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Directors Report of Krebs Biochemicals & Industries Ltd.

Mar 31, 2015

The Directors submit their report for the six months ended 31st March, 2015.

1. Financial Performance:

The key financial summary of your company for the six months period from 1st October, 2014 to 31st March, 2015 is as under:

(Rs. in lakhs)

Particulars 2014-15 2013-14

(01.10.2014 to 31.03.2015 (01.07.2015 to 30.09.2014)

Net Sales Nil Nil

Other Income 1.12 2.13

Total Income 1.12 2.13

Expenditure 490.25 400.47

PBDIT (489.13) (398.34)

Loss on sale of Assets Nil 3.41

PBDIT(After Extra Ordinary Items) (489.13) (401.75)

Finance Charges 402.85 8.41

Depreciation 187.13 Nil

Profit/(Loss) Before Tax (1079.11) (410.16)

Exceptional Items 295.10 15.55

Deferred Tax Asset Nil (39.99)

Taxes of earlier years Nil Nil

Net profit/(Loss) after Tax (784.01) (434.60)

Prior Period Adjustments Nil Nil

Profit/(Loss) after prior period adjustments (784.01) (434.60)

Add: balance brought Forward (4630.79) (4196.19)

Less: Depreciation (32.66) Nil

Add: Transferred from Profit & Loss Account (784.01) (434.60)

Balance Carried to Balance Sheet (5447.46) (4630.79)

2. Directors' Comments on Auditor's Report:

S. No Basis for Qualified Opinion Explanation by the Board

1. Reference is invited to Note 15 of the Financial statements; the The dues are long pending. The Company's Non Current Assets consist of Long term Trade Company has initiated the Receivables of Rs. 2169.80 lacs. We are unable to ascertain appropriate proceedings to whether such balances as at balance sheet date are fully recover the said dues and the recoverable. Accordingly, we are unable to ascertain the impact, same are pending. However, the if any, that may arise in case any of these receivables are management is also considering subsequently determined to be doubtful for recovery. Had the the provisioning of the debtors Company provided provision for the same, the loss for the period as and when it is deemed would have been higher by Rs. 2169.80 lacs necessary.

3. Financial Year of the Company

In order to align with the provisions of the Companies Act, 2013, the Financial year of the Company has been changed as 1st April to 31st March. The Company has declared the Financial results for the 15 months period from 1st July 2013 to 30th September, 2014. Hence, the financials for the FY 2014-15 are declared for 6 months period from 1st October, 2014 to 31st March, 2015.

4. Dividend:

On account of losses during the period, no dividend is proposed to be declared for the financial period 1st October, 2014 to 31st March, 2015.

5. Changes in the Share Capital.

During the period under review, the Authorized share Capital of the Company has been increased from Rs. 10 Crores to Rs. 20 Crores.

6. Events subsequent to the financial results

Your company has allotted 23 lakh equity shares to M/s Ipca Laboratories Limited and 6 lakh equity shares to M/s Pinky Ventures Private Limited on preferential basis subsequent to the date of the financial results. As a result the paid up share capital of the Company is Rs. 12,41,42,860/- comprising of 1,24,14,286 equity shares.

7. Ipca Laboratories Limited

During the period under review, Ipca Laboratories Limited has acquired joint management stake in the Company and also made a public announcement of open offer to the public shareholders of the Company under SEBI(Substantial Acquisition of Shares and Takeover) Regulations, 2011.

8. Statutory Auditors

The shareholders in their meeting held on 31st December, 2014 approved the appointment of M/s Pavuluri & Co., Chartered Accountants, Hyderabad as the Statutory Auditors of the Company to hold office till the conclusion of the 27th Annual General Meeting subject to ratification of shareholders in every Annual General Meeting. Accordingly, a resolution seeking members' ratification on appointment of M/s Pavuluri & Co., Chartered Accountants, Hyderabad as the Statutory Auditors of the Company for the financial year 2015-16 is included at Item No.3 of the notice convening the Annual General Meeting.

9. Internal Auditors

The Board of Directors based on the recommendation of Audit Committee has appointed M/s Palesetti & Co, Chartered Accountants, Hyderabad, as Internal Auditors of the Company for the Financial Year 2015-16.

10. Appointment of Key Managerial Personnel

The Board of Directors at their meeting held on 13th August, 2015 has appointed Mr. Avinash Ravi as Managing Director of the Company w.e.f. 13th August, 2015 for a period of three (3) years up to 12th August, 2018. A resolution seeking the consent of the members for the appointment and remuneration of Mr. Avinash Ravi as Managing Director is included in Item No.5 to the notice convening the Annual General Meeting.

The Board of Directors at their meeting held on 13th August, 2015 also appointed Ms. Haritha Varanasi (ICSI Membership No. A34293) as the Company Secretary of the Company and Mr. CVRSN Kumar as the Chief Financial Officer of the Company w.e.f 13th August, 2015.

11. Secretarial Audit

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed M/s DSMR and Associates, Practicing Company Secretaries, as Secretarial Auditors to undertake the secretarial audit of the Company. The Secretarial Audit Report is annexed herewith as Annexure-I to the Board's Report. There are qualifications during the period ended 31st March, 2015.

Since the Company was non operational during the period, the Company was not in a position to appoint the CS, CFO and Internal Auditors and the non-executive directors in the Board.

However, subsequently the Company has appointed them at the Board Meeting held on 13th August, 2015 and is in compliance with the constitution of Board with required Executive, Non-Executive and Independent Directors.

12. Corporate Social Responsibility:

Your Company doesn't fall under the category of companies to which the Corporate Social Responsibility is applicable.

13. Risk Management :

During the period under review, your Company doesn't fall under the category of companies to which the Risk Management Committee is mandatory as per clause 49 of the Listing Agreement.

14. Directors:

The Board of Directors has appointed Mr. Satish Khivsara, as an Additional Director of the Company at their meeting held on 13th August, 2015, who holds office till the ensuing Annual General Meeting. The Board, based on the recommendation of the Nomination & Remuneration Committee considered the appointment of Mr. Satish Khivsara as an Independent Director subject to approval of the shareholders. Accordingly, a resolution seeking approval of the members for his appointment as an Independent Director for a period of 5 years is included in Item No. 4 of the Notice convening the Annual General Meeting.

During the period under review, the Board of Directors has appointed Mrs. Tangirala Malati as an Independent Director on 13th February, 2015. The members have approved the appointment of Mrs. Tangirala Malati at the Extra-Ordinary General Meeting held on 11th March, 2015.

During the period under review, Mr. R. Ch. Satyanarayana has resigned from the office of the Director w.e.f. 13th December, 2014.

Mr. Avinash Ravi is being appointed as the Managing Director of the Company. The Board of Directors at their meeting held on 13th August, 2015 has approved the appointment of Mr. Avinash Ravi as approved and recommended by the Nomination and Remuneration Committee. The approval of the members is sought for the said appointment of Mr. Avinash Ravi as Managing Director of the Company as Resolution Item No. 5 in the Notice to the 23rd Annual General Meeting.

Every Independent Director, at the first meeting of the Board of Directors in which he participates as a Director and thereafter at the First Meeting of the Board in every financial year, gives a declaration that he meets the criteria of independence as provided under the Companies Act, 2013.

A brief profile of the Directors of the Company is annexed herewith as Annexure- II to this report.

15. Board Meetings and Committees thereof:

The Board of Directors duly met Four (4) times on 28.11.2014, 13.12.2014, 13.02.2015 and 31.03.2015 in respect of which meetings, proper notices were given and the proceedings were properly recorded and signed in the Minutes Book maintained for the purpose.

The details of the Committees and their constitution and meetings held is provided in the Corporate Governance Report.

16. Fixed Deposits

Your Company has not accepted any fixed deposits and as such no principal or interest was outstanding as on the date of the Balance Sheet.

17. Directors' Responsibility Statement

Pursuant to Section 134(5) of the Companies Act, 2013, to the best of their Knowledge and belief and according to the information and explanation obtained, your Directors confirm:

i. That in the preparation of the financial statements for the period under review, the applicable accounting standards have been followed along with proper explanation relating to material departures.

ii. That the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give true and fair view of the Company at the end of the period ended 31st March, 2015 and of the profit and/or loss of the Company for the period.

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

iv. The accounts are prepared on a going concern basis. The properties and assets of the Company are adequately covered by insurance policies.

v. that your Directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are adequate and were operating effectively; and

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

18. Vigil Mechanism/Whistle Blower Policy:

The Company has a Whistle Blower Policy framed to deal with instance of fraud and mismanagement if any in the Company. The details of the policy are explained in the Corporate Governance Report and also posted on the website of the Company www.krebsbiochem.com.

19. Code of Conduct

The Board has laid down a code of conduct for board members and senior management personnel of the Company. The Code sets the duties of Independent Directors as prescribed under the Companies Act, 2013. The Board of Directors and senior management personnel of the company adhere to the code of conduct . A declaration pertaining to the compliance of code of conduct signed by the Managing Director forms part of the Corporate Governance Report.

20. Prevention of Insider Trading.

The Company has adopted code of conduct for prevention of Insider Trading and code of fair disclosure of unpublished price sensitive information as per the SEBI(Prohibition of Insider Trading) Regulations, 2015. All the Directors, Senior Management employees and other employees who are having access to the unpublished price sensitive information are governed by the code of conduct.

21. Related Party Transactions:

There are no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large.

As a part of the Related Party Transactions Policy, all related party transactions will be placed before the Audit Committee and also the Board for approval. The Company has developed a Policy on Related Party Transactions for the purpose of identification and monitoring of such transactions.

The Policy on Related Party Transactions as approved by the Board is uploaded on the website of the Company www.krebsbiochem.com.

The particulars of contracts or arrangements with related parties referred to in sub-section (1) of Section 188 of the Companies Act, 2013 in Form AOC-2 is herewith annexed as Annexure-III to this report.

22. Extract of Annual Return:

The details forming part of the extract of the Annual Return in Form MGT-9 is annexed herewith as Annexure-IV to this report.

23. Management Discussion & Analysis:

Pursuant to the provisions of Clause 49 of the Listing Agreement, a report on Management Discussion & Analysis is herewith annexed as "Annexure V" to this report.

24. Particulars of Employees:

As required under the provisions of Section 197 read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, no employee of the Company is drawing salary of more than 60 lakhs per financial year or 5 lakhs per month, as the case may be for the period ended 31st March, 2015.

25. Corporate Governance:

The Company has been making every endeavor to bring more transparency in the conduct of the business. As per the requirements of Listing Agreement with the Stock Exchanges, a compliance report on Corporate Governance for the period 2014-15 and a Certificate from the Auditors of the Company are furnished and forms part of this report.

26. Human Resources:

Your Company takes utmost care to attract and retain efficient employees. The employees are sufficiently empowered and such work environment propels them to achieve higher levels of performance. The unflinching commitment of the employees and the management is the driving force behind the Company's vision. The employees have resumed their duties after the lay off and strike. The company has paid bonuses for the employees who have joined back their duties. Your Company appreciates the spirit of its dedicated employees.

27. Energy Conversation, technology absorption and foreign exchange earnings outgo.

The information on conservation of energy, technology absorption and foreign exchange earnings and outgo as stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014 is annexed herewith as "Annexure-VI" to this report.

28. Acknowledgments:

Your Directors take this opportunity to express their sincere appreciation to the shareholders, customers, bankers, suppliers and other business associates for the excellent support and co-operation extended by them.

Your Directors gratefully acknowledge the on-going co-operation and support provided by the Central and State Governments, Stock Exchanges and SEBI and other Regulatory Bodies.

For and on behalf of the Board

Krebs Biochemicals & Industries Limited

Sd/-

Avinash Ravi

Managing Director (DIN-01616152)

Place : Hyderabad Date : 13.08.2015


Sep 30, 2014

Dear Members,

The Directors have pleasure in presenting the 22ndAnnual Report together with the Audited Accounts of your company for the period July 1,2013 to September 30, 2014.

Financial Results Rs. in lacs

Particulars 01.07.13 - 01.04.12 30.09.14 -30.06.13 Net Sales NIL 1,144.90

Other Income 2.13 614.17

Total Income 2.13 1,759.07

Expenditure 400.47 2,462.80

PBDIT (398.34) (703.73)

Loss on Sale of Assets 3.41 NIL

PBDIT (after Extra (401.75) (703.73) Ordinary Items)

Finance Charges 8.41 62.92

Depreciation NIL 827.64

Profit / (Loss) before (410.16) (1,594.29) Tax

Exceptional Items 15.55 -

Deferred Tax Asset (39.99) 74.02

Taxes of earlier years NIL NIL

Net Profit / (Loss) after (434.60) (1,520.27) Tax

Prior period adjustments NIL NIL

Profit after prior period (434.60) (1,520.27) adjustments

Add : Balance brought forward (4,196.19) (2,675.91)

Less : Transferred to General NIL NIL Reserve Balance Carried to balance sheet (4,630.79) (4,196.18)

Overall Performance:

The total income of the company during the fifteen months period from July 1, 2013 to September 30, 2014 is Rs.2.13 lacs with no sales income compared to the previous accounting period year amounting to Rs. 1,759.07 lacs. There is a net loss of Rs.434.60 lacs for the current accounting period July 1, 2013 to September 30, 2014 as against a net loss of Rs.1,520.27 lacs for the accounting period 2012-13. The steep drop in income is attributed to the continuing closure of both the plants on account of lock out in Unit I and lay off in Unit II.

The company is undertaking a financial restructuring to revive the operations. The secured Debt of IDBI and Exim Bank were taken over by Edelweiss Asset Reconstruction Company and entered in to a Settlement agreement for the debt of Exim Bank and negotiating for settlement agreement for the debt of IDBI Bank. The secured debt of Syndicate Bank, Andhra Bank and J & K Bank have been assigned to Pinky Ventrures Pvt. Ltd. Pinky Ventures Pvt. Ltd are negotiating for assignment of debt of United Bank of India in their favour.

Dividend :

No Dividend is proposed to be declared for the financial period July 1, 2013 to September 30, 2014. Taxation :

No Income Tax is applicable for the financial period under review. Deferred Tax Liability of Rs.39.99 lacs are adjusted in the current Financial period.

Equity Capital :

The equity capital remains unchanged during the period July 1, 2013 to September 30, 2014.

Board of Directors :

Mr. Avinash Ravi, Director retires by rotation at the ensuing Annual General Meeting and being eligible, offers himself for reappointment.

Sri China Satyanarayna Ravi was appointed as an Additional Director of the Company with effect from 13th August, 2014. The Company has received notice from a member proposing to appoint Sri China Satyanarayana Ravi as Director of the Company.

Sri G. V. L. Prasad was appointed as an Independent Director under the erstwhile Companies Act, 1956 as Director of the Company liable to retire by rotation. Consequent to enactment of Companies Act, 2013 (effective from 1st April, 2014) and subsequent circulars and notifications issued by the Ministry of Corporate Affairs the aforesaid Director is being appointed as Director not liable to retire by rotation and to hold office for a period of 5 years upto 31st December, 2019.

The Board of Directors in their meeting held on 28.11.2014 decided to re appoint Mr. Avinash Ravi as the Whole Time Director of the Company with effect from 1st February, 2015 on the terms and conditions mentioned in the resolution set out in the Notice.

Further it is informed to the Members that Mr. P.Nagaraju, IDBI nominated Director, Ms. Dayachandrahas, EXIM Bank nominated Director and Mr. K.Rajendra Prasad, APIDC nominated Director have resigned from the Board. Accordingly, your Board of Directors extend their sincere regards for the contribution of Mr. P.Nagaraju, Ms. Dayachandrahas and Mr. K.Rajendra Prasad during their tenure as Nominee Directors and wished them the best in their future endeavour.

Directors Responsibility Statement :

Your Directors confirm in terms of Sec 217(2AA) of the Companies Act, 1956 on the basis of the documents and information available to them that:

a) There has been no material departure from accepted accounting standards in the preparation of financial statements presented to you.

b) The Directors have chosen only accepted accounting policies and have applied them consistently. The judgements and estimates made by them are prudent and reasonable to give a true and fair view of the state of affairs of the company as on 30th September, 2014 and of the results of operations for the financial year.

c) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the requirements of the Companies Act, 1956 and to safeguard the assets of the company and to prevent and detect any irregularities and frauds.

d) The accounts presented are prepared on a going concern basis. The properties and assets of your company are adequately covered by insurance policies.

Auditors :

M/s. Pavuluri & Co., the Statutory Auditors of the company hold office until the conclusion of the 22nd Annual General Meeting. The said Auditors have furnished the Certificate of their eligibility for the appointment and intimated their consent and willingness for re-appointment. Pursuant to the provisions of Section 139 of the Companies Act'' 2013 and the Rules framed there under. It is proposed to appoint M/ s. Pavuluri & Co., as Statutory Auditors of the company from the conclusion of the 22nd Annual General Meeting till the Conclusion of 27th Annual General Meeting to be held in the year 2019, Subject to ratification of the Statutory Auditor''s appointment at the subsequent Annual General Meetings.

Directors Comments on Auditors Report :

Sl. Basis for Qualified Opinion Explanation by the Board

No.

1. Reference is invited to Note 15 of the financial Due to the prevailing recessionary trend in the industry statements; the Company''s Non Current Assets in the last 5 to 6 years, coupled with stoppage of consist of Long Term Trade Receivables of Rs. operations and unable to supply the materials 2,159.65 lacs. We are unable to ascertain whether continuously significant portion of trade receivables such balances as at balance sheet date are fully remain uncollected. The management is of the opinion recoverable. Accordingly, we are unable to ascertain that no provision is necessary during the year against the impact, if any, that may arise in case any of these the above amount as the company is pursuing the matter. receivables are subsequently determined to be The management is putting efforts in collecting such doubtful of recovery. Had the Company provided overdue trade receivables over a period of time and provision for the same, the loss for the period would hence no provision has been made. have been higher by Rs. 2,159.65 lacs.

2. Reference is invited to Note 11 of the financial Since the Term Loans are being taken over and assigned statements; the company has not provided the interest to Non banking Finance Companies, and being entered on Term Loans and Working Capital Loans for the in to settlement agreements with these companies, the current accounting period. Accordingly, the loss for company has not provided the interest on term loans the period would have been higher by Rs. 650.86 lacs. and working capital loans w.e.f. July 1,2013.

3. The company has not provided the depreciation for Due to stoppage of operations of both the plants during the accounting period from 1st July, 2013 to 30th the current accounting period on account of the September, 2014 since the assets are not put to use employees at Unit II have been laid off as per law and due to the closure of Nellore plant on account of Unit I was locked out due to illegal striking by employees, lockout due to labour strike and Vizag plant on account the depreciation on the assets of Unit II and unit I was of Lay Off. Had the company provided provision for not provided as these assets were not put to use.

the same, the loss for the period would have been higher by Rs.1,184.38 lacs.

Management Discussion and Analysis:

A report on the Management Discussion and Analysis is provided as part of this Annual Report. Corporate Governance and Shareholders'' information:

A report on Corporate Governance is provided as part of this Annual Report.

Conservation of Energy, Technology Absorption and Foreign Exchange:

Particulars required under Section 217(1) (e) of the Companies Act, 1956 read with rule 2 of the Companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988 is given in Annexure I attached and forms part of this Report.

Employee Relations:

Due to the unfortunate situation where the products manufacturing could not happen due to the power shortage the employees at Unit II had been laid off as per law. Despite their huge contribution to the company the company was left with no choice but to take the above action. Also Unit I where the employees were illegally striking was locked out and all contract manufacturing activity also stopped from August 2013. Once the financial restructuring is undertaken, efforts will be made to resolve the issues with the employees and restart the operations.

Human Resources:

None of the persons employed during the financial year under review is required to be furnished under Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975.

Social Responsibility:

Due to complete stoppage of all operations at both the plants, the company''s on going programme. As a responsible partner of society your company continues to participate in of corporate social responsibility have to a stop. We hope to reengage and resume such efforts once the operations come back to normalcy. Acknowledgement:

We extend our appreciation and thanks to our customers, suppliers and investors for their support. We are also grateful for the continued cooperation extended by the Financial Institutions, Banks and Government Authorities to the company. The Board is most appreciative of the dedication and commitment extended by its employees at all levels and their contribution to the company despite the serious crisis faced by the company.

For and on behalf of the Board of M/s. Krebs Biochemicals and Industries Limited

Sd/- Place: Hyderabad (Dr. R.T.Ravi) Date: 28.11.2014 Chairman & Managing Director


Mar 31, 2010

The Directors have the pleasure in presenting the 18th Annual Report together with the Audited Accounts of your company for the year ended March 31, 2010.

Financial Results : Rs. in lacs

Particulars 2009-10 2008-09

Net Sales 4,623.38 5,119.78

Other Income 2.91 3.82

Total Income 4,626.29 5,123.60

Expenditure 4,208.28 4,391.45

PBDIT 418.01 732.15

Obsolete Stocks Written off NIL 3,532.09

Loss on Sale of Assets 207.94 NIL

PBDIT (after Extra Ordinary Items) 210.07 (2,799.94)

Finance Charges 690.23 599.81

Depreciation 987.88 954.10

Profit / (Loss) before Tax (1,468.04) (4,353.85)

Deferred Tax Asset 901.25 93.36

Fringe Benefit Tax NIL 2.31

Net Profit / (Loss) after Tax (566.79) (4,262.80)

Prior period adjustments 7.90 1.46

Profit after prior period adjustments (574.69) (4,264.26)

Add : Balance brought forward (7,259.18) (2,994.92)

Balance Carried to balance sheet (7,833.87) (7,259.18)

Overall Performance:

The Turnover of the company during the Financial year 2009-10 has come down by 9.70% compared to previous year. This reduction is mainly on account of the fact that there were no revenues from Unit I combined with reduction in sales of Lovastatin. The bottom line i.e. gross contribution remained constant owing to cost control measures implemented during the year.

Dividend :

No Dividend is proposed to be declared for the financial year 2009-10.

Taxation:

No Income Tax is applicable for the financial year under review. There is no provision for Fringe Benefit Tax as it has since been withdrawn.

Equity Capital:

The equity capital remains unchanged during the Financial Year 2009-10.

Board of Directors:

Dr T Kuchroo Independent Director and Mr Avinash Ravi Whole time Directors retire by rotation at the ensuing Annual General Meeting and being eligible, offer themselves for reappointment.

Mr. K.S.S. Prasad, Nominee Director, Small Shareholders submitted his resignation as Director due to his personal reasons. The Board accepted the resignation after acknowledging and thanking him for his valuable contribution to the working of the Board and the Company.

Directors Responsibility Statement:

Your Directors confirm in terms of Sec 217(2AA) of the Companies Act, 1956 on the basis of the documents and information available to them that:

a) There has been no material departure from accepted accounting standards in the preparation of financial statements presented to you.

b) The Directors have chosen only accepted accounting policies and have applied them consistently. The judgements and estimates made by them are prudent and reasonable to give a true and fair view of the state of affairs of the company as on 31st March, 2010 and of the results of operations for the financial year.

c) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the requirements of the Companies Act, 1956 and to safeguard the assets of the company and to prevent and detect any irregularities and frauds.

d) The accounts presented are prepared on a going concern basis. The properties and assets of your company are adequately covered by insurance policies.

Auditors:

M/s Pavuluri & Co, Chartered Accountants are the Statutory Auditors of the company and they retire at this Annual General Meeting and being eligible offer themselves for reappointment.

Management Discussion and Analysis :

A report on the Management Discussion and Analysis is provided as part of this Annual Report.

Corporate Governance and Shareholders information:

A report on Corporate Governance is provided as part of this Annual Report.

Conservation of Energy, Technology Absorption and Foreign Exchange:

Particulars required under Section 217(1 )(e) of the Companies Act, 1956 read with rule 2 of the Companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988 is given in Annexure I attached and forms part of this Report.

Employee Relations:

The Directors are happy to report that the company has cordial relations with its employees. In spite of many difficulties, the employees have been cooperating with the management and enthusiastically offering their services as required by the management. Your Directors extend thanks to all of them.

Human Resources:

None of the persons employed during the financial year under review is required to be furnished under Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees ) Rules, 1975.

Social Responsibility:

As a responsible partner of society your company continues to participate in social welfare activities in the villages with in the vicinity of its operating units. Primary Education, local health and eradication of Child Labour are the key areas that we support in this ongoing effort.

Acknowledgement:

We extend our appreciation and thanks to our customers, suppliers and investors for their support. We are also grateful for the continued cooperation extended by the Financial Institutions, Banks and Government Authorities.The Board is most appreciative of the dedication and commitment extended by its employees at all levels and their contribution to the company.

For and on behalf of the Board of Directors

Sd/-

Place : Hyderabad (Dr. R.T.RAVI)

Date : 21.07.2010 Chairman & Managing Director





 
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