Home  »  Company  »  Integrated Tech  »  Quotes  »  Directors Report
Enter the first few characters of Company and click 'Go'

Directors Report of Integrated Technologies Ltd.

Mar 31, 2014

Dear Members,

The Directors have pleasure in presenting the Twenty Eighth Annual Report together with Audited Accounts of the Company for the year ended 31st March 2014.

FINANCIAL (Rs. In Lacs) Particulars 2013-14 2012-13

Profit before tax (65.61) (76.25)

Less : Provision for taxation 53.28 26.17

Profit After tax (118.89) (102.42)

Extraordinary income 0.00 203.88

Profit After Extraordinary income (118.89) 101.46

Balance profit from last year (224.71) (326.17)

Balance profit carried to balance sheet (343.60) (224.71)

Earnings per share (face value Rs. 10/-) - Basic and Diluted before extraordinary item (in Rs.) (2.49) (2.14)

- Basic and Diluted after extraordinary item (in Rs.) (2.49) 2.12

*Previous year figures have been regrouped / rearranged wherever considered necessary.

DIVIDEND

In view of the foregoing, the Directors do not recommend any dividend for the year.

DIRECTORS

It is proposed to re-appoint Mr. Virendra Kashyap (holding DIN: 03423043), who is retiring by rotation on the Board of Directors, the appointment forms part of the business of the ensuing Annual General Meeting of the Company.

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to the requirement under Section 217(2AA) as inserted by the Companies (Amendment) Act, 2000 with respect to Directors'' Responsibilities Statement, it is hereby confirmed:

(i) That in the preparation of the Annual Accounts for the financial year ended 31st March, 2014, the applicable Accounting Standards had been followed along with proper explanation relating to material departures;

(ii) That the Directors had selected such Accounting Policies and applied them consistently and made judgments and estimates that were 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 had 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 had prepared the accounts for the Financial Year ended 31st March, 2014 on a ''going concern'' basis.

CORPORATE GOVERNANCE-

Your Company has taken adequate steps to ensure compliance with the provisions of Corporate Governance as prescribed under the Listing Agreement. The report on Corporate Governance along with the Auditor''s Certificate as stipulated under Clause 49 of the Listing Agreement along with Management Discussion and Analysis Statement forms part of the Annual Report. The details of the Code of Conduct and CEO/CFO Certification are furnished in Corporate Governance Report.

AUDIT COMMITTEE

As required under section 292A of the Companies Act, 1956 the Company has constituted an Audit Committee comprising of M r. Devendra Manchanda, M r. Rajeev Bali and Mr. Virendra Kashyap. Mr. Devendra Manchanda continues as the Chairman of the Committee. The primary functions of the Committee comprises of reporting on accounting policies and procedures, periodical review of financial results and pointing out major discrepancies, if any, in the results, examining the internal control systems and adequacy thereof.

AUDITORS & THEIR REPORT

M/s S. K. Mittal and Co., Chartered Accountants retires at the close of this Annual General Meeting and is eligible for re-appointment. The Company has received confirmation from them that their appointment will be within the limits prescribed under provision of Companies Act, 2013. The Audit Committee of the Board has recommended their re-appointment for FY 2014-15. The necessary resolution is being placed before the shareholders for approval.

Notes to the accounts annexed to the Auditors'' Report are self-explanatory and need no explanation, as there is no qualifying remark of the Auditors.

FIXED DEPOSITS

The Company did not invite / accept any fixed deposits during the year under review.

SHARES

11,16,458 of the Company''s paid up Equity capital has been dematerialized and the Balance of 36,65,052 is in physical form as on 31st March, 2014. The Company''s Registrar is M/s. Skyline Financial Services Pvt. Ltd. and their address is detailed in the compliance report on the corporate Governance forming the part of this report. The Listing fee has been paid to Bombay Stock exchange for the Financial Year 2014-15.

FUTURE OUTLOOK

The PCB industry may have seen positive growth in 2012 at $ 60.6 Billion (Source N.T. Information), but various reports suggest there may have been a drop of over 4% in for 2013. There have been dramatic changes in technology, for the electronics industries and therefore the PCB industry necessitating a proliferation of materials to cater to diverse, high end uses and product profiles especially the use of high performance laminates. BPA Technology Consulting projects growth at US$ 68.5 Billion by 2016, with China still accounting for over 51% of the world''s total production. However, high technology applications such as defence, aerospace, proprietary technologies and designs etc. are increasingly getting localized, with this trend beginning to gather momentum in the past few years. Also gaining ground a is the concept now being dubbed as "re-shoring", with companies increasingly moving production back to their home countries as well.

The Indian PCB market continues to grow at an acceptable pace, with no new large ticket investments in the electronics industry, or in PCB manufacturing per se. In fact growth prospects seem to have stagnated at below 17% CAGR, a total market of approx. US$ 600 Million, as demand for electronics remains stagnant. Domestic production too has settled at approx. US$ 200 Million, with the rest being imported, thereby still presenting an opportunity to existing domestic PCB producers, albeit in the higher technology space. However, with very little or no substantial investments forthcoming, this trend of import of PCBs of all types and materials will continue.

The Company expected to receive permission to exit from the 100% EOU Scheme for which it had applied well over four years ago and in was forced to suspended production till receipt of the de-bonding permission from the Commerce Ministry (NSEZ). Keeping in view continuing and exceptional delays in the de-bonding process, the Company''s plans to recommence business have been virtually stalled by inaction by Governmental authorities. The Company can only hope that it will be in a position to restart operations this financial year, with a changed politico-administrative environment which industry in India sees as a positive indicator, with focus on implementation of stalled projects.

(b) Conservation of Energy and Technology Absorption:

The Company has been pursuing an active policy of identifying and using eco-friendly materials and processes in its production processes, as also in every other sphere of activity. The Company estimated 28% savings in its power/energy consumption due to this policy emphasis in its operations while in production. The Company shall continue in its endeavors to identify new means of for such energy conservation and savings on an ongoing basis as a matter of policy.

(c) Employees:

As required by the provisions of Section 217(2A) of the Companies Act, 1956, read with Companies (Particulars of Employees) Rules, 1975 (as amended), the names and other particulars of the employees drawing remuneration more than Rs. 5,00,000/- per month or Rs. 60,00,000/- per annum are required to be given forming part of the Directors'' Report. None of the employees of the company are in receipt of remuneration in excess of the prescribed limit.

Acknowledgments

Your Directors would like to express their grateful appreciation for the assistance and co-operation received from our valued shareholders during the year under review. Your Directors wish to place on record their deep sense of appreciation for the devoted services of Executives, Staff and Workers of the Company towards the growth and development of the Company.

For and on behalf of the Board of Directors

Place : New Delhi Devendra Manchanda Rajeev Bali Dated : 02.09.2014 Director Managing Director


Mar 31, 2012

The Directors have pleasure in presenting the Twenty Sixth Annual Report together with Audited Accounts of the Company for the year ended 31st March 2012.

FINANCIAL RESULTS (Rs. In Lacs)

2011-12 2010-11

Profit before tax (35.90) (124.17)

Less : Provission for Deferred Tax Assets 126.93 0

Profit After tax 91.03 (124.17)

Balance profit from last year (417.20) (293.03)

Balance profit carried to balance sheet (326.17) (417.20)

Earning per share (face value Rs. 10/-)

- Basic and Diluted (in Rs.) 1.90 (2.60)

*Previous year figures have been regrouped / rearranged wherever considered necessary.

DIVIDEND

In view of the foregoing, the Directors do not recommend any dividend for the year.

DIRECTORS

During the year under review, Mrs. Krishna Bali and Mr. Aditya Prasad have resigned w.e.f 27.10.2011 and it is proposed to re-appoint Mr. Rajeev Bali who is retiring by rotation on the Board of Directors, the appointment forms part of the business of the ensuing Annual General Meeting of the Company.

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to the requirement under Section 217(2AA) as inserted by the Companies (Amendment) Act, 2000 with respect to Directors'' Responsibilities Statement, it is hereby confirmed:

(i) that in the preparation of the annual accounts for the financial year ended 31st March, 2012, the applicable accounting standards had been followed along with proper explanation relating to material departures;

(ii) that the directors had selected such accounting policies and applied them consistently and made judgments and estimates that were 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 had 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 had prepared the accounts for the financial year ended 31st March, 2012 on a ''going concern'' basis.

CORPORATE GOVERNANCE

Your Company has taken adequate steps to ensure compliance with the provisions of Corporate Governance as prescribed under the Listing Agreement. The report on Corporate Governance alongwith the Auditor''s Certificate as stipulated under Clause 49 of the Listing Agreement along with Management Discussion and Analysis Statement forms part of the Annual Report. The details of the Code of Conduct and CEO/CFO Certification are furnished in Corporate Governance Report.

AUDIT COMMITTEES

As required under section 292A of the Companies Act, the Company has appointed an Audit Committee comprising of Mr. Devendra Manchanda, Mr. Rajeev Bali and Mr. Virendra Kashyap. For the time being post the resignation of Mr. Aditya Prasad and pending appointment of an Independent Director Mr. Devendra Manchanda continues as the Chairman of the Committee. The primary functions of the Committee comprises of reporting on accounting policies and procedures, periodical review of financial results and pointing out major discrepancies, if any, in the results, examining the internal control systems and adequacy thereof. The Committee shall meet as and when required and at least twice in a year.

AUDITORS & THEIR REPORT

M/s S. K. Mittal and Co., Chartered Accountants retire at the close of this Annual General Meeting and is eligible for re-appointment. The Company has received confirmation from them that their appointment will be within the limits prescribed under Section 224(1B) of the Companies Act, 1956. The Audit Committee of the Board has recommended their re-appointment for the year 2012-13. The necessary resolution is being placed before the shareholders for approval.''

Notes to the accounts annexed to the Auditors'' Report are self-explanatory and need no explanation, as there is no qualifying remark of the Auditors.

FIXED DEPOSITS

The Company did not invite / accept any fixed deposits during the year under review.

FUTURE OUTLOOK

The year 2011 has been one of cautious optimism for some and pessimism for others in the PCB industry. The electronic supply chain growth had recently stalled in many regions. Europe''s tighter fiscal policies had squeezed consumer purchasing power and there were ongoing sovereign-debt tensions. In the U.S., high unemployment and politics as elections come nearer raises its own issues. China has seen rising costs, labour shortages and a real-estate bubble looms large. For Japan the strong Yen and ongoing repercussions from the earthquake and nuclear disaster has had severe implications.

All told, despite a resilient German market, the recent return to recessionary scenario clouds the international market in general. While the industry as a whole is still expected to grow to approx US$ 76 Billion by 2015, the European crisis and shaky and uncertain growth in the US warrant a relook at such projections. While Asian growth continues, India and China look increasingly inward due to their strong and growing domestic markets.

The Indian PCB market is still growing at a healthy pace, with large investments in the mobile communications, telecom, industrial, consumer electronics, EMS, and automotive industries already made. The growth is expected to still touch 30% per annum. The total market is approx. US$ 2 Billion. Domestic production is a little over US$ 300 Million, with the rest being imported, thereby presenting a large opportunity to domestic PCB producers.

The Company has thus refocused its business towards a much higher presence in the domestic market, and relegation of exports to the future when growth resumes to levels sustaining healthy pricing and returns, the falling Rupee nonwithstanding. The Company expects to be receive permission to exit from the 100% EOU Scheme for which it had applied well over a year ago very soon, and has in the interim again suspended production till receipt of the de-bonding permission from the Commerce Ministry (NSEZ). In any event, with import duties for most raw materials and machinery for PCB manufacture being zero, the Company foresees a better product, market and hence financial positioning as a major domestic player.

(a) Conservation of Energy and Technology Absorption:

The Company has been pursuing an active policy of identifying and using eco-friendly materials and processes in its production processes, as also in every other sphere of activity. The Company estimated 28% savings in its power/energy consumption due to this policy emphasis in its operations while in production. The Company shall continue in its endeavors to identify new means of for such energy conservation and savings on an ongoing basis as a matter of policy.

(b) Employees:

As required by the provisions of Section 217(2A) of the Companies Act, 1956, read with Companies (Particulars of Employees) Rules, 1975 (as amended), the names and other particulars of the employees drawing remuneration more than Rs. 5,00,000/- per month or Rs. 60,00,000/- per annum are required to be given forming part of the Directors'' Report. None of the employees of the company are in receipt of remuneration in excess of the prescribed limit.

Acknowledgments

Your Directors would like to express their grateful appreciation for the assistance and co-operation received from our valued shareholders during the year under review. Your Directors wish to place on record their deep sense of appreciation for the devoted services of Executives, Staff and Workers of the Company towards the growth and development of the Company.

For and on behalf of the Board of Directors

Place : New Delhi (Devendra Manchanda) (Rajeev Bali)

Dated : 13.08.2012 Director Managing Director


Mar 31, 2011

The Directors have pleasure in presenting the Twenty Fifth Annual Report together with Audited Accounts of the Company for the year ended 31st March 2011.

FINANCIAL RESULTS (Rs. In Lacs)

2010-11 2009-10

Sale of Products and other income 71.83 175.74

Manufacturing and other expenses 297.83 187.77

Depreciation 39.10 36.69

Interest 0.00 0.00

Profit/(Loss) before tax (124.16) (80.35)

*Previous year figures have been regrouped / rearranged wherever considered necessary.

DIVIDEND

In view of the foregoing, the Directors do not recommend any dividend for the year.

DIRECTORS

It is now proposed to re-appoint Mr. K.R. Shiva Kumar as a Director liable to retire by rotation on the Board of Directors the appointment forms part of the business of the ensuing Annual General Meeting of the Company.

During the year under review, Mr. Venketesh Narayan Shukla and Mrs. Amita Kapoor have resigned as directors of the company w.e.f. 2nd February, 2011 and 4th May 2011 respectively.

Mr. Virendra Kashyap and Mr. Aditya Prasad who were appointed as additional director on 10th February, 2011 and 4th May 2011 respectively shall be confirmed in the coming shareholders meeting.

REVOCATION OF SUSPENSION OF SHARES TRADING

As you are aware that the trading of shares of the company was under suspension. With its continuous sincere efforts the Company has been able to get the revocation of suspension of trading of its shares with BSE. The trading of shares resumed w.e.f 28th June, 2011. In future the Company is committed to serve the stakeholders to increase the investment value.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the requirement under Section 217(2AA) as inserted by the Companies (Amendment) Act, 2000 with respect to Directors' Responsibilities Statement, it is hereby confirmed:

(i) That in the preparation of the annual accounts for the financial year ended 31st March, 2011, the applicable accounting standards had been followed along with proper explanation relating to material departures except Accounting Standard-22;

(ii) That the directors had selected such accounting policies and applied them consistently and made judgments and estimates that were 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 had 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 had prepared the accounts for the financial year ended 31st March, 2011 on a 'going concern' basis.

CORPORATE GOVERNANCE

Your Company has taken adequate steps to ensure compliance with the provisions of Corporate Governance as prescribed under the Listing Agreement. The report on Corporate Governance along with the Auditor's Certificate as stipulated under Clause 49 of the Listing Agreement along with Management Discussion and Analysis Statement forms part of the Annual Report

AUDIT COMMITTEE

As required under Section 292A of the Companies Act the Company has appointed an Audit Committee comprising of Mr. Devendra Manchanda, Mr. Virendra Kashyap, Mr. Adiya Prasad and Mr. Rajeev Bali. Mr. Devendra Manchanda continues as the Chairman of the Committee. The primary functions of the Committee comprises of reporting on accounting policies and procedures, periodical review of financial results and pointing out major discrepancies, if any, in the results, examining the internal control systems and adequacy thereof. The Committee shall meet as and when required and at least twice in a year.

AUDITORS & THEIR REPORT

Auditors of the Company, M/s S.K. Mittal & Co., Chartered Accountants, are retiring at this Annual General Meeting and are proposed to be appointed at the ensuing Annual General Meeting.

Notes to the accounts annexed to the Auditors' Report are self-explanatory and need no explanation, as there is no qualifying remark of the Auditors. FIXED DEPOSITS The Company did not invite / accept any fixed deposits during the year under review.

FUTURE OUTLOOK

The Company being a 100% EOU, is impacted by developments in the international markets, especially net importing nations / continents which are largely USA / North America, Western Europe, and Scandinavia. Here it is pertinent to highlight such developments and their impact on the business potential in terms of exports from India / Asia.

1. Global market scenario in 2010 (source IPC, USA)

- Approximately 2,600 PCB fabricators produced an estimated US $54.77 billion in 2010.

. PCB production grew in all regions in 2010 as the industry recovered from the recession.

. Production grew by 6.9% in North America, 14.4% in Europe and 21.1% in Asia, increasing Asia's share of world PCB production to 87%.

. Rigid-flex was the highest growth category. Metal-core PCBs, while less than one percent of world PCB production, was the second fastest growing category in 2010.

2. While the industry as a whole is expected to grow to approx US$ 76 Billion by 2015, the European crisis and shaky and uncertain growth in the US warrant a relook at such projections.

3. The positives emanating from such global developments point to robust Asian growth, with countries such as Indian and China looking increasingly inward due to a strong and growing domestic market.

4. The Indian PCB market is growing rapidly, with large investments in the mobile communications, telecom, industrial, consumer electronics, and automotive industries. Importantly, most of the top ten Electronics Manufacturing Services (EMS) companies worldwide have set up assembly and design facilities in the recent past. With the entry of a number of international companies in these industries, the growth is expected to exceed 30% per annum.

The total market assessed currently is approx. US$ 2 Billion. Domestic production is US$ 300 Million, with the rest being imported, thereby presenting a large opportunity to domestic PCB producers.

In conclusion, while global growth is highly uncertain from here on, and the likely fall-out in terms of protectionism that is reasonably certain to kick in soon as the developed world struggles to prevent slippage into a recessionary phase again, the future growth opportunities are clearly emerging in the Asian economies including the BRIC countries. It is time indeed to look at growth in home markets for the foreseeable medium term.

STATUTORY STATEMENTS UNDER SECTIONS 217 (1) (E) AND 217 (2A) OF THE COMPANIES ACT, 1956

(a) Foreign Exchange Earnings and Outgo:

The information under this head is as follows: (Rs. In Lacs)

Foreign Currency Earnings Foreign Currency Outgo

(1) Travelling (foreign)

(2) Import of Machinery 18.85 3 Import of raw materials 34.37

(4) Consumption of raw materials 36.76

(b) Conservation of Energy and Technology Absorption:

The Company has been pursuing an active policy of identifying and using eco-friendly materials and processes in its production processes, as also in every other sphere of activity. The Company estimated 28% savings in its power/energy consumption due to this policy emphasis in its operations while in production. The Company shall continue in its endeavors to identify new means of for such energy conservation and savings on an ongoing basis as a matter of policy.

(c) Employees

As required by the provisions of Section 217(2A) of the Companies Act, 1956, read with Companies (Particulars of Employees) Rules, 1975 (as amended), the names and other particulars of the employees drawing remuneration more than Rs. 5,00,000/- per month or Rs.60,00,000/- per annum are required to be given forming part of the Directors' Report. None of the employees of the company are in receipt of remuneration in excess of the prescribed limit.

Acknowledgements

Your Directors would like to express their grateful appreciation for the assistance and co-operation received from our valued shareholders during the year under review. Your Directors wish to place on record their deep sense of appreciation for the devoted services of Executives, Staff and Workers of the Company towards the growth and development of the Company.

For and on behalf of the Board of Directors

Place : New Delhi (Devendra Manchanda) (Rajeev Bali)

Dated : 12.08.2011 Director Managing Director


Mar 31, 2010

The Directors have pleasure in presenting the Twenty Forth Annual Report together with Audited Accounts of the Company for the year ended 31st March 2010.

FINANCIAL RESULTS (Rs. In Lacs)

2009-10 2008-09

Sale of Products and other income 175.74 29.78

Manufacturing and other expenses 187.77 18.33

Depreciation 36.69 39.22

Interest 0.00 0.00

Profit/(Loss) before tax (80.35) (87.35)



*Previous year figures have been regrouped / rearranged wherever considered necessary.

DIVIDEND

In view of the foregoing, the Directors do not recommend any dividend for the year.

DIRECTORS

There was no change in the constitution of the Board of Directors during the year under consideration. However, it is now proposed to appoint Mr. V. N. Shukla in place of Mr. Narendra Sharma, Director retiring by rotation on the Board of Directors, the appointment forms part of the business of the ensuing Annual General Meeting of the Company.

During the year under review, Mr. Ravi Jain has resigned as director of the company w.e.f. 10th May, 2010.



DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to the requirement under Section 217(2AA) as inserted by the Companies (Amendment) Act, 2000 with respect to Directors Responsibilities Statement, it is hereby confirmed:

(i) that in the preparation of the annual accounts for the financial year ended 31st March, 2010, the applicable accounting standards had been followed along with proper explanation relating to material departures;

(ii) that the directors had selected such accounting policies and applied them consistently and made judgments and estimates that were 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 had 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 had prepared the accounts for the financial year ended 31st March, 2010 on a going concern basis.

CORPORATE GOVERNANCE

Your Company has taken adequate steps to ensure compliance with the provisions of Corporate Governance as prescribed under the Listing Agreement. The report on Corporate Governance alongwith the Auditor’s Certificate as stipulated under Clause 49 of the Listing Agreement along with Management Discussion and Analysis Statement forms part of the Annual Report.

AUDIT COMMITTEE

As required under section 292A of the Companies Act the Company has appointed an Audit Committee comprising of Mr. Devendra Manchanda, Mr. Rajeev Bali and Mrs. Krishna Bali. Mr. Devendra Manchanda continues as the Chairman of the Committee. The primary functions of the Committee comprises of reporting on accounting policies and procedures, periodical review of financial results and pointing out major discrepancies, if any, in the results, examining the internal control systems and adequacy thereof. The Committee shall meet as and when required and at least twice in a year.

AUDITORS & THEIR REPORT

Auditors of the Company, M/s G. K. Kedia & Co., Chartered Accountants, are retiring at this Annual General Meeting and M/s S.K. Mittal & Co. are proposed to be appointed at the ensuing Annual General Meeting.

Notes to the accounts annexed to the Auditors Report are self-explanatory and need no explanation, as there is no qualifying remark of the Auditors.

FIXED DEPOSITS

The Company did not invite / accept any fixed deposits during the year under review.

FUTURE OUTLOOK

The Company has revived its production and commercial operations, consequent to successful implementation of the BIFR Sanctioned Scheme, and to receiving all requisite approvals required from Ministry of Commerce / NSEZ / Customs / DGFT etc. in December 2008. The Company commenced sales in the domestic market, which has remained stable despite the global melt-down world-wide, including the PCB industry, which impacted China as well very substantially.

A US$ 48 billion industry had been growing at CAGR of over 9 % per annum from 2004 till mid – 2008 when international markets once again shrank considerably from US $ 52 Billion in 2007 with the onset of the recession to $ 39 Billion in 2009. It is now expected to grow as such up to 2015 to over US$ 76 Billion. While the outlook for the industry is not very encouraging internationally, for the time being, it is expected to improve gradually starting 2010, especially from the 2nd half of the year, and expected to reach $ 52 billion again by 2011-12.

The domestic PCB market : is growing rapidly, with large investments in the mobile communications, telecom, industrial, consumer electronics, and automotive industries. Importantly, most of the top ten Electronics Manufacturing Services (EMS) companies worldwide have set up assembly and design facilities in the recent past. With the entry of a number of international companies in these industries, the growth is expected to exceed 30% per annum.

The total market assessed currently is approx. US$ 2 Billion. Domestic production is US$ 300 Million, with the rest being imported, thereby presenting a large opportunity to domestic PCB producers.

The Company thus plans to recommence exports by early to mid - 2011 in line with world markets revival of global market.

The promoters have invested considerably in reviving the plant and it’s operations including refurbishing the machinery, replacing obsolete equipment, infusing working capital, and adding new customers to its’ existing ones.

The Company has adequate business orders for domestic sales, as also deemed exports. The Company expects to achieve considerably better sales and operating results in the FY 2010-11 as it increases domestic sales and exports commencing 2011.

STATUTORY STATEMENTS UNDER SECTIONS 217 (1) (E) AND 217 (2A) OF THE COMPANIES ACT, 1956 (a) Foreign Exchange Earnings and Outgo:

The information under this head is as follows: (Rs. In Lacs)

Foreign Currency Earnings

Foreign Currency Outgo

(1) Travelling (foreign) -

(2) Import of Machinery 2.634

(3) Import of raw materials 36.842

(4) Consumption of raw materials 33.322

(5) Fees and subscription 1.13



b) Conservation of Energy and Technology Absorption:

The Company has been pursuing an active policy of identifying and using eco-friendly materials and processes in its production processes, as also in every other sphere of activity. The Company estimated 28% savings in its power/energy consumption due to this policy emphasis in its operations while in production. The Company shall continue in its endeavors to identify new means of for such energy conservation and savings on an ongoing basis as a matter of policy.

(c) Employees:

As required by the provisions of Section 217(2A) of the Companies Act, 1956, read with Companies (Particulars of Employees) Rules, 1975 (as amended), the names and other particulars of the employees drawing remuneration more than Rs. 2,00,000/- per month or Rs. 24,00,000/- per annum are required to be given forming part of the Directors’ Report. None of the employees of the company are in receipt of remuneration in excess of the prescribed limit.

Acknowledgments

Your Directors would like to express their grateful appreciation for the assistance and co-operation received from our valued shareholders during the year under review. Your Directors wish to place on record their deep sense of appreciation for the devoted services of Executives, Staff and Workers of the Company towards the growth and development of the Company.

For and on behalf of the Board of Directors

Place : New Delhi (Rajeev Bali)

Dated : 14.08.2010 Managing Director

Find IFSC