their entirety to the
requirements of the Companies Act, 1956.
The Directors confirm:
1. that in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
2. that the directors had 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 at the end of the financial year 2014 and of
the loss of the company for that period;
3. that the directors had 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 fraud and other irregularities;
4. that the directors had prepared the Annual Accounts on a going
concern basis.
MANAGEMENT DISCUSSION AND ANALYSIS
A report in the form of Management Discussion and Analysis pursuant to
clause 49 of the listing agreement, as a part of this report is annexed
hereto as Annexure - II.
CORPORATE GOVERNANCE
A separate section on Corporate Governance forming part of the
Directors' Report and the certificate from the auditors of the Company
confirming the compliance of Clause 49 of listing agreement is included
in the annual report.
A Certificate has been given by the Chairman & Managing Director and
Manager (Finance & Accounts) to the Board, as per requirement of Clause
49 (V) of the Listing Agreement is attached to the report.
REFERENCE TO BIFR
The Company was declared Sick in April, 2006 by Hon'ble Board for
Industrial & Financial Reconstruction (BIFR) and Bank of India had been
appointed as Operating Agency to work out a Rehabilitation Plan and
submit the same to the Hon'ble BIFR. The Company/Promoters have settled
with all Secured Creditors and payments are being made in line with
agreed terms. The draft Rehabilitation Scheme submitted by the Company
has been sanctioned by BIFR. Pursuant to the said sanction, the loans
taken over by the Promoters and the Strategic Investor have been
converted into Unsecured Zero Coupon Convertible Bonds of Rs. 1000/-
each ("Bonds") and the said Bonds shall be converted into equity shares
of the Company of Rs. 10/- each at a premium of Rs. 20/- each in a
phased manner.
BIFR has declared the company as a "Relief Undertaking" and grants all
benefits and concessions relating to deferment of Sales Tax for a
period of 5 years as per the State Government policy guidelines for
sick industrial units. BIFR has also granted other reliefs including
exemption / grant of relief to the Company from certain provisions of
the Income Tax Act and waiver of interest / damages on delayed payments
of PF or ESI (subject to consideration of respective authorities).
AUDITORS
The retiring Auditors of the Company M/s. Shanti Prashad & Co.,
Chartered Accountants, retire at the conclusion of the ensuing Annual
General Meeting and being eligible, offer themselves for
re-appointment. The Company has received a certificate from them that
their re-appointment, if made, would be within the prescribed limits
under Section 139 read with Section 141 of the Companies Act, 2013.
AUDITORS' OBSERVATIONS
The Auditors in their report have invited attention on Emphasis of
Matter Paragraph of Notes on Accounts-Note No.6 and 16. The notes are
self-explanatory. However directors would like to inform you that:
(a) Regarding Point No. 6, the accounting treatment has been done in
line with the scheme sanctioned by Hon'ble BIFR.
(b) Regarding Point No.16, receivables outstanding for more than 6
months, the Management is trying its best to recover the receivables in
full; hence no provision has been made.
COST AUDITORS
The Board has re-appointed M/s N.N. Sharma & Associates as the Cost
Auditors of the Company in accordance with Section 233B of the
Companies Act, 1956 and in conformity with the directives of the
Central Government, for the audit of the cost accounts of the Company
for the Financial Year 2013-14. The Cost Audit Report for the financial
year 2012-13 has been filed with the Central Government within the
stipulated time on September 27, 2013.
PERSONNEL
The employee relation in your company continues to be excellent.
Employee participation in various improvement programs initiated by the
company is encouraging.
PARTICULARS OF EMPLOYEES
Provisions of section 217(2A) of the Companies Act, 1956 read with
Companies (Particulars of Employees) Rules, 1975 are not applicable
since there are no employees drawing remuneration exceeding limits
prescribed therein.
COMPLIANCE CERTIFICATE
The Company has obtained the Compliance Certificate pursuant to Section
383A of the Companies Act, 1956 from a Practicing Company Secretary and
forms annexure to this Report.
ACKNOWLEDGEMENT
Your Directors are grateful to the various Government Authorities,
Financial Institutions and Banks, Business Constituents and
Shareholders for their continued co-operation and support to the
Company.
Your Directors also express their deep appreciation of the devoted and
unstinted services tendered by workers, staff and executive at all
levels.
For and on behalf of the
Board of Directors
S.K. MALIK
CHAIRMAN & MANAGING DIRECTOR
Place: New Delhi
Date: August 13, 2014
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