Mar 31, 2014
Dear Members,
The Directors of Haryana Leather Chemicals Ltd. are pleased to present
the 29th Annual Report and Audited Statement of the Company''s accounts
for the year ended on 31st March, 2014.
FINANCIAL RESULTS
A summary of the financial results for the year 2013-2014 is given
below:
2013-14 2012- 13
(Rs. in Lacs) (Rs. in Lacs)
Sales Turnover (Net of Excise) 4479.39 3967.14
Gross Profit 467.86 398.49
Deductions
Depreciation 78.49 75.2
Interest 12.85 20.42
Profit before tax 376.52 302.87
Less: Provision for Income
Tax for the year 93.48 92.00
Less: Provision for Fringe
Benefit Tax (FBT) - -
Less: Provision for taxation /
FBT earlier year 1.59 28.11
Add: Provision for Income
Tax written back - -
Less: Previous year''s adjustment - -
Less/(Add): Deferred tax liability 9.71 4.29
Profit after tax and available
for appropriation 271.74 178.36
Less: Provision for dividend 34.36 29.45
Less: Provision for dividend tax 5.84 5.01
Less: Transfer to general reserve 34.73 21.58
Profit carried to balance sheet 196.81 122.32
OPERATIONS
During the year the Company has achieved a sales turnover of Rs. 4479
lacs against Rs. 3967 lacs for the previous year. The net profit for
the year is Rs. 272 lacs against Rs.178 lacs for the previous year. The
exports are at Rs.1632 lacs compared to the previous year''s exports of
Rs. 1673 lacs.
The Company has recorded approximately 12% growth in sales in
comparison to previous year and 50% increase in profit carried to
Balance Sheet.
DIRECTORS
Pursuant to the provisions of the Articles of Association of the
Company, the Directors - Mr. Pradeep Behl, Dot. Massimo Medini, Lt.
Gen. (Retd.) H.C. Dutta retire by rotation at the forthcoming Annual
General Meeting to be held on 20th September, 2014 and being eligible
they offer themselves for re-appointment.
STATUTORY AUDITORS
The statutory auditors of the Company M/s S. C. DEWAN & Co., Chartered
Accountants, Panchkula are retiring at the forthcoming Annual General
Meeting and they are eligible for re-appointment, offers themselves for
the same. Their appointment, if made, will be in accordance with
section 224 (1-B) of the Companies Act, 1956 (hereinafter referred to
the "Act").
Auditor''s report does not need any comments from the directors.
PARTICULARS OF EMPLOYEES u/s 217(2) (A)
The Company did not employ any person drawing a remuneration of Rs.
5,00,000.00 or above for one month or part of the month or Rs.
60,00,000.00 or above for one year, whose particulars are required to
be mentioned u/s 217(2)(A) of the Companies Act, 1956.
SECRETARIAL COMPLIANCE CERTIFICATE
As the paid up share capital of the Company is more than Rs.
10,00,000/- and below Rs. 5,00,00,000/- so a certificate from the
Company Secretary in practice is attached with the report as per the
requirements of section 383A of the Companies Act, 1956 who has
conducted audit of the books and other documents of the Company and has
given the certificate.
COST AUDITOR''S COMPLIANCE CERTIFICATE
As the Central Government has by an order directed that an audit of
cost accounts of the Company should be conducted in the manner
specified in MCA order 52/26/CAB -2010 Dt. 24-01-2012, by an auditor
who shall be a Cost Accountant within the meaning of the Cost and Works
Accountants Act, 1959, so a certificate from the Cost Auditor in
practice is taken as per the requirements of section 209( 1 )(d) of the
Companies Act, 1956 who has conducted audit of the books and other
documents of the Company and has given the certificate.
TRANSFER OF FUNDS TO INVESTOR EDUCATION AND PROTECTION FUND
As the Company is distributing dividend to its shareholders since 2006
on recommendation of the shareholders of the Company. The Board also
authorised to take all the necessary steps to transfer the unpaid /
unclaimed dividend of Equity Shareholders for the year 2006-2007 to the
Investor Education and Protection Fund (IEPF) of the Central Government
established under sub section (1) of section 205C of the Companies Act,
1956 on the date as per the provisions of the relevant section of the
Act.
FIXED DEPOSIT
The Company has not accepted / renewed any fixed deposits during the
period under review.
CORPORATE GOVERNANCE
A certificate on the compliance of conditions of corporate governance
has been obtained from the Statutory Auditors of the Company and the
same has been given below as Annexure.
DIRECTORS'' RESPONSIBILITY STATEMENT AS PER SECTION 217(2AA) OF THE
COMPANIES ACT, 1956.
The Board of Directors of the Company confirms that:
a. during the preparing of the annual accounts, the applicable
accounting standards have been followed and no material departure has
taken place;
b. the selected accounting policies were applied consistently and the
directors made judgments and estimates that are reasonable and prudent
so as to give an accurate view of the state of affairs of the Company
as at March 31, 2014 and of the profit of the Company for the year
ended on that date;
c. proper and sufficient care has been taken 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;
d. annual accounts have been prepared on an ongoing concern basis.
QUALITY CONTROL
The Company''s quality control system has gained further strength with
focus on Restricted Substances List (RSL) of REACFI (Registration,
Evaluation and Authorization of Chemicals). New RSL inclusions of 2013
have been successfully addressed by the Company. The Company has
expanded its in-house chromatography platform by "state of the art"
instruments, and key inputs are screened for suspected RSL.
Quality incidences reported by customers were deeply investigated and
corrections in product specifications and processes have been
implemented to avoid any recurrence. The Company has also undertaken
restructuring of its quality policy and new document system that will
comply with the requirements of ISO 9001 : 2008 and ISO 14000 : 2004 is
being put in place.
EXPORT OPERATIONS
In spite of recessionary trends in China, a key export market, the
Company has been able to maintain its export operations -though growth
targets could not be realized. The Company has identified thrust areas
in Latin American markets and hopes for an early breakthrough in this
distant market. The Company explored the possibility of setting up a
representative office in the US to serve Latin American markets, but
found that it will be more economical to operate through agents and
dealers at this early stage. The efforts undertaken for entering
Indonesian market have also yielded encouraging results and Company
will consolidate its efforts further in this market.
TECHNOLOGY DEVELOPMENT
Since the last two years, the Company has been aggressively pursuing
technology development of Di-Sulphone Syntan, Acrylic Impact and Flow
Modifiers for use in PVC. A vital component of this project was a new
generation spray dryer - a part of which has been imported. During the
year the entire plant, its sequence of operation was tested and fuel
consumption validated by producing full scale batches. The results from
the plant in terms of yield and heat efficiency are satisfactory and
the plant has been put to successful commercial production.
During the year the Company also tested several new technologies on
bulk storage, fluid handling, pneumatic pumping and batching of key
inputs with a view to improve plant efficiency and reduce batch process
times. This activity was essential in view of emerging trends in
transportation methods of chemicals in bulk tankers. The initial
results of the new techniques are very satisfactory. In the coming few
months this concept will be replicated to handle more products to
improve operational convenience and faster batch cycle.
DIVIDEND
Considering the current growth and profitability, the Directors are
pleased to recommend the dividend @ 7%.
PERSONNEL & INDUSTRIAL RELATION
The Company continues to maintain cordial relations across all levels
of workforce. The key managerial staff has also maintained cordial
relationship with their subordinates. The Company''s efforts to involve
shop floor supervisors and workers in generating new technical ideas
have caused improved efficiency and safety. A new software for online
sanction of leaves is being tested. The Company has maintained the
yearly increments and bonus system to ensure motivation at all levels.
ENVIRONMENT & POLLUTION CONTROL MEASURES
The Company has complied with all the required State Pollution Control
Regulations and its Amendments from time to time. The waste water
discharge has been further reduced and has almost reached a quantity
where the Company can aspire to achieve a "zero discharge" status. The
vacuum distillation process and equipment for recovery of water from
waste water was evaluated and was found enviable for small volume. It
was considered that instead of water recovery, the wash water should be
minimized and reused in subsequent batches. This system of reuse of
wash water has been implemented in few products and more are likely to
be covered under this concept.
The Company has also initiated expansion of water testing lab to test
key parameters like COD, BOD, TSS and TDS. The data generated through
this exercise will enable further improvement from each effluent stream
for stricter control in discharge of wash water.
ACKNOWLEDGEMENT
The Directors extend their sincere thanks to Company''s suppliers for
enabling stricter quality controls; domestic and international dealers
for their zealous approach for increased market share; representatives,
service providers, financial institutions and technical consultants for
their continued support.
The Directors deeply appreciate the involvement of all the employees in
achieving the sales growth and for putting their best efforts towards
meeting various challenges during the year.
For and on behalf of the Board of Directors
of Haryana Leather Chemicals Limited
Place : New Delhi N.K. JAIN PANKAJ JAIN
Date : 14th May, 2014 Chairman Managing Director-cum-Vice Chairman
Mar 31, 2013
Dear Shareholders,
The directors of Haryana Leather Chemicals Ltd. are pleased to present
the 28th Annual Report and Audited
Statement of the company''s accounts for the year ended on 31st March,
2013,
FINANCIAL RESULTS
A summary of the financial results for the year 2012-2013 is given
below:
2012-13 2011-12
(Rs. in Lacs) (Rs. in Lacs)
Sales Turnover (Net of Excise) 3967.14 3219.97
Gross Profit 398.49 294.59
Deductions
Depreciation 75.20 74.62
Interest 20.42 17.21
Profit before Tax 302.87 202.76
Less: Provision for Income
Tax for the year 92.00 47.15
Less: Provision for Fringe
Benefit Tax for the Year
Less: Provision for Taxation
/FBT earlier year 28.11 1.43
Add: Provision for Income
Tax written back - 18.45
Less: Previous year Adjustment
Profit after Tax and available
for Appropriation 178.36 169.92
Less: Provision for Dividend 29.45 29.45
Less: Provision for Dividend Tax 5.01 5.01
Less: Transfer to General Reserve 21.58 20.32
Profit carried to Balance Sheet 122.32 115.14
OPERATIONS
During the year the company has achieved a sales turnover of Rs. 3,967
lacs against Rs. 3,220 lacs for the previous year. The net profit for
the year is Rs. 178 lacs against Rs. 169.92 lacs for the previous year.
The exports are at Rs. 1,673 lacs compared to the previous year''s
exports of Rs. 1,092 lacs. The company has recorded 53% growth in
sales in export market as compared to last year.
DIRECTORS
Pursuant to the provisions of the Articles of Association of the
Company, the directors - Mr. Pradeep Behl, Dot. Massimo Medini, Lt.
Gen. (Retd.) H.C. Dutta retire by rotation at the forthcoming Annual
General Meeting to be held on 7th August, 2013 and being eligible they
offer themselves for re-appointment.
STATUTORY AUDITORS
The statutory Auditors of the company M/s. S. C. DEWAN & Co., Chartered
Accountants, Panchkula are retiring at the forth coming Annual General
Meeting and they are eligible for re-appointment offers themselves for
the same. Their appointment, if made, will be in accordance with
section 224 (1-B) of the Companies Act, 1956 (hereinafter referred to
the "Act"). Auditor''s report does not need any comments from the
directors.
PARTICULARS OF EMPLOYEES u/s 217(2) (A)
The company did not employ any person drawing a remuneration of Rs.
5,00,000/- or above for one month or part of the month or Rs.
60,00,000/- or above for one year, whose particulars are required to
mention u/s 217(2)(A) of the Companies Act, 1956.
SECRETARIAL COMPLIANCE CERTIFICATE
As the paid up share capital of the company is more than Rs.
10,00,000/- and below Rs. 5,00,00,000/- so a certificate from the
Company Secretary in practice is attached with the report as per the
requirements of section 383A of the Companies Act. 1956 who has
conducted audit of the books and other documents of the company and
given the certificate.
TRANSFER OF FUNDS TO INVL t, ,, 1.0. ION FUND;
As the Company is distributing dividend to its shareholders since 2006
on recommendation of the shareholders of the Company. The Board also
authorised to take all the necessary steps to transfer the unpaid /
unclaimed Dividend of Equity Shareholders for the year 2005-2006 to the
Investor Education and Protection Fund (IEPF) of the Central Government
established under sub-section (1) of section 205C of the Companies Act,
1956 on the date as per the provisions of the relevant section of the
Act.
FIXED DEPOSIT
The company has not accepted / renewed any fixed deposits during the
period under review.
CORPORATE GOVERNANCE
A certificate on the compliance of conditions of corporate governance
has been obtained from the Statutory Auditors of the company and the
same has been given below as Annexure.
DIRECTORS'' RESPONSIBILITY STATEMENT AS PER SECTION 217(2AA) OF THE
COMPANIES ACT, 1956.
The Board of Directors of the company confirms that:
i. during the preparing of the annual accounts, the applicable
accounting standards have been followed and no material departure has
taken place;
ii. the selected accounting policies were applied consistently and the
directors made judgments and estimates that are reasonable and prudent
so as to give an accurate view of the state of affairs of the company
as at 31st March, 2013 and of the profit of the company for the year
ended on that date;
iii. proper and sufficient care has been taken 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. annual accounts have been prepared on an ongoing concern basis.
QUALITY CONTROL
The focus of company''s quality control has been to comply to REACH
legislation (Registration, Evaluation and Authorization of Chemicals)
of ECHA (European Chemical Agency) and to update changes in restricted
substance list (RSL). Though most vendors have started certifying
materials but regular validation from outside testing labs like SGS and
INTERTEK has been carried out throughout the year. The company has also
outlined an expansion plan of quality control lab to include more
chromatography equipment to cover the expanding list of restricted
substances.
All the quality incidences reported by customers in domestic and export
market were promptly attended and resolved to their full satisfaction.
The company continues to comply with the quality policy and the quality
objectives outlined in the ISO 9001-2000 and ISO 14001 internal system
and ISO certification are under renewal.
EXPORT OPERATIONS
Company''s efforts to increase exports have yielded significant results
in most of the areas. The overall increase of sales revenue can be
attributed mainly to an export growth of nearly 53% with revival of
some key markets. Introduction of some high value products to markets
in Poland and China also resulted in increased exports. Company also
invited important dealers from Indonesia and Ethiopia for training and
orientation on company''s new line of products targeted for these
markets.
Company has also initiated alliances with competitors to initiate
exports in those markets where the company could not find appropriate
agents. Such alliances, especially in Latin America, can be extremely
viable and beneficial for export growth. The company is also exploring
possibility of setting up a representative office in the US to serve
Latin American markets.
TECHNOLOGY DEVELOPMENT
The first phase of TDB funded project for commercialization of
Polyurethane Dispersions has been successfully completed and the
company has decided not to scale up to second phase in immediate
future. Considering the revised phasing plan, the company has revised
the financial outiay and has pre-paid the TDB loan of Rs. 125 lacs in
monthly installment. As per the deed of settlement the monthly
repayments covering the principle amount of TDB and the applicable
interest started in Oct. 2012 and have concluded in June 2013. The
scale up, if required in future, is proposed to be funded from internal
accruals.
Plant erection work for the new spray dryer required for technology
development of new generation of Di-Sulphone syntans, Acrylic impact
and flow modifiers for PVC is in full swing and final stages. Upto
March 2013, most of the equipment was in place - except the heater unit
The stress testing of structure, dry air run are planned between July -
August 2013. The entire commissioning and testing is projected to be
completed before Sept. 2013.
DIVIDEND
Considering the current growth and profitability, the directors are
pleased to recommend continuation of dividend of 6%.
PERSONNEL & INDUSTRIAL RELATION
Industrial relation remained cordial across all segments of skilled and
unskilled workforce.
The company has been able to maintain cordial relations across all
levels of workforce. The attrition rate of skilled workforce has been
negligible. The feedback to employees through the annual appraisal
system has instilled a sense of deeper responsibility amongst the
mid-level managers and they are being further trained to take bigger
operational responsibilities. The company has maintained the yearly
increments and bonus system to ensure motivation at all levels.
ENVIRONMENT & POLLUTION CONTROL MEASURES
The company has been able to satisfactorily meet various statutory
regulations of state pollution control board. The periodic sampling of
air and water carried out by inspecting agency has validated that
company has strictly adhered to the waste discharge norms. Inspite of
increased production, the waste water discharge has not increased due
to tighter control of wash cycles. The company continues to deliver all
solid waste to Gujarat Enviro Protection & Infrastructure (Haryana)
Pvt. Ltd. (GEIPL) common treatment facility for disposal.
The company is also actively considering various new technologies for
waste water recovery. Preliminary discussions with some German
Companies have revealed that using vacuum distillation process the
waste water can be recovered using minimum energy. A techno -
commercial evaluation of this technology is currently under progress.
ACKNOWLEDGEMENT
The Directors would like to extend their deep regards and sincere
thanks to company''s suppliers, domestic and international dealers,
representatives, service providers, financial institutions and
technical consultants for their continued support.
The directors also acknowledge and appreciate the commitment of all the
employees who are putting their best efforts towards company''s goals
and objectives.
For and on behalf of the Board of Directors of
Haryana Leather Chemicals Limited
Place : GURGAON N.K. JAIN PANKAJ JAIN
Date : 5th July, 2013 Chairman Managing Director-cum-Vice Chairman
Mar 31, 2012
The directors of Haryana Leather Chemicals Ltd. are pleased to present
the 27th Annual Report and Audited Statement of the companyÃs
accounts for the year ended on 31st March, 2012.
FINANCIAL RESULTS
A summary of the financial results for the year 2011-2012 is given
below:
2011 - 12 2010 - 11
(Rs. in Lacs) (Rs. in Lacs)
Sales Turnover (Net of Excise) 3219.97 3462.54
Gross Profit 294.59 390.56
Deductions
Depreciation 74.62 72.29
Interest 17.21 15.45
Profit before Tax 202.76 302.82
Less: Provision for I
ncome Tax for the year 47.15 82.93
Less: Provision for Fringe
Benefit Tax for the Year - -
; Less: Provision for
Taxation/FBT earlier year 1.43 12.43
Add: Provision for Income
Tax written back 18.45 -
Less: Previous year Adjustment - -
: Less/(Add): Deferred Tax Liability 2.71 21.93
Profit after Tax and
available for Appropriation 169.92 185.53
Less: Provision for Dividend 29.45 29.45
Less: Provision for Dividend Tax 5.01 5.01
Less: Transfer to General Reserve 20.32 22.66
Profit carried to Balance Sheet 115.14 128.41
OPERATIONS
During the year the company has achieved a sales turnover of Rs. 3220
lacs against Rs. 3462 lacs for the previous year. The net profit for
the year is 169.92 lacs against Rs. 185.53 lacs for the previous year.
The exports are at Rs.1092 lacs compared to the previous year's exports
of Rs.1420 lacs.
The company has recorded higher sales in domestic market but has not
been able to maintain its growth momentum in export market in
comparison to last year. A significant drop in exports, coupled with
higher input costs have caused lower overall profit.
DIRECTORS
Pursuant to the provisions of the Articles of Association of the
company, the directors - Mr. N.K. Jain, Mr. V.K. Garg and Mr. K.S.V.
Menon retire by rotation at the forthcoming Annual General Meeting to
be held on 25th September, 2012 and being eligible they offer
themselves for re-appointment.
CORPORATE GOVERNANCE
A certificate on the compliance of conditions of corporate governance
has been obtained from the Statutory Auditors of the company and the
same has been given below as Annexure.
DIRECTORSÃ RESPONSIBILITY STATEMENT AS PER SECTION 217!2AA) OF THE
COMPANIES ACT, 1956.
The Board of Directors of the company confirms that:
i. during the preparing of the annual accounts, the applicable
accounting standards have been followed and no material departure has
taken place;
ii. the selected accounting policies were applied consistently and the
directors made judgments and estimates that are reasonable and prudent
so as to give an accurate view of the state of affairs of the company
as at March 31, 2012 and of the profit of the company for the year
ended on that date;
iii. proper and sufficient care has been taken 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. annual accounts have been prepared on an ongoing concern basis.
FIXED DEPOSIT
The company has not accepted / renewed any fixed deposits during the
period under review.
QUALITY CONTROL
The company has derived significant benefits from SAP ERP QC module for
tracking down quality complaints for incoming and outgoing materials.
Most vendors have started certifying materials for REACH (Registration,
Evaluation and Authorization of Chemicals) compliances. There are
negligible incidences of quality problems from the customers after
standardization of QC procedures implemented at the new laboratories
under centralized control. A deeper focus on REACH compliances about
banned substances is in force - especially for export markets. Key
material substitution to conform to REACH updates have been
standardized and implemented in production. The company is strictly
complying with the quality policy and the quality objectives outlined
in the ISO 9001-2000 and ISO 14001 internal system.
EXPORT OPERATIONS
CompanyÃs export operations suffered a brief set back due to poor
economic conditions in Europe which has direct effect on retail
spending on leather goods. A significant drop in exports to Turkey -
the European hub for leather production - has been the key cause for
lower export revenue. The company is in advanced stages of negotiation
with customers from Turkey on developing low cost formulations to
regain the lost ground.
CompanyÃs efforts for revival of customers in Bangladesh who had
stopped buying due to price increase have yielded encouraging results.
Orders from Chinese customers are stable and are likely to grow due to
expansion in product and customer base.
TECHNOLOGY DEVELOPMENT
The technology development and commercialization of the indigenously
developed Polyurethane Dispersions have been limited to first phase due
to slower response and weak market conditions for high -end products.
The outlay of the project partially funded by TDB (Technology
Development Board) of Govt, of India has been trimmed for speedier
implementation and better operational control.
The technology development and market response for the new range of
products targeted for PVC market is very promising. Fabrication of new
pressure nozzle-type spray dryer equipment is progressing well and
likely to be completed by March 2013 after a slight delay in import of
key components and the installation.
The commercialization of ÃPolymeric FatliquorsÃ, whose technology
was developed under assistance from DSIR (Department of Scientific &
Industrial Research), has been deferred for some time due to financial
constraints and will be taken up only after repayment of TDB
assistance.
DIVIDEND
Inspite of lower profits and reduced cash flow, the directors have
recommended continuation of dividend of 6%. PERSONNEL & INDUSTRIAL
RELATION
The company continues to deploy HR practices in-line with current
industry trends. Performance monitoring, closer interaction of senior
management with operating staff and early redressal of minor grievances
remain the backbone of personal and industrial relations. The yearly
bonus system has also motivated key executives to participate in
growth- related ideas. New ideas on team working and collaborative
interactions are being discussed across the board for more inclusive
approach towards personnel management.
Industrial relation remained cordial across all segments of skilled and
unskilled workforce.
ENVIRONMENT & POLLUTION CONTROL MEASURES
Waste water minimization and treatability studies conducted under
guidance of M/S Expertise limited UK have yielded significant benefits.
The treatment cycle time, energy consumed in treatment and output
parameters have been reviewed periodically and updated. All the
statutory regulations of state pollution control board and the renewal
of required permissions are being monitored at the highest level of
management at plant site. Inline with the directives of state pollution
control board, the company is delivering all solid waste to Gujarat
Enviro Protection & Infrastructure (Haryana) Pvt. Ltd. (GEIPL) common
treatment facility for disposal.
ACKNOWLEDGEMENT
The Directors express their gratitude and sincere thanks to their
various business partners, suppliers, domestic & international dealers,
financial institutions and technical consultants, for their continued
contribution towards the companyÃs growth.
The directors also appreciate the motivation and commitment of all the
employees who are working hard towards companyÃs goals and
objectives.
For and on behalf of the Board
of Directors
of Haryana Leather
Chemicals Limited
Place : New Delhi N.K. JAIN PANKAJ JAIN
Date : 25th day of August, 2012 Chairman Managing Director
-cum-Vic Chairman
Mar 31, 2010
The directors are pleased to present the TWENTY FIFTH Annual Report
and Audited statement of accounts of the company for the year ended on
31st March, 2010.
FINANCIAL RESULTS
A summary of financial results for the year 2009-2010 is given below :
(Rs. in Lacs) (Rs. in Lacs)
2009-2010 2008-2009
Sales Turnover (Net of Excise) 3236.07 2298.86
Gross Profit 437.98 248.40
Deductions
Depreciation 66.50 65.79
Interest 7.14 4.36
Profit before Tax 364.34 178.25
Less: Provision for Income
Tax for the year 75.00 39.85
Less: Provision for Fringe Benefit
Tax for the Year 0.00 4.00
Less: Provision for Taxation/FBT
Earlier year 0.00 0.80
Add: Provision for Income
Tax written back 13.57 3.25
Less: Previous year Adjustment 0.00 0.00
Less/(Add): Deferred Tax (0.92) (5.37)
Profit after Tax and available
for Appropriation 303.83 142.22
Less: Provision for Dividend 29.45 29.45
Less: Provision for Dividend Tax 5.01 5.01
Less: Transfer to General Reserve 40.40 16.16
Profit carried to Balance Sheet 228.97 91.60
OPERATIONS
During the year the company has achieved a sales turn over of Rs.3236
lacs against Rs.2299 lacs for the previous year and net profit for the
year is Rs.303.83 lacs against Rs.142.22 lacs for the previous year.
During the year companys exports are Rs.1260 lacs compared to the
previous years exports of Rs.848 lacs.
The company has been able to achieve higher sales in comparison to last
year. The company has also recorded higher profits due to increase in
sales and introduction of effective cost control measures.
DIRECTORS
During the year pursuant to the provisions of the Articles of
Association of the company Mr. N.K. Jain, Dot. Mesimo Medini and
Retd.Lt.Gen.H.C. Dutta, Directors retire by rotation at the forthcoming
Annual-General Meeting to be held on 17.09.2010 and being eligible they
offer themselves for re-appointment.
CORPORATE GOVERNANCE
A certificate on the compliance of conditions of corporate Governance
has been obtained from the Statutory Auditors of the company and the
same is given as Annexure.
DIRECTORS RESPONSIBILITY STATEMENT AS PER SECTION 217(2AA) OF THE
COMPANIES ACT, 1956.
The Board of Directors of the company confirms:
i. that in the preparation of the annual accounts, the applicable
accounting standards have been followed and there has been no material
departure; ii. that the selected accounting policies were applied
consistently and the directors 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, 2010 and of the profit of
the company for the year ended on that date;
iii. that proper and sufficient care has been taken 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 annual accounts have been prepared on a going concern basis.
FIXED DEPOSIT
The company has not accepted / renewed any fixed deposits during the
period under review.
QUALITY CONTROL
The company continues with its present quality system of ISO 9001-2000.
The company is strictly complying with the quality policy and the
quality objectives outlined in the system. The company has also
installed the document and control system on the environment management
system defined under ISO 14001. The external audit is due in next few
months. The company is also planning to merge the document system of
quality and environment as per new ISO standards.
EXPORT OPERATIONS
Companys export operations continue to be focus of growth, yielding a
robust growth of 40% in leather chemical exports. The EOU unit has
maintained its customer and product base - even in those countries
which were hit by economic recession. With new enquiries from African
and CIS countries, the international business potential will require
even more attention from top management. The export of non leather
products is yet to give any significant result and a new product line
up is under development to harness the potential.
TECHNOLOGY DEVELOPMENT
The research project on Polymeric Fatliquors sponsored by DSIR
(Department of Scientific & Industrial Research) has been completed to
the satisfaction of sponsoring authority. The company hopes to launch
the products by middle of 2011. The company completed the project with
a total cost of Rs.182 lacs as against the projected cost of Rs.227
lacs.
The company has successfully completed the trial production of PVC
Acrylic Processing Aids (APA) and Acrylic Impact Modifiers (AIM). The
seed marketing results have been very encouraging. The company is
considering setting up a new production facility for which the
technical feasibility has been completed. A new spray drying system is
being considered to ease off the production constraints and also to
address the environmental concerns during production.
DIVIDEND
Considering a stable cash flow situation, adequate profits and accruals
during the year, your Directors are glad to recommend a dividend of 6%.
PERSONNEL & INDUSTRIAL RELATION
After the introduction of the new Performance Appraisal System -
introduced last year - there has been a significant improvement in
motivation and responsibility levels across all staff, managers and
executives. The new talent pool of key executives was able to handle
some challenging tasks and will continue to be more focused on product
development, technical services, safety and environmental issues.
Industrial relation remained cordial across all segment of skilled and
unskilled workforce.
ENVIRONMENT & POLLUTION CONTROL MEASURES
The companys efforts on waste water minimization have yielded huge
reduction of effluent water. The water treatment system has
consistently met with all the statutory requirements. The company has
started to use Gujarat Enviro Protection & Infrastructure (Haryana)
Pvt. Ltd (GEIPL) common treatment facility for disposal of solid waste
- as per the directives of state pollution control board.
ACKNOWLEDGEMENT
The Directors express their gratitude and sincere thanks to their
various business partners, suppliers, domestic & international dealers
and financial institutions, who have contributed in the companys
growth. The directors appreciate the diligence, dedication and
commitment of all those employees, who have worked hard towards
companys growth.
For and on behalf of the Board of
Directors of Haryana Leather
Chemicals Limited
Place : New Delhi N.K. JAIN PANKAJ JAIN
Date : 10th day of
August, 2010 Chairman Managing
Director-cum-
Vice Chairman
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