Home  »  Company  »  Mercury Metals Ltd.  »  Quotes  »  Directors Report
Enter the first few characters of Company and click 'Go'

Directors Report of Mercury Metals Ltd.

Mar 31, 2014

Dear Members,

The Directors have pleasure in presenting the 28th Annual Report together with the Audited Accounts of the Company for the year ended on 31st March, 2014.

FINANCIAL RESULTS:

The summarized financial results of the Company for the period ended 31st March, 2014. Are as follows:

(Amount in Rs.)

2013-14 2012-13

Total income (Net) 48,36,687 0

Total Expenditure 53,68,787 4,78,031

Profit before extraordinary items and tax (5,32,100) (4,78,031)

Extraordinary Items (2,06,33,396) 0

Less: Depreciation 0 0

Provision for taxation 0 0

Profits / (Loss) after Tax (2,11,65,497) (4,78,031)

DIVIDEND:

Your directors are unable to recommend any dividend in view of Net Loss during the financial year 2013-14.

OPERATIONS:

The Company has achieved sales turnover of Rs. 48.23 Lacs during the year compared to Rs. NIL during the previous year. The Company has incurred net loss of Rs. 211.65 Lacs compared to Rs. 4.78 Lacs in the previous year. Your directors are optimistic of achieving much better results in the next year.

INSURANCE:

The Company has taken sufficient insurance for the properties against risks of fire, strike, riot and earthquake.

DIRECTORS:

Mr. Bhupendrasingh N. Rajput, Director of the Company, retires by rotation and being eligible offers themselves for re- appointment.

The Board of your Company recommends his re-appointment as Director under the category of liable to retire by rotation.

PARTICULARS OF EMPLOYEES:

The particulars of the employee of the Company drawing total remuneration of Rs.60,00,000/- per annum or Rs.5,00,000/ - per month as required U/S 217 (2A) of the Companies Act, 1956 is Nil.

FIXED DEPOSITS:

Your Company has not accepted any deposits and, as such, no amount of principal or interest was outstanding on the date of balance sheet.

The Board of Directors states:

1) that in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

2) that the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;

3) that the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

4) that the Directors had prepared the annual accounts on a going concern basis.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:

1) CONSERVATION OF ENERGY :

A. Energy Conservation measures taken: The Company gives top most priority to energy conservation.

B. Additional investment and proposal if any being implemented for reduction in consumption of energy : NIL

C. Energy consumption in terms of electricity, LDO and Gas : NIL.

D. Total energy consumption and energy consumption per unit of production: NIL.

2) TECHNOLOGY ABSORPTION :

A. Adoption and innovation: N.A.

B. Research and development ( R & D ) : NIL

3) FOREIGN EXCHANGE EARNINGS AND OUT GO : NIL CORPORATE GOVERNANCE:

The Report on Corporate Governance required under Clause 49 of the Listing Agreements is annexed.

LISTING:

The Equity shares of the Company are listed on Ahmedabad and Bombay Stock Exchanges. The Company has paid Annual Listing Fees of Bombay Stock Exchange, up to the year 2013-14.

AUDITORS:

The present Auditors of the Company M/S. AMBALAL PATEL & CO., Chartered Accountants, Ahmedabad were appointed as Auditors and will retire at the ensuing Annual General Meeting. M/S. AMBALAL PATEL & CO., Chartered Accountants have submitted certificate for their eligibility for appointment under Section 139 of the Companies Act, 2013. Board of Directors of your Company favour their re-appointment as Auditors of the Company and such re-appointment if done, shall be upto the next Annual General Meeting of the Company.

AUDITORS REPORT AND COMMNETS:

1) Non Provision of Interest as stated in Note No. (19)

The Company has entered into One time Settlement (OTS) Scheme with Charottar Nagrik Sahkari Bank Ltd. for the payment of its outstanding liabilities, and during the financial year 2013-14, the Company failed to make payment as per the terms of the OTS. As per the terms of the OTS, if the Company fails to make payment of any installments of the OTS, the Company would be liable for the payment of interest @ 7% per annum on the said installment value alongwith penal interest @ 1% and same will be payable alongwith full and final settlement of outstanding. The Board of Directors of your Company are already pursuing to make full and final payment of OTS amount with the said bank, before the schedule period of payment of OTS. Therefore the board is confident that the said bank will not charge any type of interest and penal interest on delayed payments of any due installments. Therefore no provision of Rs.27.95 lacs has been made during the year by the Company.

Further, the Company has fully settled the outstanding OTS amount of Charottar Nagrik Sahkari Bank Ltd. on 31st July, 2014 and the Bank has not charged any interest and/or penal interest on those installments, which the Company failed to pay timely in terms of OTS Letter.

2) Diminution in value of Inventories held in shares as stated in Note no. (22)

The shares held as inventories are stated at the cost of acquisitions. No provision has been made for diminution in the value of shares held as inventories. The Board of the Company finds that such diminution in the value of shares is temporary, further market value of certain shares are not available due to non-listing and/or delisting/ suspension of trading of shares at the stock exchange, therefore no provisions has been made.

ACKNOWLEDGEMENT

Your Directors would like to express their appreciation for the support extended by Bankers and Office bearers of Government Department and Financial Institutions. Your Directors also acknowledge the continued invaluable support extended by you - our shareholders- and the confidence that you have placed in the company.

Regd. Office : On behalf of the Board 36, Advani Market For, Mercury Metals Ltd. O/S Delhi Gate, Ahmedabad-380004 Govindram L. Kabra Date : 12/08/2014 Executive Director Place : Ahmedabad DIN:00006621


Mar 31, 2013

Dear Members,

The Directors have pleasure in presenting the 27th Annual Report together with the Audited Accounts of the Company for the year ended on 31st March, 2013.

FINANCIAL RESULTS:

The summarized financial results of the Company for the period ended 31st March, 2013. Are as follows:

(Amount in Rs.) 2012-13 2011-12

Total income (Net) 0 1,60,36,675.09

Total Expenditure 478030.54 3,41,87,820.10

Gross Profit / (Loss) (478030.54) (1,81,511,45.01)

Less:

Depreciation 0 12,498.00

Provision for taxation 0 0

Profits / (Loss) after Tax (478030.54) (1,81,63,643.00)

DIVIDEND:

Your directors are unable to recommend any dividend in view of Net Loss during the financial year 2012-13.

OPERATIONS:

The Company has achieved sales turnover of Rs. NIL during the year compared to Rs. 100.971 Lacs during the previous year. The Company has incurred net loss of Rs. 4.78 Lacs compared to Rs. 181.64 Lacs in the previous year. Your directors are optimistic of achieving much better results in the next year.

INSURANCE:

The Company has taken sufficient insurance for the properties against risks of fire, strike, riot and earthquake.

DIRECTORS:

Mr. Ramprakash L. Kabra, Director of the Company, retires by rotation and being eligible offers himself for re-appointment.

The Board of your Company recommends his re-appointment as Director under the category of liable to retire by rotation.

PARTICULARS OF EMPLOYEES:

The particulars of the employee of the Company drawing total remuneration of Rs. 60,00,000/- per annum or Rs. 5,00,000/- per month as required U/S 217 (2A) of the Companies Act, 1956 is Nil.

FIXED DEPOSITS:

Your Company has not accepted any deposits and, as such, no amount of principal or interest was outstanding on the date of balance sheet.

DIRECTORS'' RESPONSIBILITY STATEMENT -SECTION 217 (2AA) OF THE COMPANIES ACT, 1956: The Board of Directors states:

1) that in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

2) that the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;

3) that the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

4) that the Directors had prepared the annual accounts on a going concern basis.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:

1) CONSERVATION OF ENERGY :

A. Energy Conservation measures taken: The Company gives top most priority to energy conservation.

B. Additional investment and proposal if any being implemented for reduction in consumption of energy : NIL

C. Energy consumption in terms of electricity, LDO and Gas NIL.

D. Total energy consumption and energy consumption per unit of production: NIL.

2) TECHNOLOGY ABSORPTION :

A. Adoption and innovation : N.A.

B. Research and development ( R & D ) : NIL

3) FOREIGN EXCHANGE EARNINGS AND OUT GO : NIL CORPORATE GOVERNANCE:

The Report on Corporate Governance required under Clause 49 of the Listing Agreements is annexed.

LISTING:

The Equity shares of the Company are listed on Ahmedabad and Bombay Stock Exchanges. The Company has paid Annual Listing Fees of Bombay Stock Exchange, up to the year 2013-14.

AUDITORS:

The present Auditors of the Company M/s. Badrilal Punglia & Co., Chartered Accountants'', Ahmedabad were appointed as Auditors and will retire at the ensuing Annual General Meeting. M/s. Badrilal Punglia & Co., Ahmedabad have informed the Company about their inability to continue as an Auditor of the Company and therefore the Company has approached M/s. Ambalal Patel & Co., Chartered Accountants, Ahmedabad to act as an Auditor of the Company. M/s. Ambalal Patel & Co., Chartered Accountants, Ahmedabad have submitted certificate for their eligibility for appointment under Section 224(1B) of the Companies Act, 1956. The Appointment of M/s. Ambalal Patel & Co., Chartered Accountants, Ahmedabad as Statutory Auditors of the Company will be effective from the conclusion of this Annual General Meeting to the conclusion of next Annual General Meeting. Your Directors recommend the appointment of M/s. Ambalal Patel & Co., Chartered Accountants, Ahmedabad Auditors of the Company. The notes and remarks of Auditors'' are self-explanatory.

AUDITORS REPORT AND COMMNETS:

1) Valuation of Investment at cost as stated in Note no. (7)

The Company has invested in the equity shares of Shree Metalloys Ltd. and the total cost of acquisition was Rs.29,98,750 for 303100 equity shares. The present Market Value of these shares is more than the acquisitions cost of the Company and there is no erosion of value of investment of the Company, therefore no provision is required and the said investment has been shown at its acquisition cost. Further the Company has invested in the shares of Charottar Nagrik Sahkari Bank Ltd. as it was compulsory for the borrower of the said bank to take shares of the said Bank. The shares of Charottar Nagrik Sahkari Bank Ltd. are not listed, therefore the current market value of these shares are not known and so the same has been shown at the acquisition cost.

2) Non Provision of Book Debts as stated in Note No. (8)

The Board has not provided for the doubtful debts of Rs.18605486.12/- as the Management of the Company thinks that the same are recoverable and also perusing the matter with the debtors of the Company to recover the outstanding. Once all efforts to recovers seems to be failed to management, the same will be provided in the Books of the Company.

3) Non Provision of Interest as stated in Note No. (18)

The Company has entered into One time Settlement (OTS) Scheme with Charottar Nagrik Sahkari Bank Ltd. for the payment of its outstanding liabilities, as the current financial position of the Company is not good, the Company failed to make payment as per the terms of the OTS during the year. As per the terms of the OTS, if the Company fails to make payment of any installments of the OTS, the Company would be liable for the payment of interest @ 7% per annum on the said installment value alongwith penal interest @ 1% and same will be payable on the full and final settlement of the outstanding, therefore no provision has been made during the year by the Company, the same will taken on the Books on its payment to the Bank.

ACKNOWLEDGEMENT

Your Directors would like to express their appreciation for the support extended by Bankers and Office bearers of Government Department and Financial Institutions. Your Directors also acknowledge the continued invaluable support extended by you - our shareholders- and the confidence that you have placed in the company.



For and On behalf of the Board

Date:13/08/2013 Govindram L. Kabra

Place : Ahmedabad Executive Director


Mar 31, 2012

The Directors have pleasure in presenting the 26th Annual Report together with the Audited Accounts of the Company for the year ended on 31st March, 2012.

FINANCIAL RESULTS:

The summarized financial results of the Company for the period ended 31st March, 2012. Are as follows:

(Amount in Rs.)

2011-12 2010-11

Total income (Net) 1,60,36,675.09 25,40,892

Total Expenditure 3,41,87,820.10 30,26,396

Gross Profit / (Loss) (1,81,51,145.01) (4,85,504)

Less : Depreciation 12,498 26,098

Provision for taxation 0 0

Profits / (Loss) after Tax (1,81,63,643) (5,11,602)

DIVIDEND:

Your directors are unable to recommend any dividend in view of Net Loss during the financial year 2011-12.

OPERATIONS:

The Company has achieved sales turnover of Rs. 100.971 Lacs during the year compared to Rs. 25.41 Lacs during the previous year. The Company has incurred net loss of Rs. 181.64 Lacs compared to Rs. 5.12 Lacs in the previous year. Your directors are optimistic of achieving much better results in the next year.

INSURANCE:

The Company has taken sufficient insurance for the properties against risks of fire, strike, riot and earthquake.

DIRECTORS:

Mr. Mahendra G Prajapati, Director of the Company, retires by rotation and being eligible offers themselves for re- appointment.

During the year Mr. Bhupendra Singh N Rajput was appointed as an Additional Director of the Company w.e.f. 14/02/ 2012. Due notice under section 257 of the Companies Act, 1956, has been received along with requisite fee from a member proposing the appointment of Mr. Bhupendra Singh N Rajput as Director of the Company, liable to retire by rotation. Your Directors recommend his appointment. His appointment is under the category of non-executive independent director.

During the year Mr. Amit Vyas has resigned from the Directorship with effect from 14th February, 2012. The Board appreciated for the services rendered by Mr. Amit Vyas during his tenure as Director of the Company.

PARTICULARS OF EMPLOYEES:

The particulars of the employee of the Company drawing total remuneration of Rs.24,00,000/- per annum or Rs.2,00,000/ - per month as required U/S 217 (2A) of the Companies Act, 1956 is Nil.

FIXED DEPOSITS:

Your Company has not accepted any deposits and, as such, no amount of principal or interest was outstanding on the date of balance sheet.

DIRECTORS' RESPONSIBILITY STATEMENT -SECTION 217 (2AA) OF THE COMPANIES ACT, 1956:

The Board of Directors states:

1) that in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

2) that the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit and loss of the Company for that period;

3) that the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

4) that the Directors had prepared the annul accounts on a going concern basis.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO:

1) CONSERVATION OF ENERGY :

A. Energy Conservation measures taken: The Company gives top most priority to energy conservation.

B. Additional investment and proposal if any being implemented for reduction in consumption of energy : NIL

C. Energy consumption in terms of electricity, LDO and Gas : NIL.

D. Total energy consumption and energy consumption per unit of production : NIL.

2) TECHNOLOGY ABSORPTION :

A. Adoption and innovation : N.A.

B. Research and development ( R & D ) : NIL

3) FOREIGN EXCHANGE EARNINGS AND OUT GO : NIL CORPOTRATE GOVERNANCE:

The Report on Corporate Governance required under Clause 49 of the Listing Agreements is annexed.

LISTING:

The Equity shares of the Company are listed on Ahmedabad and Bombay Stock Exchanges. The Company has paid Annual Listing Fees of Ahmedabad and Bombay Stock Exchange, up to the year 2012-13. Suspension of trading in the Equity shares of your Company has been revoked by the BSE and now your Company's shares are allowed for trading at BSE. The Company is regular in the compliances of various clauses of Listing Agreement during the year.

AUDITORS:

The present Auditors of the Company M/s. Badrilal Punglia & Co., Ahmedabad were appointed as Auditors and will retire at the ensuing Annual General Meeting. M/s. Badrilal Punglia & Co., Chartered Accountants, have submitted certificate for their eligibility for appointment under Section 224(1B) of the Companies Act, 1956. Board of Directors of your Company favour his re-appointment as Auditors of the Company and such re-appointment if done, shall be upto the next Annual General Meeting of the Company.

AUDITORS REPORT AND COMMNETS:

1) The Net worth of the Company has been eroded by more than 50%. However boards of directors are of the opinion that the Company's position will be revived soon and therefore the Company has not approached BIFR for registration as potentially sick company.

2) Explanation for point (3) of Annexure to Auditors Report

As management considered that the amount of ' 16600 is now not recoverable due to bad financial condition of the borrower company, the same were written off. The management will continue its efforts to recover the said amount.

3) Explanation for point (9) of Annexure to Auditors Report

As the liability towards C.S.T. amounting ' 474582 and sales tax amounting ' 10658 is not disputed with the authorities and no authority has till date claimed this amount from the company therefore the board decieded to written off the same.

4) Explanation for point (f) of Auditors Report & Notes No. 8

The management has provided for doubtful debts and written off those amount, chances of recovery of the same was rare. Apart from this no provision has been made for doubtful debts amounting of ' 18606456.12 as the management is in process to recover and hopeful for the same.

ACKNOWLEDGEMENT

Your Directors would like to express their appreciation for the support extended by Bankers and Office bearers of Government Department and Financial Institutions. Your Directors also acknowledge the continued invaluable support extended by you - our shareholders- and the confidence that you have placed in the company.

For and On behalf of the Board

Date : 13/08/2012 Govindram L. Kabra

Place : Ahmedabad Executive Director

 
Subscribe now to get personal finance updates in your inbox!