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Directors Report of Mauria Udyog Ltd.

Mar 31, 2014

DEAR MEMBERS,

The Directors have the pleasure in presenting the 34th Annual Report together with the Audited Accounts of the company for the year ended 31st March, 2014.

FINANCIAL RESULTS

The Financial Results for the year ended 31st March, 2014 are as under:

Rs. in Lacs

2013-14 2012-13

Gross Sales and Other Income 76975.65 90207.35

Gross Profit before Depreciation 1890.11 2175.61

Less : Depreciation 447.15 394.24

Profit before Tax 1442.96 1781.38

Loss due to Fire 40.90 56.14 (Rs.758.19 Lacs - Rs.717.29 Lacs)

Provision for Tax 354.50 511.00

Profit after Tax 1047.56 1214.24

Adjustment for Deferred (91.04) (48.72) Tax Assets/(Liabilities)

Net Profit for the year 956.52 1165.52

DIVIDEND

In order to conserve the financial resources of the company, the Board of Directors have not recommended payment of dividend to the equity shareholders of the company for the financial year 2013-14 closed on 31st March, 2014.

FIXED DEPOSITS

The company has not accepted any deposits from public during the financial year under report and as such there were no fixed deposits outstanding as on 31st March,2014.

CORPORATE GOVERNANCE

A detailed Report on Corporate Governance is given in "Annexure-A" to this report. The Auditors' Certificate relating to compliance of the conditions of Corporate Governance, as stipulated in clause 49 of the listing agreement with the Calcutta Stock Exchange where the shares of the company are listed is also enclosed.

DIRECTORS

In pursuance of Article 134 of the Articles of Association of the Company, Shri N.K. Sureka retires by rotation and, being eligible, offers himself for re-appointment.

Pursuant to the provisions of Section 161(1) of the Companies Act, 2013 and the Articles of Association of the Company, Shri Shiv Kumar Yadav and Shri Salil Rai were appointed as Additional directors w.e.f. 13th June, 2014 and Smt. Sujata Kumar w.e.f. 12th August, 2014 designated as Independent Directors and they shall hold office upto the date of the ensuing Annual General Meeting.

Shri Vijay Kumar Gupta, was appointed as an independent director w.e.f. 11/09/2008 pursuant to the provisions of Clause 49 of the Listing Agreement. In the opinion of the Board, Shri Vijay Kumar Gupta, being independent of management, fulfills the conditions for his appointment as an Independent Director as specified in the Companies Act, 2013 and the Listing Agreement vide SEBI's CIR/CFD/POLICY CELL/2/2014 dt. April, 17, 2014. SEBI vide Clause II B 3 of the said circular has stipulated that a person who has already served as an independent director for five years or more in a company as on October 1, 2014 shall be eligible for appointment, on completion of his present term, for one more term of five consecutive years only on passing of a Special Resolution by the Company.

The Company has received declarations from all the Independent Directors of the Company confirming that they meet with the criteria of Independence as prescribed both under sub-section (6) of Section 149 of the Act and under Clause 49 of the Listing Agreement with the Stock Exchange.

The Company has also received declarations from all the Independent Directors confirming that they are not disqualified from being appointed as a Director in terms of Section 164 of the Act and Rules made thereunder and have given their consent to act as a Director.

Pursuant to Section 149 and other applicable provisions of the Companies Act, 2013 and Rules made thereunder your Directors recommend appointment of S/Shri Vijay Kumar Gupta, Shiv Kumar Yadav , Salil Rai and Smt.Sujata Kumar as Independent Directors for the terms given in the Notice of the 34th Annual General Meeting.

After the conclusion of the 33rd annual general meeting of the company S/Shri Mohan Lai and O.P. Bhardwaj resigned from the Directorship of the company and your directors do put on record their appreciation for the valuable services rendered by S/Shri Mohan Lai and O.P. Bhardwaj during their tenure as directors of the company.

DIRECTORS' RESPONSIBILITY STATEMENT

As required under Section 217(2AA) of the Companies Act, 1956 (here-in-after known the "Act"), it is hereby affirmed that :-

a) in the preparation of annual accounts, the applicable accounting standards have been followed;

b) the Directors have selected such accounting policies and applied them consistently and made judgements 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 the end of the financial year under report and of the profit and loss of the Company for that period;

c) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and

d) the Directors have prepared the annual accounts on a going concern basis.

COMMITTEES OF BOARD OF DIRECTORS.

CORPORATE SOCIAL RESPONSIBILITY AND GOVERNANCE COMMITTEE

Your directors have constituted the Corporate Social Responsibility (CSR) Committee comprising of Shri Vishnu Kumar Sureka as Chairman, and Shri Navneet Kumar Sureka and Shri Vijay Kumar Gupta as other members.

The said committee has been entrusted with the responsibility of formulating and recommending to the Board, a Corporate Social Responsibility Policy (CSR Policy) indicating the activities to be undertaken by the Company, monitoring and implementing of the CSR Policy and recommending the amount to be spent on the CSR activities.

NOMINATION AND REMUNERATION COMMITTEE.

Your directors have constituted the Nomination And Remuneration Committee comprising of Shri Vijay Kumar Gupta as Chairman, and Shri Shiv Kumar Yadav and Shri Salil Rai as members.

The said committee has been entrusted with the responsibility of formulating and recommending to the Board a policy relating to the remuneration of the directors, key managerial personnel and other employees; formulation of criteria for evaluation of Independent Directors and the Board, devising a policy on Board diversity and identifying persons who are qualified to become directors and who may be appointed in senior management in accordance with the criteria laid down and to recommend to the board their appointment and removal.

STAKEHOLDERS' RELATIONSHIP COMMITTEE

Your directors have re-constituted the existing Shareholders' Grievance Committee by broadening the scope to include all security holders and their grievance- redressal as part of the new mandatory Committee to be called Stakeholders' Relationship Committee comprising of Shri Shiv Kumar Yadav as Chairman, Shri Vijay Kumar Gupta and Shri Salil Rai as members. The Stakeholders' Relationship Committee shall consider and resolve the grievances of security holders of the company.

RISK MANAGEMENT COMMITTEE

Your directors have constituted the Risk Management Committee comprising of Shri Navneet Kumar Sureka as Chairman, and Shri K.M. Pai and Smt. Sujata Kumar as members.

The purpose of the committee is to assist the Board in fulfilling its corporate governance duties by overseeing the responsibilities with regard to the identification, evaluation and mitigation of operational, strategic and environmental risks. The committee has the overall responsibility of monitoring and approving the risk policies of the Company. The risk management committee is also responsible for reviewing and approving risk disclosure statements in any public document or disclosures.

VIGIL MECHANISM / WHISTLE BLOWER POLICY

Your directors have established a Vigil (Whistle Blower) Mechanism and formulated a Policy in order to provide a framework for responsible and secure whistle blowing/vigil mechanism. The Vigil (Whistle Blower) Mechanism aims to provide a channel to the Directors and employees to report genuine concerns about unethical behavior, actual or suspected fraud or violation of the codes of conduct or ethic policy. This mechanism also provides for adequate safeguards against victimization of Directors and employees who avail of the mechanism and also provide for direct access to the Chairman of the Audit Committee in exceptional cases.

PREVENTION OF SEXUAL HARASSMENT POLICY

The Company is committed to provide a protective environment at workplace for all its women employees. To ensure that every woman employee is treated with dignity and respect and as mandated under "The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013" the Company has in place a formal policy for prevention of sexual harassment of its women employees.

AUDITORS

M/s. Salarpuria & Partners, Chartered Accountants, who are the statutory auditors of the Company, hold office until the conclusion of the ensuing 34th Annual General Meeting and are eligible for appointment. Pursuant to the provisions of Section 139 of the Companies Act, 2013 and rules framed thereunder, it is proposed to appoint M/s Salarpuria & Partners, Chartered Accountants as statutory auditors of the Company from the conclusion of the ensuing Annual General Meeting till the conclusion of the 37th Annual General Meeting to be held in the year 2017, subject to ratification by members of their appointment at every AGM.

Auditors' observations are explained in various notes on the Accounts and therefore do not call for any further comments.

COST AUDITORS

The Company has appointed M/s Jaiprakash & Co. , Cost Accountants for conducting the audit of cost records of the Company relating to LPG Cylinders, Regulators, Valves & Terry Towels for the financial year 2013-14.

FOREIGN EXCHANGE EARNINGS AND OUT GO

Rs.in Lacs

2013-14 2012-13

a) Earning in Foreign Exchange 15304.73 27528.27 F.O.B. Value of Exports

b) C.I.F Value of Imports:

Materials 887.15 3588.09 Spare Parts 221.28 339.52 Capital Goods 329.08 343.21

c) Expenditure in Foreign Currency :

For Travelling 13.87 9.23 For Commission 1421.11 2456.58 Others 653.51 834.94

MISCELLANEOUS

A Search and seizure operation of the Income Tax Department was conducted from 07th to 09th August, 2013 as referred to in note no. 3 of the Other notes on financial statements.

CONSERVATION OF ENERGY

As the products manufactured by the Company do not fall in the list of industries announced by the Government of India, the information required to be furnished in the prescribed Form 'A' is not required to be given and as such the same is not furnished herewith.

TECHNOLOGY ABSORPTION RESEARCH & DEVELOPMENT

Particulars of Technology Absorption

Research and Development in Form 'B' Nil

EMPLOYEES

As there have been no employees during the year under review who were paid remuneration of Rs. 60.00 Lakh per annum or more, if employed through out the year or Rs. 5.00 Lakh per month and more, if employed for the part of the year, the information as required Under Section 217 (2A) of the Companies Act 1956 is thus not called for.

ACKNOWLEDGEMENT

Your Directors wish to express their gratitude to the Banks, Employees as well as Customers for their timely help in smooth functioning of your Company. Your Directors also extend their thanks to all the Shareholders of the Company for their trust and confidence in the Board of Directors of the Company.

By order of the Board of Directors MAURIA UDYOG LIMITED

V.K. SUREKA CHAIRMAN

ROOM NO. 107, 1st FLOOR, ANAND JYOTI BUILDING, 41, NETAJI SUBHAS ROAD, KOLKATA - 700 001 CIN:L51909WB1980PLC033010 Date :29th August, 2014




Mar 31, 2013

Dear MEMBERS

The Directors have the pleasure in presenting the 33rd Annual Report together with the Audited Accounts of the company for the year ended 31st March, 2013.

FINANCIAL RESULTS

The Financial Results for the year ended 31st March, 2013 are as under

Rs. in Lacs

2012- 13 2011- 12

Gross Sales and Other Income 90207,35 89711.88

Gross Profit before Depreciation 2175.62 1748.91

Less : Depreciation 394.24 338.42

Profit before Tax 1781.38 1410.49

Loss due to Fire (Rs.758.19 Lacs - 56.14 - Rs.702.05 Lacs)

Provision for Tax 511.00 424.41

Profit after Tax 1214.24 986.08

Adjustment for Deferred Tax Assets/ (48.72) (46.91) (Liabilities)

Net Profit for the year 1165.52 939.17

DIVIDEND

In order to conserve the financial resources of the company, the Board of Directors have not recommended payment of dividend to the equity shareholders of the company for the financial year 2012-13 closed on 31March, 2013.

FIXED DEPOSITS

The company has not accepted any deposits from public during the financial year under report and as such there were no fixed deposits outstanding as on 31st March,2013,

CORPORATE GOVERNANCE

A detailed Report on Corporate Governance is given in "Annexure-A" to this report. The Auditors' Certificate relating to compliance of the conditions of Corporate Governance, as stipulated in clause 19 of the listing agreement with the Calcutta Stock Exchange where the shares of the company are listed is also enclosed.

DIRECTORS

In pursuance of Article 134 of the Articles of Association of the Company, Shri K. M. Pai retires by rotation and, being eligible, offers himself for re-appointment.

DIRECTORS' RESPONSIBILITY STATEMENT

As required under Section (2AA) of the Companies Act, 1956(here-in-after known the "Act"), it is hereby affirmed that -

a) in preparation of annual accounts, all applicable accounting standards have been followed.

b) the Directors had selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year under report and of the profit and loss of the Company for that period.

c) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and

d) the Directors have prepared the annual accounts on a going concern basis.

AUDITORS

M/s. Salarpuria & Partners, Chartered Accountants, who retire at the conclusion of this Annual General Meeting and, being eligible, offer themselves for re-appointment. Your Directors recommend that they may be re-appointed as Auditors of the Company for the Financial Year 2013- 14 on such remuneration as is fixed by the Shareholders.

Auditors" observations are explained in various notes on the Accounts and therefore do not call for any further comments.

FOREIGN EXCHANGE EARNINGS AND OUT GO Rs.in Lacs

2012 -13 2011-12

a)Earning in Foreign Exchange F.O.B. 27528.27 16533.69 Value of Exports b) C.I.F Value of Imports: Materials 3588.09 1703.44

Sparc Parts 339.52 0.05

Capital Goods 343.21 22.39

e) Expenditure in foreign Currency :

For Travelling 9.23 6.23

for Commission 2456.58 1570.70

For Testing fee - -

Others 834.94 553.21

CONSERVATION OF ENERGY

As the products manufactured by the Company do not fall in the list of industries announced by the Government of India, the information required to be furnished in the prescribed Form 'A' is not required to be given and as such the same is not furnished herewith.

TECHNOLOGY ABSORPTION RESEARCH & DEVELOPMENT

Particulars of Technology Absorption Research and Development in Form 'B' Nil

EMPLOYEES

As there have been no employees during, the year under review who were paid remuneration of Rs. 60.00 Lakh per annum or more, if employed through out the year or Rs. 5.00 Lakh per month and more, if employed for the part of the year, the information as required Under Section 217 (2A) of the Companies Act 1956 is thus not called for.

ACKNOWLEDGEMENT

Your Directors wish to express their gratitude to the Banks, Employees as well as Customers for their timely help in smooth functioning of your Company. Your Directors also extend their thanks to all the Shareholders of the Company for their trust and confidence in the Board of Directors of the Company.

By order of the Board of Directors MAURIA UDYOG Limited

V.K. SUREKA N.K.SUREKA CHAIRMAN MANAGING DIRECTOR

ROOM NO. 107, 1st FLOOR, ANAND JYOTI BUILDING. 41. NETAJ1 SUBHAS ROAD, KOLKATA 700 001

Date : 15th July. 2013


Mar 31, 2012

DEAR MEMBERS,

The Directors have the pleasure in presenting the 32nd Annual Report together with the Audited Accounts of the company for the year ended 31st March, 2012.

FINANCIAL RESULTS

The Financial Results for the year ended 31st March, 2012 are as under

Rs. in Lacs

2011-12 2010-11

Gross Sales and Other Income 89711.88 79317.06

Gross Profit before Depreciation 1748.91 1454.33

Less : Depreciation' 338.42 267.26

Profit before Tax 1410.49 1187.07

Provision for Tax 424,41 360.00

Profit after Tax 986.08 827.07

Adjustment for Deferred Tax Assets/ 46.91 38.29 (Liabilities)

Net Profit for the year 939.17 788.78

DIVIDEND

In order to conserve the financial resources of the company, the Board of directors have not recommended payment of dividend to the equity shareholders of the company for the financial year 2011-12 closed on 31st March,2012.

FIXED DEPOSITS

The company has not accepted any deposits from public during the financial year under report and as such there were no fixed deposits outstanding as on 31st March,2012.

CORPORATE GOVERNANCE

A detailed Report on Corporate Governance is given in "Annexure-A" to this report. The Auditors' Certificate relating to compliance of the conditions of Corporate Governance, as stipulated in clause 49 of the listing agreement with the Calcutta Stock Exchange where the shares of the company are listed is also enclosed.

DIRECTORS

In pursuance of Article 134 of the Articles of Association of the Company, Shri Vijay Kumar Guptal retires by rotation and, being eligible, offers himself for re-appointment.

After the conclusion of 31 Annual General Meeting, Sh. Hemant Venkataramani Lalithraj resigned from the directorship of the company and the Board of Directors do place on record their appreciation for the valuable services rendered by Sh. Hemant Venkataramani Lalithraj during his tenure as a director of the company. Sh. O.P. Bhardwaj was appointed as an Additional Director who would act as Additional Director till the ensuing Annual General Meeting wherein a resolution for his appointment as a director would be placed for which a notice from a shareholder has been received indicating his intention to place the aforesaid resolution.

DIRECTORS' RESPONSIBILITY STATEMENT

As required under Section 217(2AA) of the Companies Act, 1956(here-in-after known the ''Act"), it is hereby affirmed that

a) in preparation of annual accounts, all applicable accounting standards have been followed.

b) the Directors had selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year under report and of the profit and loss of the Company for that period.

c) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and

d) the Directors have prepared the annual accounts on a going concern basis.

MANAGEMENT DISCUSSION & ANALYSIS

OVERVIEW

MAURIA UDYOG LIMITED (MUL) is an ISO 9001:2008 company certified by BSI, accredited by UKAS. MUL is also certified for OHSAS:18001:2007 & ISO 14001:2004 by BSI for its Health Safety and Environmental Management Systems. We are a Govt, of India recognized TRADING HOUSE, for consistent export of our products to various parts of the world such as UK, France, Poland, Spain, Denmark, Portugal, Australia, Angola, Tanzania, UAE, Bangladesh, Kenya, Sri Lanka, Maldives, Madagascar, Iraq, South Africa, Afghanistan, Oman, Bahrain, Ghana, Malta, Mauritania, Tunisia, Senegal, Mauritius, Libya, Congo, Nigeria, Mali, Cote'd'lvoire, Zambia, Mozambique,Tchad, Cambodia, Guadeloupe, French Guyana, Martinique, Cameroon, Malawi, Benin, Togo, Sierra Leone, Cabo Verde, Netherland, South Korea, Nepal, etc. MUL exports its products to practically every continent of the world. The manufacturing Works is situated at Faridabad, on the outskirts of New Delhi in the NCR region.

EXPOSURE TO EXPORTS OF LPG CYLINDERS

WELDED STEEL LPG CYLINDERS

Over the past 29 years MUL has produced the cylinders as per different international standards such as EN 1442, ISO 4706, SANS 4706, DOT 4BA, KS ISO 4706, ISO 22991, IS 3196, OS 120, NIS 69, AS 2469, AS 2470, SNI 1452, SLS 1178 and EN 13322-1. Customers such as BP, SHELL, TOTAL, BOC/LINDE, VITOGAZ and ADDAX & ORYX GROUP etc. to name but a few have enjoyed our international quality at an affordable price. We have installed rigorous standards with modern equipment and a keen and well-trained workforce. We produce the cylinders from 4.0 litre ( 1.7 kgs. gas capacity) to 120.0 litre (50.0 kgs.) for LPG and other gases such as ammonia and refrigerants.

The company has made export sales during the financial year under report amounting to Rs. 167.04 Crores against the export of Rs.82.25 Crores during the previous year which depicts a growth of 80% in exports during the current year in comparison to that of the previous year.

MISSION

We are committed to satisfy our customers by providing Quality Product which gives highest value for money.

We believe that employees are our most important asset through which we can reach the top in each category of our products and services. Therefore, we will emphasize on their continuous improvement through upgradation of relevant knowledge and training.

We commit ourselves to continuous growth, so as to fulfil the aspirations of our customers, employees and shareholders.

COMMITTED TO QUALITY

We don't just manufacture products, we create satisfaction. Eurospa has deployed extensive resources to ensure the optimum quality of its products. The reiterative tests, the microscopic adherence to quality and inspection, all ensures that all Eurospa products are of world-class quality. We treat each and every product as a challenge, and every achievement a reason to set new goals.

MUL apart from manufacturing of LPG Cylinders,Valves, Regulators, Disposable Cylinders, Mathyl Bromide Cylinders & Refilable Cylinders, being its main activity, has also undertaken the following

I. TERRY TOWEL DIVISION

The company undertakes manufacturing of terry towels in addition to cylinders. MUL has a top of the line manufacturing facility to manufacture world-class terry towels as per the prevailing international standards.

Spread over. 30,000 sq.ft., this unit boasts of an in-house and completely integrated infrastructure alongwith a talented pool of professionals from the textile industry.

The unit comprises of a modem facility and a weaving plant equipped with all the relevant machines. The ultra-modren Terry Towel Manufacturing Unit has the state-of-the-art technology sourced from Switzerland, Germany and Italy.

As reported last year that the Terry Towel Division has upgraded its plant & machinery by making additional investment amounting to Rs.5.30 Crores so to have better quality and increased production of the products, your directors are pleased to inform that the total turnover of the Terry Towel Division during the year under report has been at Rs.13.36 Crores in comparison to Rs.5.05 Crores during the previous year, thus, making a growth of approximately 165% over that of the last year.

ZERO DEFECT PRODUCTION IN TERRY TOWEL

Automatic Fabric Inspection machine has been installed to ensure that only zero defect fabric goes for production. To lend smooth velvet finish to the products, specialized shearing machines have been imported. The end product is also inspected by the finishing team for even minor defects, if any. The objective is to ship only those products which reflect MUL's unflinching commitment to quality.

II. CONSIGNMENT AGENCY

As reported earlier, the company has completed its 5th year as a consignment agent of Rashtriya Ispat Nigam Limited, a Govt, of India Undertaking.

III. READYMADE GARMENTS

Mauria Merchandise has apparel retail of Levis Denizen previously known as Levis Signature through its show-rooms in NCR cities viz. Delhi, Gurgaon & Mumbai. Mauria Merchandise has also made arrangements with Reliance trends Limited to market the above mentioned brand through their show-rooms situated in a number of towns in the States of Andhra Pradesh, Chhatisgarh, Delhi, Gujarat, Haryana, Jharkhand, Kerala, Karnataka, Maharashtra, Madhya Pradesh, Punjab, Rajasthan, Tamil Nadu & Visakhapatanam.

Mauria Merchandise has also traded in readymade garments during the year under review and has sold 2,80,157 pcs. of garments which were bought from the manufacturers. The management is hopeful to have a substantial increase in the sale of readymade garments in the days to come.

IV. INTERNATIONAL TRADING & MERCHANDISING

The company has carried on with domestic trading in agro- commodities such as soyabean meal, DOC, rice & cattle feed and international & domestic trading in metals such as steel, brass, zinc, copper, ferrous and non-ferrous scrap besides sale of land which was in stock in trade in the last year. This has further improved the liquidity position of the company and the company is hopeful to do better in the near future.

V. LPG CYLINDER ACCESSORIES

The company also manufactures various other LPG Cylinder Accessories such as Cylinder Guards, Neck Rings, Burner Set, Cooker Ring & Adopter.

RECOGNITION & AWARDS

The company is the recipient of FIEO's Niryat Shree Bronze Trophy Award for its excellence in exports.

EEPC INDIA, Eastern Region awarded the company on 25.02.2011 Export Excellence for Star Performer as large enterprise in the product group of other fabricated metal products, exel machinery & equipment for its outstanding contribution to engineering exports during the year 2008- 09 and for the year 2009-10 as well which was received on 20.12.2011 by Shri N. K. Sureka, a director of the company.

The company was alsr represented in the Annual Premier Vendors' Workshop conducted by Bharat Petroleum Corporation Limited held at Mumbai on 04.11.2011 wherein a Trophy for the best performance was awarded to the company which was received by Shri K. M. Pai, a director of the company.

The Indian Council of Small & Medium Exporters (ICSME) has awarded Niryat Shiromani Puraskar to Shri N. K. Sureka, a director of the company and Gold Medal to the company for export performance on 23.03.2007.

The company participated in the ''Haryana State Safety and Welfare Awards Scheme" in the year 2006 and the Directorate of Industrial Safety & Health, Labour Department, Haryana placed on record its appreciation of the management for taking proactive steps by implementing safety, health and welfare schemes for the workers.

AUTOMATION

The company is continuously automizing and upgrading the manufacturing facility to meet the latest technological advancement.

RESEARCH & DEVELOPMENT (R&D)

MUL has its in-house R&D facility and a fully equipped design studio that creates innovative and vibrant designs for towels in line with prevailing international trends and forecasts. The studio is equipped with CAD system and is managed by well known and talented designers. It is also fully capable of designing towels as per the buyer's designs, material and colour specifications.

The management of the company also keeps a tab on the international trends by attending various international fairs & conferences.

The company's continued focus on R&D has resulted in several approvals of its products in developed markets and significant progress in its initiative.

MUL has a complete and integrated towel manufacturing facility which makes its products internationally compatible in terms of quality and price. It also helps to reduce production lead time to a considerable extent.

It is now all set to carve a niche for itself in the competitive international market by exporting world class products.

FORGING NEW RELATIONSHIPS

Having consolidated its infrastructure and strengths, the company is planning to expand and grow its overseas market in times to come. It plans to forge mutually rewarding business associations with its potential clients. For this purpose, it has chalked out an ambitious plan. The management of the company is committed to provide its clients reliable and quality products at competitive prices and thus nurture enduring relationships with them.

The change in the international/local Govt. Policies do have its significant impact on the business of the company in the international as well as local markets, thus, effecting the volume of sales including the exports of the company.

The management is pleased to inform the members that the company currently has an order book of INR 240.00 Crores in hand as at the beginning of the new financial year 2012-13. The company is likely to set a new benchmark in sales for its manufactured products.

RISK & CONCERNS

At MUL, all key functions and divisions are independently responsible to monitor risk associated within their respective areas of operations such as production, finance, insurance, shipping, legal and other issues like health, safety and environment.

Cylinders and terry towel products are globally traded commodities and their prices are subjected to international market forces of demand-supply and other factors that influence price volatility. With these two businesses presently accounting for the major proportion of MUL's revenues, changes in global price levels will have an impact on the company's performance.

As per global trend, all labour intensive manufacturing activities are being discontinued in the developed countries and are now shifting to developing countries wherein India is a preferred destination specially of products like Cylinders & Towels. The company is in an advantageous position as far as products manufactured are concerned.

AUDITORS

M/s. Salarpuria & Partners, Chartered Accountants, who retire at the conclusion of this Annual General Meeting and, being eligible, offer themselves for re-appointment. Your Directors recommend that they may be re-appointed as Auditors of the Company for the Financial Year 2012- 13 on such remuneration as is fixed by the Shareholders.

Auditors' observations are explained in various notes on the Accounts and therefore do not call for any further comments.

FOREIGN EXCHANGE EARNINGS AND OUT GO

Rs.in Lacs

2011-12 2010-11

a)Earning in Foreign Exchange F.O.B. 16533.69 7793.82 Value of Exports

b)C.I.F Value of Imports: Materials 1703.44 638.73

Spare Parts 0.05 3.99

Capital Goods 22.39 546.06

c) Expenditure in Foreign Currency:

For Travelling 6.23 9.00

For Commission 1570.70 743.36

For Testing/ Fee - 4.18

Others 553.21 101.29

CONSERVATION OF ENERGY

As the products manufactured by the Company do not fall in the list of industries announced by the Government of India, the information required to be furnished in the prescribed Form 'A' is not required to be given and as such the same is not furnished herewith.

TECHNOLOGY ABSORPTION RESEARCH & DEVELOPMENT

Particulars of Technology Absorption Research and Development in Form 'B' Nil

EMPLOYEES

As there have been no employees during the year under review who were paid remuneration of Rs. 60.00 Lakh per annum or more, if employed through out the year or Rs. 5.00 Lakh per month and more, if employed for the part of the year, the information as required Under Section 217 (2A) of the Companies Act 1956 is thus not called for.

ACKNOWLEDGEMENT

Your Directors wish to express their gratitude to the Banks, Employees as well as Customers for their timely help in smooth functioning of your Company. Your Directors also extend their thanks to all the Shareholders of the Company for their trust and confidence in the Board of Directors of the Company.

By order of the Board of Directors MAURIA UDYOG LIMITED

(V.K.SUREKA) ( N.K. SUREKA) CHAIRMAN MANAGING DIRECTOR

ROOM NO. 107, 1st FLOOR, ANAND JYOTI BUILDING, 41, NETAJI SUBHAS ROAD, KOLKATA-700 001

Date : 28th August, 2012

 
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