Mar 31, 2012
The Directors present herewith the 19th Annual Report and the audited accounts for the year ended 31st March 2012.
1. FINANCIAL RESULTS: Rs. in Lakhs
Particulars 2011-12 2010-11
Turnover (including other income) 6,115.75 5,385.36
Profit before Tax 135.97 129.43
Less: Tax Expenses 30.00 32.00
Profit after Tax 105.97 97.43 Profit Carried to Balance Sheet 105.97 97.43
2) REVIEW OF OPERATIONS FOR THE FINANCIAL YEAR 2011-12
The operations have improved substantially during the year 2011 - 2012 by 13.50.%. The turnover has increased from Rs. 53.85 crores to Rs. 61.16 crores. The improvement in business is mainly due to expanded capacities which will further improve in the next financial year. Effective use of manpower and machinery also contributed to the increase to a significant extent. The increase in salaries is about 25%.
3) Management Discussion Analysis:
Management Discussions on the following heads and Analysis is annexed to this Report.
a) General Pharma Industrial Scenario
b) Opportunities for the Company
c) Outlook for Financial Year 2012-13
d) Internal controls systems
e) Human Resource Development and industry relations
In accordance with the provisions of the Companies Act, 1956 and the Articles of Association of the Company Dr. K. Easwer Reddy, Raju S. Kakarlapudi and Sri A. Parvatisem are retiring by rotation at the ensuing Annual General Meeting and being eligible, offer themselves for reappointment.
As there are inadequate profits and marginal operational surplus during this year your directors do not propose any dividend during the year.
The Statutory Auditors of your Company M/s. P.S.N. Ravishanker & Associates, Chartered Accountants, Hyderabad hold office till the conclusion of the forthcoming Annual General Meeting. The Company has received a letter from the auditors to the effect that their appointment as Auditors, if made, would be within the limits under Section 224 (1B) of the Companies Act, 1956.
7) AUDITORS' REPORT:
The Notes on account, referred to in the Auditors' Report, are self-explanatory and therefore do not call for any further comments under Section 217 (3) of the Companies Act, 1956.
8) CORPORATE GOVERNANCE:
Pursuant to Clause 49 of listing Agreement, your Company has to mandatorily comply with the requirements of Corporate Governance. A separate section on Corporate Governance and a Certificate from the Auditors of the Company regarding compliance of conditions on Corporate Governance, form part of the Annual Report.
9) DIRECTORS RESPONSIBILITY STATEMENT:
The Directors would like to inform the members that the Audited Annual Accounts for the year ended 31st March 2012 are in fully conformity with the requirements of Companies Act 1956. The Directors further confirm that:
a) In preparation of the Annual Accounts the applicable Accounting Standards have been followed with proper explanation wherever required.
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 the Company at the end of the financial year and profit of the Company for that period.
c) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.
d) The directors have prepared the Annual Accounts on a going concern basis.
During the year under review, the Company has not accepted any deposits from public within the meaning of sections 58A and 58AA of the Companies act, 1956 and the rules made there under.
11) CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:
Information U/S 217(i)(e) of the Companies Act, 1956 read within the report of the Board of Directors Rules 1988 and forming part of Directors report.
A. Details of Conservation of energy:
Company's operations at the factory are energy intensive. The Company is taking adequate measures to reduce energy consumption by adopting new technologies.
B. Foreign Exchange Earnings and outgo:
Total foreign exchange earnings during the year was Rs. 826.63 Lakhs (Previous year (2010-11) Rs. 1024.92 lakhs) and foreign exchange outgo was Rs. 511.80 lakhs (Previous year Rs. 460.04 lakhs)
12) LISTING OF SHARES IN STOCK EXCHANGES:
The Equity Shares of the Company are listed at Mumbai Stock Exchange. (Presently trading was suspended). A consultant has been appointed to revoke suspension of trading. Hopefully the exercise wit) be completed in six to nine months.
None of the employees are covered under Sec. 217 (2A) of the Companies Act 1956 read with (Particulars of the Company) Rules 1975 and forming part of the Directors Report for Vn & Accounting year 2011-12.
All the properties of the Company including Buildings, Plant and Machinery and Stocks have been adequately insured.
15) HUMAN RESOURCES:
Human resources of the Company across all sections contributed significantly towards better performance and look forward for higher growth. Detailed report annexed.
16) MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS:
The Company did not lose any of its key personnel during the year. The employees' morale is high and adequate steps are being taken for continuous training of staff in new technologies to take up challenging assignments. All the employees have been duly insured.
17) INDUSTRIAL RELATIONS:
Industrial relations have been cordial and your Directors appreciate the sincere and efficient services rendered by the employees of the Company at all levels towards the successful working of the Company.
Your Directors wish to place on record their sincere thanks to all those who have supported your Company's all round activities and contributed towards growth particularly Members, Bankers, Government Agencies, customers and ail others involved with the Company.
By Order of the Board of Directors of Everest Organics Limited
S. K. Srihari Raju S. K. Hari Krishna Managing Director Executive Director
Place: Hyderabad Date: 25.07.2012