The Directors have pleasure in presenting their 40th Annual Report
along with the audited accounts for the year ended March 31, 2011.
FINANCIAL RESULTS :
2010-2011 2009-2010
(Rs in lakhs)
Turnover 7930.21 6122.91
Operating Profit for the year 1207.87 440.01
Depreciation for the year 287.27 296.05
Net Profit for the year before tax 920.60 143.96
Less: Provision for taxation and
Income tax of earlier years 170,20 25.99
Deferred tax liability 409.28 -
Net Profit after Tax 341.12 117.97
Balance of Profit brought 2380.25 2262.28
forward from previous year
Balance of Profit carried forward 2721.37 2380.25
BUSINESS REVIEW :
During the year under review, the business turnover increased by about
30% compared to the previous year. Margins have also improved over the
previous year, though lower than potential.
Unstable political environment in Andhra Pradesh, frequent bandhs and
strikes in the last one year have affected hospitality and tourism
industry adversely.
Margins are likely to be impacted by continuing inflation, oil price
volatility and raising payroll costs.
The Indian economy though inherently stronger than most other
countries, continues to face uncertainty and volatility because of the
adverse macro economic scenario in global markets.
However, the long term outlook for the industry appears to be bright
despite short term concerns.
DIRECTORS' RESPONSIBILITY STATEMENT :
In accordance with Section 217(2AA) of the Companies Act, 1956, the
Directors of the Company hereby state that:
- In the preparation of the Annual Accounts, the applicable accounting
standards have been followed and that there are no material departures.
- The Directors had, in consultation with the Statutory Auditors,
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
March 31, 2011 and of the profit of the Company for that year.
- The Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act for safeguarding the assets of the
Company and for preventing and detecting fraud and other
irregularities, to the best of knowledge and ability of the Directors.
- The Directors had prepared the annual accounts on a going concern
basis.
ENERGY, TECHNOLOGY AND FOREIGN EXCHANGE EARNINGS AND OUTGO :
Constant efforts are being made to reduce energy consumption through
energy saving devices, employee awareness and effective monitoring.
Disclosure of particulars with respect to conservation of energy,
technology absorption is not applicable to the Company for the time
being In compliance with Section 217 (1) (e) of the Companies Act,
1956, and the Rules framed there under. Details of income and
expenditure in foreign currency, during the year are given in the Notes
to Accounts.
DIRECTORS :
Pursuant to the provisions of the Articles of Association of the
Company, Sri Ch. Kiron and Sri P. Satyaprakash Reddy, retire by
rotation and being eligible, offer themselves for reappointment.
AUDITORS :
M/s. Brahmayya & Co., Statutory Auditors of your Company, retire at
this meeting and are eligible for reappointment. Regarding the
observation about the outstanding Sales Ta x and property tax
liability, your Directors wish to state that steps are being taken to
pay the amount, after obtaining relevant clarifications. Regarding non
provision of arrears of interest on promoters loans, the Directors wish
to clarify that these loans were brought in as their contribution for
financing the Hotel Projects at Ramoji Film City during 1995 to 2001
and no interest was provided or paid to the promoters for the past
period, as per the terms of the loan agreements with the financial
institutions and banks since the loans were treated as quasi equity.
However, interest for the current period is being paid to the promoters
since FY 2006, after obtaining relevant approvals.
SECRETARIAL COMPLIANCE CERTIFICATE :
Pursuant to the provisions of Section 383 A of the Companies Act, 1956,
and the Rules framed there under, a Compliance Certificate from a
Company Secretary in whole time practice is attached to this report.
PERSONNEL :
Your Directors wish to place on record their sincere appreciation to
all the employees for their dedication, teamwork and commitment, during
the year under review. There are no employees who are covered by
Section 217(2A) of the Companies Act, 1956.
Your Directors also gratefully acknowledge the continued support and
cooperation extended to the Company by Union Bank of India.
For and on behalf of the
Board of Directors
Place : Ramoji Film City, RAMOJI RAO
Date : 06.09.2011. Chairman |