| Dear Members,
The Directors have pleasure in presenting their Thirtieth Annual Report
together with the Audited Accounts of the Company for the Financial
Year ended March 31,2014.
1. Summary of Financial Results
The financial results of the company for the year ended 31.03.2014 are
given below:
(Rs. in Crores)
S. Particulars 2013-14 2012-13
No.
1 Loss before exceptional items (19.32) (13.21)
2 Exceptional items 54.90 1.92
3 Profit before tax 35.58 (11.29)
4 Tax expense
(a) Deferred Tax (.35) (0.34)
5 Profit/(Loss) for the year 35.93 (10.95)
6 Basic & diluted EPS 5.77 (2.89)
2. DIVIDEND:
As the company incurred operational losses during the year though there
is profit after exceptional items no dividend is recommended.
3. FUTURE OUTLOOK/PLANS:
Your Company could not restart various closed operations due to lack of
funds. The entire future planning depends on the decision of BIFR in
approving the revival scheme and the financial support and co-operation
of the Banks / Financial Institutions.
4. COMPANY UNDER BIFR:
The Hon'ble Board for industrial and Financial Reconstruction (BIFR)
has declared your company as a Sick industrial company within the
meaning of Clause (o) of sub-section (1) of Section 3 of the Sick
Industrial Companies (Special Provisions) Act, 1985 vide its order
dated 07.03.2007 and IFCI was appointed as Operating Agency (OA) under
section 17 (3) of the Act with directions to prepare a revival scheme
for the company.
After several hearings, the Board had directed the company to submit
DRS to the operating agency and the company had submitted DRS and the
case is pending before BIFR.
5. INDUSTRIAL RELATIONS:
Your Company maintains harmonious industrial relations at all levels in
the organization. It will be the constant endeavour of your Company to
continue to maintain the good industrial climate.
6. ENERGY, TECHNOLOGY, FOREIGN EXCHANGE:
Information in accordance with the provisions of Section 217(1 )(e) of
the Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988 do not arise as there are no operations during
the year under review.
7. DIRECTORS:
Shri. V Saravanan director of the company retires by rotation at the
forth coming annual general meeting and being eligible offers himself
for reappointment. Board recommends his re-appointment.
8. PARTICULARS OF EMPLOYEES:
During the year, there were no employees drawing remuneration as per
limits specified under section 217 (2A) of the Companies Act, 1956,
read with Companies (Particular of Employees) Rules, 1975.
9. DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to the requirement under Section 217 (2AA) of the Companies
Act, 1956 with respect to Directors' Responsibility Statement, it is
hereby confirmed:
i) that in the preparation of the annual accounts for the year ended
March 31, 2014 the applicable accounting standards had been followed
along with proper explanation relating to material departures;
ii) that in the accounting policies implemented by the Company have
been applied consistently, judgements and estimates have been
reasonable and prudent thereby giving a true and fair view of the state
of affairs of the Company at the end of the 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 for preventing and detecting fraud and other
irregularities;
iv) that the annual accounts were prepared for the year ended March
31,2014 on a 'going concern' basis.
10. Listing of Shares with the Stock Exchanges
The shares of your Company are listed with the following Stock
Exchanges:
The Madras Stock Exchange Limited BSE Limited
The Stock Exchange, Ahmedabad
Trading of company's equity shares was suspended from Trading in Mumbai
Stock Exchange due to non compliance of Clause 41 of the Listing
Agreement and non-payment of Listing Fees.
11. Auditors
M/s PA Reddy & Co., Chartered Accountants, Nellore and M/s CNGSN &
Associates, Chartered Accountants, Chennai Auditors of the company hold
office until the conclusion of the ensuing Annual General Meeting and
are eligible for re-appointment.
With respect to the various observations made by the Auditors in their
Report, the Board of Directors wishes to express the following views:
i. The Company has closed most of the bank accounts which are not in
operation over the years. Necessary steps are being taken to close the
balance nine bank accounts which are not in operation. [Refer point no.
iv (a) of Auditor's Report]
ii. The Company has extended Corporate Guaranty to a Body corporate in
the earlier years which has been invoked. The Company is confident that
as per the Settlement Scheme offered by the said Body Corporate to
their lenders, the amount due as perthe guarantee will be settled.
Hence, the Company has not made any provisions for the same. [Refer
point no, iv(b) of Auditor's Report]
iii. As regards to the disputed Income Tax & Sales Tax, the company has
appealed before various forums and the company is confident that would
be in its favor. The company is seeking certain reliefs / concessions
from Central / State Government. [Refer SI No. ix(b) of Annexure to
Auditor's Report].
12. Corporate Governance
A Report on Corporate Governance along with Auditor's Certificate is
annexed herewith.
13. Acknowledgement
The Board hereby acknowledge the support from various Government
Departments and their Agencies, Hon'ble BIFR, Financial Institutions,
Banks, Shareholders, Debenture Holders and Customers. The Directors
have pleasure in placing on record their heartfelt appreciation to all
the Employees of the Company.
By Order of the Board
For BALAJI INDUSTRIAL CORPORATION LIMITED
Place: Chennai S V NAGARAJA REDDY V SARAVANAN
Dated: 27th May, 2014 DIRECTOR (00124414) DIRECTOR (00068562) |