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Directors Report of CIL Nova Petrochemicals Ltd.

Mar 31, 2015

Dear Members,

The Directors are pleased to present their 11th Annual Report together with the Audited Financial Statements for the period ended 31st March, 2015.

FINANCIAL PERFORMANCE

The financial performance of the Company for the period ended is summarized below:

(Rs in crores )

Particulars 2014-15 2013-14

Sales & Services 243.01 316.97

Other Income 0.50 1.01

Total Income 243.52 317.98

Total Expenses 238.44 314.11

Profit/(Loss) Before Tax 5.08 3.87

Less : Tax Expense

Current Tax 1.07 0.79

Deferred Tax 0.00 0.00

Short Provision of Income 0.00 0.17 Tax of Earlier Years

Profit/(Loss) After Tax 4.02 2.90

PERFORMANCE HIGHLIGHTS

During the year under review, net turnover decreased from Rs 316.97 crore to Rs 243.01 crore . The profit before tax was at Rs 5.08 crore as against previous year profit before tax of Rs 3.87 crore . The profit after tax was at Rs 4.02 crore as against a profit of Rs 2.90 crore over the previous year. The increase in profit is due to reduction in international crude price and reduction in financial charges and depreciation.

TRANSFER TO RESERVES

The Company proposes to transfer Rs4 crores to the Preference Share Redemption Reserve, out of the amount available for appropriation.

DIVIDEND

Your Directors do not recommend any dividend on equity share for the period ended 31st March,15 considering the current position of the Company.

FIXED DEPOSITS

During the year under review your Company has not accepted any fixed deposits within the meaning of Section 73 of the Companies Act,2013 read with rules made thereunder.

TRANSFER OF UNCLAIMED AND UNPAID DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND

During the year the Company has fulfill its obligation that had been arise due to demerger of Nova Petrochemicals Limited by transferring its portion of Unclaimed and Unpaid Dividend of Rs 3,38,715 which was originally declared by GSL Nova Petrochemicals Limited (Formerly known as Nova Petrochemicals Limited) into Investor Education and Protection Fund.

REDEMPTION OF PREFERENCE SHARES

The Board of Directors at their meeting held on 14th August,2015 approved the redemption of preference shares. Pursuant to the terms of issue such shares are redeemable after the expiry of 5 years at the option of the Company from the date of issue and maximum tenure of preference shares were of 10 years from the date of the issue and period of 5 years has completed and therefore the board has decided to redeemed such shares.

Directors retiring by rotation

In accordance with the provisions of the section 152 Companies Act,2013 and Companies Articles of Association, Mr. Vedprakash ChiripaL (DIN 00290454 ) , retires by rotation and being eligible, offer himself for re-appointment at the ensuing Annual General Meeting of the Company. Necessary resolution for their re-appointment is placed before the shareholders for approval. Brief details of Directors proposed to be appointed/ re-appointed as required under Clause 49 of the Listing Agreement are provided in the notice of the Annual General Meeting of the Company.

Declaration from Independent Directors

Your Company has received declarations from all the Independent Directors confirming that they meet the criteria of independence as prescribed under the Section 149(6) of Companies Act, 2013 read with Rules made thereunder as well as Clause 49 of the Listing Agreement.

Company's Policy on appointment and remuneration of Directors

Appointment of Independent Directors

Pursuant to the provisions of section 149 of the Act, which came into effect from 1st April,2014 Mr. Ambalal Patel, Mr. Rajendraprasad Shah, Mr. Murli Goyal and Ms. Renu Siddhu, were appointed as Independent Directors at the annual general Meeting of the company held on 20th September,2014.

Criteria for appointment of Independent Directors

The Independent Directors shall be of high integrity with relevant expertise and experience in the fields of manufacturing, marketing, finance, taxation, law, governance and general management, so as to have a diverse Board.

Criteria for appointment of Managing Directors/ Whole Time Directors

The Nomination and Remuneration Committee shall identify persons of integrity who possess relevant expertise and experience, leadership qualities required for the position and shall take into consideration recommendation, if any, received from any member of the Board.

Remuneration Policy

The Company follows a policy on remuneration of Directors and Senior Management Employees, details of the same are given in the Corporate Governance Report.

Board Evaluation

The Board adopted a formal mechanism for evaluating its performance and as well as that of its Committees and individual Directors, including the Chairman of the Board. The exercise of performance evaluation was carried out covering various aspects of Board functioning such as Composition of the Board and its Committees, Board Culture , performance of special duties, governance & compliance issues, attendance , contribution at meetings. The performance evaluation of the Independent Directors was also carried out. The performance evaluation of the Chairman and Non-Independent Directors was carried out by the Independent Directors. The Board of Directors expressed their satisfaction with the evaluation process.

Key Managerial Personnel

During the year under review, Mr. Pradip Khandelwal - Chief Executive Officer, Mr. Satish Bhatt - Chief Financial Officer and Mr. Romin Shah - Company Secretary were designated as Key Managerial Personnel pursuant to the requirements of the applicable provisions of Companies Act, 2013 read with rules made thereunder.

VIGIL MECHANISM

The Company has formulated a vigil mechanism (whistle blower policy) for its directors and employees for reporting genuine concerns about unethical practices and suspected or actual fraud or violation of the Company's code of conduct as prescribed under the Companies Act, 2013 and Clause 49 of the Listing Agreement. The purpose of this mechanism is to provide platform to all directors, employees, business associates, stakeholders to come forward and express their concerns about unethical behavior, suspected fraud, violation of Code of Conduct without any fear of unfair treatment with them.

RISK MANAGEMENT

The Board of the Company has formed Risk Management Committee which have been entrusted with the responsibility to assist the Board in following matters such as Overseeing and approving the Company's enterprise wide risk management framework . Overseeing that all the risks that the organization faces such as strategic, financial, credit, market, liquidity, security, property, IT, legal, regulatory, reputational and other risks have been identified , assessed and necessary measures being taken to mitigate such risks.

RELATED PARTY TRANSACTIONS

All contracts / arrangements / transactions entered by the Company during the financial year with related parties were in the ordinary course of business and on an arm's length basis. Thus disclosure in form AOC-2 is attached as Annexure-C. During the year, the Company had not entered into any contract / arrangement / transaction with related parties which could be considered material in accordance with the policy of the Company on materiality of related party transactions. All Related Party Transaction are placed before the Audit Committee and also to the Board for approval. Omnibus approval was obtained on a quarterly basis for transactions which are in repetitive nature.

CORPORATE GOVERNANCE

A separate report on Corporate Governance and Management Discussion and Analysis Report together with a certificate from Company's Auditors confirming compliance of the condition of Corporate Governance as stipulated in Clause 49 of the Listing Agreement forms part of this Annual Report.

CORPORATE SOCIAL RESPONSIBILITY

During the year under review Company has not constituted Corporate Social Responsibility Committee as the said provisions were not applicable to the Company for the year ended 31st March,2015.

LOANS, GUARANTEES, SECURITIES OR INVESTMENTS

There were no loans , guarantees given, investments made or security provided by the Company to any other entity falling within the purview of section 186 of the Companies Act, 2013.

SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES

The Company does not have any Subsidiary, Joint Venture or Associate Company.

NUMBER OF MEETINGS OF THE BOARD

The details of the number of Board Meetings of your Company are set out in the Corporate Governance Report which forms part of this Report. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNAL

There are no significant and material orders passed by the Regulators / Courts/Tribunal which would impact the going concern status of the Company and its future operations.

EXTRACT OF ANNUAL RETURN

Pursuant to Section 134(3)(a) of the Companies Act, 2013 read with Rule 12(1) of the Companies (Management and Administration) Rules 2014, the extract of annual return is annexed to this report as Annexure - A.

INTERNAL CONTROL SYSTEM

The details in respect of internal financial control and their adequacy are included in Management Discussion and Analysis Report, which forms part of this report.

DIRECTORS' RESPONSIBILITY STATEMENT

Your Directors state that :

(a) in the preparation of the annual accounts for the financial year ended 31st March, 2015, the applicable accounting standards have been followed and there are no material departures from the same.

(b) the Directors have 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 your Company as at 31st March, 2015 and of the profit and loss of the Company for the financial year ended 31st March, 2015.

(c) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

(d) the annual accounts have been prepared on a 'going concern' basis.

(e) the Directors have laid down proper internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively.

(f) the Directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

AUDITORS AND AUDITORS' REPORT

M/s. J.T Shah & Co, Chartered Accountants, Ahmedabad who are Statutory Auditors of the Company hold office up to the forthcoming Annual General Meeting and are recommended for re-appointment to audit the accounts of the Company for the financial year 2015-16. As required under the provision of the Companies Act,2013, the Company has obtained written confirmation from M/s. J.T Shah & Co, that their appointment, if made, will be in conformity with the limits specified in the said section.

There are no qualifications, reservations, or adverse remarks or disclaimers made by the M/s. J.T Shah & Co, Statutory Auditors, in their report. Observations made in the Auditor's Report are self-explanatory and therefore do not call for any further comments under Section 134(1)(f) of the Companies Act, 2013.

COST AUDITORS

As per the requirement of section 148 of the Companies Act,2013 read with the Companies (Cost Records and Audit) Rules,2014 as amended from time to time the Board of Directors on recommendation of the Audit Committee has appointed M/s. Kiran J. Mehta & Co, Cost Accountants, as Cost auditor to audit the cost accounts of the Company for the financial year 2015-16.

SECRETARIAL AUDITOR AND HIS REPORT

Pursuant to the provisions of Section 204 of the Companies Act, 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, your Company had appointed Mr. Jatin Kapadia, Practicing Company Secretary to conduct the Secretarial Audit for the year ended 31st March,2015. The Secretarial Audit Report is annexed herewith and forms part of this Report as Annexure - B. The Secretarial Audit Report does not contain any qualification, reservation or adverse remarks.

PARTICULARS OF EMPLOYEES

Pursuant to the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the statement showing names and other particulars of employees who is in receipt of the remuneration prescribed under the said rules is required to be attached to board report. However during the year under review there were no employees who is in receipt of the remuneration prescribed under the said rules. Your Directors therefore do not attach any statement regarding this.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

The information pertaining to conservation of energy, technology absorption, foreign exchange earnings and outgo as required under Section 134 (3)(m) of the Companies Act, 2013 read with rule 8(3) of the Companies (Accounts) Rules, 2014 is annexed to this report as Annexure - D.

ACKNOWLEDGEMENT

Your Directors would like to express their appreciation for the support and co-operation received from its shareowners, bankers, regulatory authorities, customers and business associates. Your Directors recognize and appreciate the sincere hard work, loyalty, dedicated efforts and contribution of all the employees that ensured sustained performance in a challenging business environment.

By order of Board of Directors

Date : 14th August, 2015 Jyotiprasad Chiripal Place: Ahmedabad Chairman


Mar 31, 2014

The Members

CIL Nova Petrochemicals Limited

The Directors are pleased to present the 10th Annual Report along with the Audited Financial Statements for the period from 1st April,2013 to 31st March,2014.

Financial Results

The Company''s financial performance, for the year ended March 31, 2014 is summarised below:

(Rs. in crores )

Particulars 2013-14 2012-13

Sales & Services 316.97 296.35

Other Income 0.97 0.73

Total Income 317.94 297.08

Total Expenses 314.07 293.59

Profit/(Loss) Before Tax 3.87 3.48

Tax Expense 0.97 0.72

Profit/(Loss) After Tax 2.90 2.77

Add : Balance brought forward (22.71) (25.47)

Amount available for appropriations (19.81) (22.71)

Appropriations :

Dividend - -

Tax on Dividend - -

General Reserve - -

Balance Carried Forward (19.81) (22.71)

Performance

During the year under review, turnover increased from Rs. 323.65 crore to Rs. 344.56 crore . The profit before tax was at Rs. 3.87 crore as against previous year profit before tax of Rs. 3.48 crore . The profit after tax was at Rs. 2.90 crore as against a profit of Rs. 2.77 crore over the previous year. The increase in profit is due to better realization of finished goods rate and better utilization of available resources. Your Directors expect to improve the performance even better during the current year.

Dividend

Your directors do not recommend any dividend on equity shares for the financial year 2013-14.

Directors

In accordance with the provisions of the Companies Act,2013 Mr. Jyotiprasad D Chiripal, retires by rotation at the ensuing Annual General Meeting and being eligible, offer himself for re-appointment . Further the Board of Directors at their meeting held on 6th August,2014 appoint him as Managing Director subject to approval of members in the ensuing annual general meeting.

Mr. Ambalal C Patel and Mr. Murli R Goyal, Independent Directors whose period of office was liable to determination by retirement of Directors by rotation under the erstwhile applicable provisions of the Companies Act,1956. However as per provisions of the Companies Act,2013 the Independent Directors are required to be appointed by shareholders and they shall not be liable to retire by rotation. Accordingly it is proposed to appoint them for a term of five consecutive years commencing from 20th September,2014 to 19th September,2019.

Pursuant to the provisions of Section 161(1) of the Companies Act, 2013, Mr. Rajendraprasad J. Shah was appointed as an Additional Director designated as an Independent Director w.e.f. March 18, 2014 and Ms. Renu C. Siddhu was appointed as an Additional Director designated as an Independent Director w.e.f 6th August,2014. They shall hold office up to the date of the ensuing Annual General Meeting. The Company has received requisite notice in writing from a member proposing Mr. Rajendraprasad J. Shah and Ms. Renu C. Siddhu for appointment as an Independent Director.

Public Deposits

Your company has not accepted any deposits from the public as defined under section 58A of the Companies Act,1956 and rules made there under.

Consolidation of Equity Shares

Your Directors would like to state that your Company has consolidated the face value of Equity Shares from Rs. 5/- per share to Rs. 10/- per share during the year under review. On complying with the necessary formalities of the stock exchanges, depositories and other regulatory authorities in connection with the said issue the trading in the equity shares of face value of Rs.10/- per share had recommenced on 1st January,2014. Your Directors therefore would like to inform the stakeholders that the face value of the equity shares of the Company is now Rs. 10/- per share.

Delisting of Equity Shares

Presently the equity shares of the company are listed on Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India Limited(NSE). During the year under review, the equity shares of the company were delisted voluntarily under Clause 6 (a) of SEBI (Delisting of Equity Shares) Regulations, 2009 from Ahmedabad Stock Exchange Limited (ASE) with effect from 31st March, 2014. Based on the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations 2009, it is open for the company to voluntarily delist its equity shares from one or more stock exchange (s) if it continues to remain listed on any stock exchange having nationwide trading terminals. Accordingly, the equity shares of the company were delisted as aforesaid from ASE without giving any exit opportunity to the share holders as the equity Shares of the company continued to be listed on BSE and NSE which is having nation wide trading terminals. The delisting of the company''s equity shares from ASE will not be prejudicial to or affect the interests of the investors.

Insurance

All assets of the company including inventories, building, plant and machineries are adequately insured.

Vigil Mechanism

Every listed Company and other Company as may be prescribed have to formulate the vigil mechanism for Directors and Employees of the Company to report genuine concerns about unethical behavior, actual or suspected fraud or violation of the Company''s Code of Conduct or ethics policy in terms of provisions of Section 177(9) of the Companies Act, 2013 and Rules made thereunder and revised clause 49 of the Listing Agreement with Stock Exchanges.

Your Company has established a vigil mechanism policy for its directors and employees to safeguard against victimization of persons who use Vigil mechanism and report genuine concerns. The Audit Committee of your Company shall oversee the Vigil mechanism.

Corporate Governance

A separate report on Corporate Governance and Management Discussion and Analysis together with a certificate from Company''s Auditors confirming compliance of the conditions of Corporate Governance as stipulated under clause 49 of the Listing Agreement are being published as a part of the Annual Report of the Company.

Director''s Responsibility Statement

Pursuant to the requirement under Section 217 (2AA) of the Companies Act, 1956 as amended by Companies (Amendment) Act, 2000 with respect to Directors Responsibility Statement, it is hereby confirmed;

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

(ii) that the Directors have 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 31st March,2014 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 annual accounts on a going concern basis.

Restructuring of bank dues under cdr mechanism

Your Company has obtained various credit facilities from different banks secured by the assets of the Company. In view of the losses incurred by the company, the CDR Cell and Banks while approving restructuring and also demerger have stipulated that the unsecured loan from Promoters group/ associates be converted in to capital so that Total Net Worth remain positive all the time.

Auditor''s and Auditor''s Report

M/s. J.T Shah & Co, Chartered Accountants, Ahmedabad hold office until the conclusion of the ensuing Annual General Meeting and are eligible for re-appointment. The Company has received confirmation from them to the effect that their re-appointment, if made, would be within the prescribed limits under Section 141(3)(g) of the Companies Act, 2013 and that they are not disqualified for re-appointment. You are requested to appoint the auditors and fix their remuneration.

The Statutory Auditor has qualified its Audit Report in respect of non-deposit of our part of Rs.3.39 lacs of unpaid/unclaimed dividend into Investor Education & Protection Fund till balance sheet date. Your director would like to clarify that the amount lying in unclaimed dividend in respect of earlier year was of erstwhile Nova Petrochemicals Limited and the same amount lying in the Bank Account was seized by the Sales Tax Authority which could not be accessed by the company to be transferred to Investor Education & Protection Fund when it became due and till date the seizure of the account is still continue. Further the company namely erstwhile Nova Petrochemicals Limited was demerged by order of the Honorable High Court of Gujarat and accordingly as per sharing ratio our liability in respect of transfer of unclaimed dividend comes to Rs 3.39 lacs and balance part is of GSL Nova Petrochemicals Limited, demerged company.

Cost Auditors

Pursuant to the order no.52/26/CAB-2010 dated 24th January,2012 of the Ministry of Corporate Affairs ("MCA") it was mandatory for the company to carried out audit of cost records of its textiles products . In terms of the said order Cost Audit have been conducted for F.Y 2013- 14 by M/s. Kiran J Mehta, firm of Cost Accountants having its office at 257, 2nd Floor, Ellisbridge Shopping Centre, Opp. MJ Library, Ahmedabad and have submitted the cost audit report to the board.

Particulars of Employees

Pursuant to the provision of section 217(2A) of the Act, read with (Particulars of Employees) Rules,1975 and amendment made thereto from time to time the names and other particulars of employees are require to be annexed to the Director''s Report. However during the year under review there were no employees drawing the salary more than the limit prescribed under the said rules. Your Directors therefore do not attach the annexure as prescribed under the provision of section 217(2A) of the companies Act,1956.

Conservation of energy, technology absorption and foreign exchange earnings and outgo

Particulars as required under section 217(1)(e) of the Companies Act,1956 read with Companies (Disclosure of Particulars in the Report of Board of Directors) Rules,1988 are given in the Annexure to this report.

Acknowledgement

Your Directors would like to express their appreciation for the support and co-operation received from the financial institutions, banks, government authorities, customers, vendors and members during the year under review. Your Directors also wish to place on record their deep sense of appreciation for the committed services by the Company''s executives and workers.

For and on Behalf of Board of Directors

Date : 6th August,2014 Jyotiprasad D Chiripal

PLace : Ahmedabad Chairman


Mar 31, 2013

To, The Members of CIL Nova Petrochemicals Limited

The Directors take pleasure in presenting the 9th Annual Report together with Audited Accounts of your Company for the Financial Year ended March 31,2013.

FINANCIAL RESULTS

Your Company''s operating performance for the year ended March 31,2013 as compared to the previous financial year is summarized below :

(Rs.in Crore)

Particulars 2012-13 2011-12

Sales & Services 296.35 321.70

Other Income 0.73 2.62

Total Income 297.08 324.32

Total Expenses 293.59 319.54

Profit/(Loss) Before Tax 3.48 4.78

Provision for Taxation 0.72 0.05

Profit/(Loss) After Tax 2.77 4.73

Add : Balance brought forward (25.47) (30.20)

Amount available for appropriations (22.71) (25.47) Appropriations :

Dividend - -

Tax on Dividend - -

General Reserve - -

Balance Carried Forward (22.71) (25.47)

PERFORMANCE

During the year under review, turnover declined from Rs. 342.15 crore to Rs. 323.65 crore. The profit before tax was at Rs. 3.48 crore as against previous year profit before tax of Rs. 4.78 crore . The profit after tax was at Rs. 2.77 crore as against a profit of Rs. 4.73 crore over the previous year. The dip in profit is attributed to unprecedented increase in cost of raw materials without commensurate increase in the cost of finished goods, demand fluctuation etc. Your Directors expects to improve the performance during the current year.

DIVIDEND

Your directors do not recommend any dividend on equity shares for the financial year 2012-13.

DIRECTORS

In accordance with the provisions of the Companies Act,1956 and Articles of Association of the Company, Mr Murli R Goyal, Director, retires by rotation at the forthcoming Annual General Meeting and is eligible for re-appointment .

PUBLIC DEPOSITS

Your company has not accepted any Deposits from the public as defined under section 58A of the Companies Act,1956 and rules made there under.

COVERAGE OF ASSETS

Your Directors state that there are various kinds of risks associated to the business of the company so in order to safeguard the interest of company and stakeholders your directors have taken adequate insurance coverage on assets of company against all major risks.

CORPORATE GOVERNANCE

Your Company is committed towards achieving the highest standard of Corporate Governance. The Directors and the Management of your company ensure compliance of the Corporate Governance requirements set out under the Listing Agreement entered into with Stock Exchanges.

Corporate Governance Report and Management Discussion and Analysis Report in terms of Clause 49 of the Listing Agreement are annexed and form part of this Annual Report. Auditors'' Certificate regarding compliance of conditions of corporate governance is also annexed.

PARTICULARS OF EMPLOYEES

Pursuant to the provision of section 217(2A) of the Act, read with (Particulars of Employees) Rules,1975 and amendment made thereto from time to time the names and other particulars of employees are require to be annexed to the Director''s Report. However during the year under review there were no employees drawing the salary more than the limit prescribed under the said rules. Your Directors therefore do not attach the annexure as prescribed under the provision of section 217(2A) of the companies Act,1956.

DIRECTORS '' RESPONSIBILITY STATEMENT

Pursuant to the requirement under Section 217 (2AA) of the Companies Act, 1956 as amended by Companies (Amendment) Act, 2000 with respect to Directors Responsibility Statement, it is hereby confirmed;

(i) that in the preparation of the accounts for the financial year ended 31st March 2013, the applicable accounting standards have been followed along with proper explanation relating to the material departures,

(ii) that the Directors have 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 31st March,2013 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 annual accounts on a going concern basis.

RESTRUCTURING OF BANK DUES UNDER CDR MECHANISM

Your Company has obtain various credit facilities from different banks secured by the assets of the Company. In view of the losses incurred by the company, the CDR Cell and Banks while approving restructuring and also demerger have stipulated that the unsecured loan from Promoters group/ associates be converted in to capital so that Total Net Worth remain positive all the time.

AUDITORS AND AUDITORS'' REPORT

M/s. J.T Shah & Co, Chartered Accountants, Ahmadabad hold office until the conclusion of the forthcoming Annual General Meeting and have confirmed their eligibility and willingness to accept the office of the Auditors, if reappointed.

The Statutory Auditor has qualified its Audit Report in respect of non-deposit of our part of Rs. 3.39 lacs of unpaid/unclaimed dividend into Investor Education & Protection Fund till balance sheet date. Your director would like to clarify that the amount lying in unclaimed dividend in respect of earlier year was of erstwhile Nova Petrochemicals Limited and the same amount lying in the Bank Account was seized by the Sales Tax Authority which could not be accessed by the company to be transferred to Investor Education & Protection Fund when it became due and till date the seizure of the account is still continue. Further the company namely erstwhile Nova Petrochemicals Limited was demerged by order of the H''onorable High Court of Gujarat and accordingly as per sharing ratio our liability in respect of transfer of unclaimed dividend comes to Rs 3.39 lacs and balance part is of GSL Nova Petrochemicals Limited, demerged company. Further observation of Auditors that Rs. 40.24 Lacs was outstanding for more than six months towards income tax, was precisely advance tax for the current fiscal year. Your directors would like to state that it has been noticed in the past that the POY industry fluctuated seasonally due to variations in supply & demand. Accordingly a good performance during a quarter / half year converted into average / below average performance during subsequent quarter / half year. Due to the fluctuation in performance, your company was following the practice of paying income tax after the end of the financial year based on the actual profit / loss. Now the POY Industry has stabilized with minimal fluctuation in demand & supply and therefore, the company has now adopted the practice of payment of advance tax from the current financial year.

COST AUDITORS

M/s. Kiran J Mehta & Co., Cost Accountants who was appointed after recommendation of the Audit Committee for conducting the audit of cost accounts of the company for the financial year 2012-13 in respect of Textiles Products. Their appointment was approved by the Central Government. In terms of The Companies (Cost Accounting Records) Rules 2011, as amended from time to time, the Compliance Report for the financial year March 31, 2012 as applicable has been duly filed. Your company has thus complied the rules and regulation prescribed by the Ministry of Corporate Affairs in this regard.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

Particulars as required under section 217(1)(e) of the Companies Act,1956 read with Companies (Disclosure of Particulars in the Report of Board of Directors) Rules,1988 are given in the Annexure A to this report.

ACKNOWLEDGEMENT

Your Directors thank the Company''s customers , suppliers , bankers , financial institutions, shareholders and regulatory authorities for their consistent support to the company. Your Directors also sincerely acknowledge the significant contribution made by all the employees of the Company during the year under review.

By order of Board of Directors

Date : 13.08.2013 Jyotiprasad D Chiripal

Place : Ahmedabad Chairman


Mar 31, 2011

To The Members of CIL Nova Petrochemicals Limited. ( Formerly Known as Nova Poly yarn Limited )

The Directors are delighted to present the 7th Annual Report together with Audited Statement of Accounts of the Company for the year ended March 31,2011.

FINANCIAL RESULTS

The Financial Performance of your Company for the year ended March31,2011 is summarized below:

(Rs. In Cr) Particulars Current Year Previous Year 2010-2011 2009-2010

Sales 294.29 194.21

Other Income 0.66 0.83

Increase /(Decrease) in Stock (5.18) 9.04

Less- Expenditure 269.32 186.47

Profit Before Interest, Depreciation & Taxation 20.44 17.62

Less : Interest & Financial Charges 9.12 9.10

Profit Before Depreciation and Taxation 11.32 8.52

Less : Depreciation 9.19 9.01

Profit/(Loss) before Taxation 2.12 (0.49)

Add : Exceptional Item 0 1.27

Profit/(Loss) before taxation 2.12 0.78 Less: Provision for Taxation

Current including wealth Tax 00 00

Fringe Benefit Tax 00 00

Deferred 00 00

Profit/(Loss) after Taxation 2.12 0.78

PERFORMANCE

During the year under review, the company has achieved a gross turnover of Rs.314.28 Crore for the year 2010-11 as compared to the gross turnover of Rs.206.27 Crore for the year 2009-10 which shows a rise of 52.36 % over the previous year. The PBIDT during the year under review was Rs.20.44 Crore as compared to Rs.17.62 Crore, registering the increase of 15.97 % over the previous year. The Company has achieved a profit of Rs.2.12 Crore as compared to a profit of Rs.0.78 Crore over the previous year 2009-10. Your directors expects to improve performance during the current year.

DIVIDEND

Your directors do not recommend dividend during the year under review as the company is setting its existing manufacturing activities after the demerger and is under process to put up the projects to achieve growth.

DIRECTORS

The Companies Act,1956 provides that at least two-thirds of our directors are subject to retire by rotation. One third of these directors must retire from office at each Annual General Meeting of shareholders. A retiring director is eligible for re-election. Mr Ved Prakash D Chiripal retire by rotation and eligible offer themselves for re-appointment at this Annual General Meeting.

Your directors recommend their re-appointment at the ensuing Annual General Meeting.

PUBLIC DEPOSITS

During the year, your Company has not accepted any Deposits under Section 58A and Section 58AA of the Act, read with Companies (Acceptance of Deposits) Rules,1975.

COVERAGE OF ASSETS

The Company has reviewed the Adequate Insurance Cover for the existing Plant & Machinery, Building, Stock, etc. considering the various risk factors attached to the assets and insured the assets to take care of the unforeseen circumstances to safeguard the interest of the company.

CORPORATE GOVERNANCE

Your Company is committed towards achieving the highest standard of Corporate Governance. The Directors and the Management of your Company ensure compliance of the Corporate Governance requirements set out under the Listing Agreement with Stock Exchanges.

A detailed report on Corporate Governance pursuant to the requirement of Clause 49 of the Listing Agreement with the Stock Exchange together with Auditor's Certificate confirming compliance is attached to this Annual Report.

PARTICULARS OF EMPLOYEES

Pursuant to the provision of section 217(2A) of the Act, read with (Particulars of Employees) Rules,1975 the names and other particulars of employees are require to be annexed to the Director's Report. However during the year under review there were no employees drawing the salary more than the limit prescribed under the Act. Yours Directors therefore do not attach the annexure as prescribed under the provision of section 217(2A) of the companies Act,1956.

RESPONSIBILITY STATEMENT

Pursuant to the requirement under Section 217 (2AA) of the Companies Act, 1956 as amended by Companies (Amendment) Act, 2000 with respect to Directors Responsibility Statement, it is hereby confirmed;

(i) that in the preparation of the accounts for the financial year ended 31st March 2011, the applicable accounting standards have been followed along with proper explanation relating to the material departures,

(ii) that the Directors have selected such accounting polices 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 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 annual accounts on a 'going concern' basis.

AUDITORS

You are requested to appoint the auditors for the current year and to fix their remuneration. The retiring auditors M/s. J.T Shah & Co, Chartered Accountants, are eligible and offer themselves for re-appointment. The Company has received a certificate from M/s. J.T Shah & Co. to the effect that their re-appointment, if made, will be within the prescribed limits specified in Section 224(1B) of the Companies Act, 1956.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

Particulars as required under section 217(l)(e) of the Companies Act,1956 read with companies (Disclosure of Particulars in the Report of Board of Directors) Rules,1988 are given in the annexure A to this report.

ACKNOWLEDGEMENT

Your Directors wish to place on record their appreciation of the dedication and commitment of employees at all levels that have contributed to the success of your Company. Your Directors thank and express their gratitude for the continued support and co-operation received from the shareholders, business associates, vendors, Bankers, customers, service providers and various statutory authorities.

On Behalf of Board of Directors

Date : 11.08.2011 Jyotiprasad D Chiripal

Place : Ahmedabad Chairman

 
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