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Directors Report of Everest Organics Ltd.

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

4) DIRECTOR:

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.

5) DIVIDEND:

As there are inadequate profits and marginal operational surplus during this year your directors do not propose any dividend during the year.

6) AUDITORS:

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.

10) Deposits:

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.

13) PERSONNEL:

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.

14) INSURANCE:

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.

18) ACKNOWLEDGEMENTS:

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

Sd/- Sd/-

S. K. Srihari Raju S. K. Hari Krishna Managing Director Executive Director

Place: Hyderabad Date: 25.07.2012


Mar 31, 2011

Dear Members,

The Directors present herewith the 18th Annual Report and the audited accounts for the year ended 31st March 2011.

1. FINANCIAL RESULTS:

(Rs.in.Lakhs)

Particulars 2010-11 2009-10

Turnover 5,687.72 4,231.60

Other income 151.24 205.63

Increase in Stocks 101.09 114.94

Total 5,940.05 4,552.17

Operating Expenses 4,960.93 3,833.83

Excise Duty 453.45 309.06

Operating Profit (PBDIT) 525.67 409.27

Interest 157.15 136.46

Depreciation 151.57 137.21

Profit before Tax 146.48 135.60

Provision for taxation

- Tax on Profit 32.00 20.00

Profit after Tax 114.48 115.60 Prior period Adjustments 17.05 0.00

Profit Carried to Balance Sheet 97.43 115.60

2). REVIEW OF OPERATIONS FOR THE FINANCIAL YEAR 2010-11

The operations have improved substantially during the year 2010 – 2011 by 34%. The turnover has increased from Rs.42.03 crores to Rs.56.8 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 2011-12

d). Internal controls & systems

e). Human Resource Development and industry relations

4). DIRECTOR:

In accordance with the provisions of the Companies Act, 1956 and the Articles of Association of the Company Sri V.Swaminathan and Sri K. Rama krishnam Raju are retiring by rotation at the ensuing Annual General Meeting and being eligible, offer themselves for reappointment.

5). DIVIDEND:

As there are inadequate profits and marginal operational surplus during this year your directors do not propose any dividend during the year.

6). AUDITORS:

The Statutory Auditors of your Company M/s. P.S.N.Ravi Shanker & Associates, Chartered Accountants, Hyderabad holds 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 (1-B) 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 2011 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 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 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.

10) DEPOSITS:

During the year under review, the Company has not accepted any deposits from public within the meaning of section 58A 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, like variable frequency drives, high Efficiency motors, Pumps etc.

B. Foreign Exchange Earnings and outgo:

Total foreign exchange earnings during the year was Rs.1024.92 Lakhs (Previous year Rs.409 lakhs) and foreign exchange outgo was Rs.475.98 lakhs (Previous year Rs.91.21 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 initiate the proceedings to lift suspension of shares at a cost of Rs.10.75 lakhs. Hopefully the exercise will be completed in six to nine months.

13) PERSONNEL:

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 the Accounting year 2010-11.

14) INSURANCE:

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) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Internal controls implemented by your Company are adequate to ensure that the financial statement is correct, sufficient and credible.

17) 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 continues training of staff in new technologies to take up challenging assignments. All the employees have been duly insured.

Training was imparted to all grades of personnel working in the company. The company has spent Rs. 1,57,573/- on training people from 01.04.2010 till date. The training will be more vigorous in furture.

The subject of training are mainly on :

- Warehouse management

- Managerial effectiveness & stress Management

- Export training classes

- Forex management

- SHE

- Fire Safety

- Environmental issues

- Strategic marketing & Productivity Management

18) 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.

19) ACKNOWLEDGEMENTS:

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 all others involved with the Company.

By Order of the Board of Directors of Everest Organics Limited

Sd/- Sd/ Dr. S.K.Srihari Raju S.K.Hari Krishna Managing Director Executive Director

Place: Hyderabad Date : 29.07.2011


Mar 31, 2010

The Directors present herewith the 17th Annual Report and the audited accounts for the Year ended 31st March 2010 together with the Auditors Report thereon.

1) FINANCIAL RESULTS:

(Rs.in.Lakhs)

Particulars 2009-10 2008-09

Turnover 4231.60 2691.29

Other Income 205.63 154.04

Increase in Stocks 114.94 25.88

Total 4552.17 2871.21

Operating Expenses 3833.83 2292.34

Excise Duty 309.06 246.34

Operating Profit (PBDIT) 409.27 332.54

Interest 136.46 71.57

Depreciation 137.21 132.67

Profit before Tax 135.60 128.30

Prior Period Adjustments 0.00 -0.53

Provision for taxation ;

-Taxon Profit 20.00 16.00

- Fringe Benefit Tax 0.00 2.50

Profit after Tax 115.60 109.26

Profit Carried to Balance Sheet 115.60 109.26



2) REVIEW OF OPERATIONS FOR THE FINANCIAL YEAR 2009-10

During the financial year 2009-2010, the operations have improved substantially by about 38%. The Turnover including conversion has increased from Rs.26.25 crores to Rs.42.43 ] crores. This improvement in the business has become possible with the increase in demand for existing products of the Company coupled with more effective use of the existing machinery, manpower and financial resources.,

3) Management Discussions and 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 2010 -11.

d) Internal Controls Systems

e) Human Resource Development and Industry relations

4) DIRECTORS:

In accordance with the provisions of the Companies Act, 1956 and the Articles of Association of the Company Sri. V.Swaminathan, and K.Rama Krishnam Raju are retiring by rotation at the ensuing Annual General Meeting and being eligible, offer themselves for reappointment,

5) DIVIDEND.

As there are inadequate profits and marginal operational surplus during this year your directors do not propose any dividend during the year.

6) AUDITORS:

The Statutory Auditors otyour Company M/s. P.S.N. Ravi Sanker & Associates., Chartered Accountants Hyderabad holds 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 (1-B) of the Companies Act, 1956

7) AuditorsReport:

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 the 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 2010 are in full 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 Annuai Accounts on a going concern basis.

10. Deposits:

During the year under review, the Company has not accepted any deposits from public within the meaning of section 58A 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: -.

Companys 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.409 Lakhs (Previous year Rs.472 Lakhs) and foreign exchange outgo was Rs.91.21 Laksh (Previous year Rs.184 Lakhs)

12) LISTING OF SHARES IN STOCK EXCHANGES:

The Equity Shares of the Company are listed at Mumbai Stock Exchange, (presently trading was suspended).

13) PERSONNEL:

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 the Accounting year 2009-10.

14) INSURANCE:

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) INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Internal controls implemented by your Company are adequate to ensure that the financial statement is correct, sufficient and credible.

17) 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.

18) 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.

19) ACKNOWLEDGMENTS:

Your Directors wish to place on record their sincere thanks to all those who have supported your Companys all round activities and contributed towards growth particularly Members, Bankers, Government Agencies, customers and all others involved with the Company.

By Order of the Board of Directors Of Everest Organics Limited

Sd/- ;

Dr.S.K. Srihari Raju Managing Director

Place: Hyderabad

Date : 27.05.2010

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