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

Directors Report of National Oxygen Ltd.

Mar 31, 2015

Ladies and Gentlemen,

The Your Directors have pleasure in presenting 40 ANNUAL REPORT of your Company together st with the Audited Statement of Accounts and the Auditors' Report for the Financial Year ended 31 March, 2015. The summarized financial results for the Financial Year are as under:

FINANCIAL SUMMARY

2014-2015 2013-2014 (Rs in lakh) (Rs in lakh)

Gross Profit /(Loss) (676.97) (374.67)

Depreciation (417.31) (386.44)

Profit / (Loss) before tax (1094.28) (761.11)

Provision for Income tax - (1.006)

Provision for Fringe Benefit Tax - -

Provision / Release of Deferred Tax (11.28) 236.47

Net profit for the year (1083.00) (525.64)

Balance brought forward from the earlier year (219.74) 305.90

(1302.74) (219.74)

PERFORMANCE AND STATE OF COMPANY'S AFFAIRS OF THE COMPANY

During the year under review, the Company has incurred net loss Rs.1083,00,000 as against loss of Rs5,25,65,000 in the previous year. Even though the total revenue of the Company has increased while comparing the previous year, the rise in loss was mainly due to increase in cost of Power & Fuel etc comparing to the previous year. No material changes have occurred or commitments made affecting the financial position of the company, between the end of the financial year of the company to which the financial statements relate and the date of the report

BUSINESS OPERATIONS: Industrial Gases

The order book position is comfortable since the Company was able to tie up long term contracts with the customers. The plant at Pondicherry and Perundurai is also performing at its rated capacity. Your Company is working at its market front since the supply of oxygen and nitrogen has increased compared to previous year.

Windmill

The power generation is normal and we expect the generation of power will improve in the coming months

DIVIDEND

Considering the current and accumulated losses of your Company , the Board of Directors is not recommending any dividend for the year 2014-2015.

TRANSFER OF PROFITS TO RESERVES

During the year your company has met net loss of Rs . 10,83,00,783/- which has been transferred to reserve account as ' Debit balance in statement of profit and loss.

MATERIAL CHANGES AND COMMITMENTS OF THE COMPANY

There were no material changes and commitments affecting the financial position of the Company between the end of financial year ( March 31, 2015 and the date of the Report 06.08.2015)

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS U/S 186:

Details of loans, guarantees and investments covered under the provision of section 186 of the companies act 2013 are given below:

Particulars Number Amount Loan Given NIL NIL

Investment made Unquoted Investments in Equity Instruments

i) Pondicherry Agro 9000 shares 90000.00 Foods Pvt Ltd (Face value Rs.10/-)

ii) Beta Wind Farm Pvt Ltd 168421 shares 31,99,999.00 (Face Value Rs.10/-)

iii)Clarion Wind Farm Pvt Ltd 231152 Shares 2311520.00 (Face Value Rs.10/-)

Investment in Govt. Securities

iv) National Savings Certificate 5000.00

v) Indira vikas patra 500.00 Guarantee Given Nil Nil

SUBSIDIARIES, ASSOCIATES AND JOINT VENTURE COMPANIES

The Company doesn't have any subsidiaries, associates and joint venture companies

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

The details of conservation of energy, technology absorption, foreign exchange earnings and outgo as required under section 134 (3) (m) of the Companies Act 2013 are attached as Annexure -1:

DIRECTORS AND KEY MANAGERIAL PERSONNEL

S. No Name of Directors Designation Date of Date of appointment resignation

1 Gajanand Saraf Managing Director 23.12.1974 -

2 Rajesh Kumar Saraf Joint Managing Director 30.11.1992 -

3 Veena Devi Saraf Director 11.10.1989 -

4 Perumal Siva Independent Director 10.01.1994 -

5 Anil Kumar Seth Independent Director 21.08.1985 -

6 Devmohan Mohunta Independent Director 10.11.1987 -

Retirement by Rotation

In terms of Section 152 of the Companies Act 2013 Smt. Veena Devi Saraf Who retire by rotation at the forthcoming AGM and is eligible for re-appointment.

DECLARATION OF INDEPENDENT DIRECTORS

As per the Companies Act 2013, your company had appointed three independent directors and they have declared that they meet the criteria of independence in terms of Section 149(6) of the Companies Act 2013 and that there is no change in their status of Independence.

REMUNERATION DETAILS OF DIRECTORS:

Details of Remuneration to Mr.Gajanand Saraf Mr.Rajesh Kumar Saraf Directors Managing Director Joint Managing Director

Salary 30,00,000/- 30,00,000/-

PF Contribution 3,60,000/- 3,60,000/-

Others 1,00,000/- 1,00,000/-

INFORMATION U/s 197 (12) OF THECOMPANIES ACT 2013

The information required under section 197 (12) of the Act and read with rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is attached herewith as Annexure-5.

STATUTORY AUDITORS:

As per the provisions of the Companies Act 2013, M/s Sing & Co, Chartered Accountants, had been appointed as the statutory auditors of the Company to hold office from the conclusion of the 39th Annual General Meeting held on 12.09.2014 till the conclusion of Annual General Meeting to be held in 2017 subject to the ratification of share holders in every Annual General Meeting . The company has received confirmation from the audit firm regarding their consent and eligibility under sections 139 and 141 of the Companies Act 2013 read with the Companies ( Accounts ) Rules, 2014 for appointment as the Auditors of the Company.

As required under clause 41 of the Listing Agreement, the Auditors have also confirmed that they hold a valid certificate issued by the Peer Review Board of the Institute of Chartered Accountants of India

The Audit committee and the Board of Directors have recommended to ratify the appointment of auditors for the financial year 2015-16. The necessary resolution is being placed before the shareholder for their approval.

SECRETARIAL AUDITOR

Pursuant to the requirements of Section 204(1) of the Companies Act 2013 and Rule 9 of the Companies ( Appointment and Remuneration of Managerial Personnel ) Rule 2014, the company has appointed, Mrs Lakshmmi Subramanain & Associates , Practicing Company Secretaries to conduct the secretarial audit for the financial year 2014-15.

The Secretarial Audit report as received from the secretarial auditor is annexed to this report as Annexure-2

COMMENT ON SECRETARIAL AUDIRTOR REPORT

With reference to the remarks made by the secretarial auditor, Mrs. Lakshmmi Subramanian, Practicing Company Secretary, in her secretarial audit report , the company has taken the corrective measures during the current financial year.

INTERNAL CONTROL AND ITS ADEQUACY

M/s Sivasubramanian & co, Cost Accountants was appointed as internal auditors of the Company. They regularly conduct audit and submit their quarterly reports, which are reviewed by the Audit Committee. The Company has an adequate Internal Control system, commensurate with the size, scale and complexity of its operations. To maintain its objectivity and independence, the Internal Auditor reports to the Chairman of the Audit Committee of the Board. During the year, such controls were tested and no reportable material weaknesses in the design or operation were observed.

RELATED PARTY TRANSACTIONS U/S 188 (1)

There were no materially significant transactions with Related Parties during the financial year 2014-15 which were in conflict with the interest of the Company. Suitable disclosures as required under AS-18 have been made in Note No.37 of the Notes to the financial statements. Details of the transactions are provided in Form AOC-2 which is attached as Annexure - 3

The Board had approved the Related Party Transactions.

EXTRACT OF THE ANNUAL RETURN:

The details forming part of the extracts of Annual Return in form MGT-9 as provided under sub- section (3) of section 92 of the Companies Act is annexed herewith as Annexure 4 to this report.

RISK MANAGEMENT POLICY

Your Company has an established Enterprise Risk Management function that engages with all the business verticals for risk assessment , ensures that the risk mitigation plans are in place and validates the risk mitigation status regularly . Action plans are incorporated into the corporate plans of your company. The steering committee consisting of core Business vertical Heads overseas the Risk Management process including risk identification, impact assessment, effective implementation of the mitigation plans and risk reporting, The Committee, Chaired by the Managing Director, reviews on a quarterly basis the enterprise risks to the achievement of the business objectives. The steering Committee updates the Risk Management committee comprising of independent directors and non-executive director on the enterprise risks and the action taken thereon

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

Your Company has always believed in providing a safe and harassment free workplace for every individual working in the Company through various interventions and practices. The Company always endeavors to create and provide an environment that is free from discrimination and harassment including sexual harassment.

The Company aims at prevention of harassment of employees and lays down the guidelines for identification, reporting and prevention of undesired behavior. The Board of Directors are responsible for redressal of complaints related to sexual harassment During the year ended 31 March 2015, the Board did not receive any complaints pertaining to sexual harassment.

DEPOSIT FROM PUBLIC

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

CORPORATE GOVERNANCE REPORT

Since your company's paid up capital and Net worth is less than Rs.10 Crores and Rs.25 Corers respectively, the provisions of revised clause 49 relating to Corporate Governance, vide SEBI circular dated CIR/CFD/POLICY CELL/7 is not applicable to the Company.

NUMBER OF BOARD MEETINGS HELD DURING THE YEAR ALONG WITH THE DATES OF THE MEETINGS:

During the Financial Year 2014-2015, the Board met 4 times as follows:

S No. Dates of meeting of the Quarter No of directors Total no of Board on the date of directors meeting attended

1. 22.05.2014 First 6 6

2. 28.07.2014 Second 6 6

3. 31.10.2014 Third 6 6

4. 12.02.2015 Fourth 6 6

The meetings of the Board were held periodically and has not lapsed a period of 120 days between two meetings as prescribed under section 173(1) of the Act.

ANNUAL BOARD EVALUATION

The Nomination and Remuneration Committee of the Board laid down the criteria for performance evaluation of all Directors. The performance evaluation has been done by the entire Board of Directors, except the Director concerned being evaluated. The criteria for performance evaluation are as follows:

Role & Accountability

- Understanding the nature and role of Independent Directors' position

- Understanding of risks associated with the business

- Application of knowledge for rendering advice to management for resolution of business issues

- Offer constructive challenge to management strategies and proposals

- Active engagement with the management and attentiveness to progress of decisions takenObjectivity

- Non-partisan appraisal of issues

- Own recommendations given professionally without tending to majority or popular views

Leadership & Initiative

- Heading Board Sub-committees

- Driving any function or identified initiative based on domain knowledge and experience

Personal Attributes

- Commitment to role & fiduciary responsibilities as Board member – Attendance and active participation – Proactive, strategic and lateral thinking

CODE OF CONDUCT FOR DIRECTORS AND SENIOR MANAGEMENT

The Board of Directors had adopted a Code of Conduct for the Board Members and employees of the company. This code helps the Company to maintain the standard of business ethics and ensure compliance with the legal requirements of the company The code is aimed at preventing any wrongdoing and promoting ethical conduct at the Board and employees. The Compliance officer is responsible to ensure adherence to the Code by all concerned The code lays down the standard of conduct which is expected to be followed by the Directors and the designated employees in their business dealings and in particular on matters relating to integrity in the work place, in business practices and in dealing with stakeholders All the Board Members and the Senior Management personnel have confirmed compliance with the Code

WHISTLE BLOWER POLICY/VIGIL MECHANISM

Pursuant to section 177(9) of the Companies Act, 2013 read with Rule 7 of the Companies ( Meetings of Board and its Powers ) Rules,2014 and clause 49 of the Listing Agreement, the Board of Directors had approved the policy on vigil mechanism / whistle blower and the same was hosted on the website of the Company. The policy inter-alia provides a direct access to the Chairman of the Audit Committee.

Your Company hereby affirms that no Director / employee has been denied access to the Chairman of the Audit Committee and that no complaints were received during the year

BOARD COMMITTEES

The Board had constituted the following committees Viz Audit Committee, Nomination and Remuneration Committee and Stakeholders' Relationship Committee

AUDIT COMMITTEE:

The Audit Committee which acts as a link between the management, external and internal auditors and the Board of Directors of the Company is responsible for overseeing the Company's financial reporting process by providing direction to audit function and monitoring the scope and quality of internal and statutory audits.

The Audit Committee comprises of Mr. P.Siva, Independent Director as Chairman, Mr.Anil Kumar Seth and Mr. D.M.Mohunta, Independent Directors as members.

All members of the Audit Committee are financially literate and have expertise in accounting / financial management.

The Chairman of the Audit Committee was present at the last Annual General Meeting held on 12th September, 2014

The Audit Committee met five times during the year and the time gap between any two meeting did not exceed more than four months

Date of Meetings Total number of members No.of members present

22.05.2014 3 3

28.07.2014 3 3

31.10.2014 3 3

12.02.2015 3 3

Terms of reference in brief

Financials

- Review of the quarterly / half-yearly / annual financial statements with reference to changes, if any in accounting policies and reasons for the same

- Major accounting entries involving estimates based on exercise of judgment by management, adjustments, if any arising out of audit findings.

- Compliance with listing and legal requirements relating to financial statements, qualifications, if any in the draft audit report.

Internal controls and risk management

- Review of internal audit function and discussion on internal audit reports

- Review of vigil mechanism and above all adequacy of internal control systems

- Review of risk management policies especially enterprise level risk management

Compliance and other related aspects

- Disclosure of related party transactions and subsequent modifications, if any.

- Scrutiny of inter-corporate loans and investments

- valuation of undertakings or assets of the company

- uses/application of funds raised through an issue

- Review and recommendation of appointment, remuneration and terms of appointment of statutory auditors

- Review of other services rendered by the statutory auditors

- Review of the management discussion and analysis of the financial conditions and results of operations, significant related party transactions, management letters issued by statutory auditors, internal audit reports The audit Committee also looks into the matters as are specifically referred to it by the Board of Directors besides looking into the mandatory requirements of the Listing Agreement and provisions of Section 177 of the Companies Act 2013.

NOMINATION AND REMUNERATION COMMITTEE:

Constitution

The Nomination and Remuneration committee comprises of Mr. P.Siva, Independent Director as Chairman, Mr.Anil Kumar Seth and Mr. D.M.Mohunta, Independent Directors as members.

Terms of Reference

- The Committee shall formulate the criteria for determining the qualification, positive attributes and independence of a director and recommend to the Board a policy, relating to the remuneration for the directors, key managerial personnel and other employees.

- The Committee shall identify persons who are qualified to become directors and who may be appointed in senior management positions in accordance with the criteria laid down, recommend to the Board their appointment and removal and shall carry out evaluation of every director's performance.

- The Committee shall ensure that level and composition of remuneration is reasonable and sufficient, relationship of remuneration to performance is clear and meets performance benchmarks, and involves a balance between fixed and incentive pay.

- Review the policy from time to time for selection and appointment of Directors and senior management employees and their remuneration;

- Review the performance of the Board of Directors and Senior Management Employees based on certain criteria as approved by the Board. In reviewing the overall remuneration of the Board of Directors and Senior Management, the Committee ensures that the remuneration is reasonable and sufficient to attract, retain and motivate the best managerial talent, the relationship of remuneration to performance is clear and meets appropriate performance benchmarks and that the remuneration involves a balance between fixed and incentive pay reflecting short term and long term objectives of the Company.

- Filling up of vacancies in the Board that might occur from time to time and appointment of additional Non-Executive Directors. In making these recommendations, the Committee shall take into account the special professional skills required for efficient discharge of the Board's functions.

- Recommendation to the board with regard to retirement of Directors, liable to retire by rotation and appointment of Executive Directors.

- To determine and recommend to the Board from time to time

(a) The amount of commission and fees payable to the Directors within the applicable provisions of the Companies Act, 2013.

(b) The amount of remuneration, including performance or achievement bonus and perquisites payable to the Executive Directors

(c) To frame guidelines for Reward Management and recommend suitable schemes for the Executive Directors and Senior Management.

- To determine the need for key man insurance for any of the company's personnel

- To carry out the evaluation of every director's performance

- To carry out any function as is mandated by the Board from time to time and /or enforced by any statutory notification, amendment or modifications as may be applicable.

- Stakeholders' Relationship Committee

(C) Meetings and attendance during the year:

There is no meeting held during the year.

(D) Remuneration policy

The Board has, on the recommendation of the Nomination & Remuneration Committee approved a policy for selection and appointment of Directors, Senior Management and for determining their remuneration.

STAKE HOLDERS RELATIONSHIP COMMITEE

The Stakeholders Relationship Committee specifically looks into issues such as redressing of shareholders' and investors' complaints such as transfer of shares, non-receipt of shares, non- receipt of declared dividends and ensuring expeditious share transfers and also redresses the grievances of deposit holders, debenture holders and other security holders.

(A) Composition, Members, its meetings and attendance

This Committee comprises of Mrs. Veena Devi Saraf as Chairman with Mr.Gajanand Saraf and Mr. P.Siva as members of the Committee.

During the year,six meetings of Stake holders Relationship Committee were held as follows;

Name of Member Category Meetings held Meetings during FY 2015 attended

Mrs. Veena Devi Saraf Non-executive Director/Chairman 6 6

Mr. Gajanand Saraf Managing Director 6 6

Mr.P.Siva Independent Director 6 6

CORPORATE SOCIAL RESPONSIBILITY ( CSR )

Your company is not mandatorily required to constitute CSR committee since it has not come within the purview of threshold limit specified in section 135 of the Companies Act 2013.

DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS/ COURTS/ TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY'S OPERATIONS IN FUTURE:

During the year, there were no such instances of significant and material orders passed by the regulators, courts or tribunals.

DIRECTORS' RESPONSIBILITY STATEMENT:

As required under Section 134 (5) of the Companies Act, 2013, the Board of Directors hereby confirm:- (i) That in the preparation of the Annual Accounts, 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 are reasonable and prudent so as to give a true and fair view of the state of the affairs of the Company at the end of the Financial Year and of the profit of the Company for that period;

(iii) That 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;

(iv) That the Directors had prepared the Annual Accounts on a going-concern basis;

(v) That proper internal financial controls were followed by the Company and that such internal financial controls are adequate and were operating effectively.

(vi) That the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

GENERAL INFORMATION

AGM Date, Time and Venue 26th September 2015 at 9.30 a.m Hotel Kanchi, No.28, Ethiraj Salai, Egmore Chennai-600 008

Financial Calendar 1st Quarter 1st April to 30 June

nd st th

2nd Quarter 1st July to 30 September

3rdQuater 1st October to 31st December

4 th Quarter 1st January to 31 March

Date of Book Closure 19.9.2015 to 26.9.2015

Record Dates 19.9.2015

Dividend Payment date Not applicable

Listing with Stock Exchanges Bombay Stock Exchange

Address of the Registered office No.80 ( Old No.141 ) Greams Road Opp. to Greams Road Post Office Chennai Tamilnadu 600006

E-mail id contact@nolgroup.com

Web Site www,nolgroup.com

ACKNOWLEDGEMENT

Your Directors would like to express their sincere appreciation of the co-operation and assistance received from the business constituents during the year under review.

By Order of the Board,

Place : Chennai

Sd/- Sd/-

Date : 06.08.2015 Rajesh Kumar Saraf G.N.Saraf

Joint Managing Director Managing Director

DIN:-00007353 DIN:-00007320


Mar 31, 2014

Dear Members,

The Directors of your Company present its 39th Annual Report on the functioning of the Company together with the Profit and Loss Account for the year ended 31st March 2014 and the Balance Sheet as at that date together with the Auditor''s Report thereon.

Financial Results:

Current year Previous Year 31.03.2014 31.03.2013 (Rs. in Lakhs) (Rs. in Lakhs)

Gross Profit / (Loss) (374.67) 406.51

Depreciation (386.44) (347.58)

Profit / (Loss) before Tax (761.11) 58.93

Provision for Income Tax (1.006) (25)

Provision for Fringe Benefit Tax - -

Provision/ Release of Deferred Tax 236.47 24.95

Net Profit for the year (525.64) 58.88

Balance brought forward from the earlier year 305.90 309.20

(219.74) 368.08

During the financial year 2013-14, your company was not able to attain reasonable profit levels and register a net loss of Rs. (525.64) lakhs as compared to profit of Rs. 58.88 lakhs in the previous year.

Business Operations:

Industrial Gases

The order book position is comfortable since the Company was able to tie up long term contracts with the customers. The plant at Pondicherry and Perundurai is also performing at its rated capacity. Your Company is working at its market front since the supply of oxygen and nitrogen has increased compared to previous year.

Windmill:

The Power generation is normal and we expect the generation of power will improve in the coming months.

Dividend:

The Operations of the Company have resulted in a loss as explained in the Financial result. Hence, your director regret that they are unable to recommend any dividend on the Equity share capital of the Company for the year under review.

Directors:

The Company has, pursuant to the provisions of clause 49 of the Listing Agreement entered into with the Stock Exchange has appointed Mr. Perumal Siva, Mr. Anil Kumar Seth and Mr. Devmohan Mohunta as Independent Directors of the Company. The Company has received declarations as the appointee independent directors, that they meet the criteria of independence, as prescribed both under sub-section (6) of Section 149 of the Companies Act 2013 and under the said clause 49. In accordance with the provisions of section 149(4) and section 152 (5) of the Companies Act,2013, Mr. Perumal Siva, Mr.Anil Kumar Seth and Mr. Dev Mohan Mohunta are being appointed as Independent Directors to hold office as per their tenure of appointment mentioned in the Notice of the forthcoming AGM of the Company.

Smt. Veena Devi Saraf are retiring at this meeting by rotation and being eligible, offer themselves for reappointment.

Rights Issue:

The Company has not made any right issue during the year.

Fixed Deposits:

The Company has not accepted any fixed deposits during the year.

Particulars of Employees and Labour Relations:

None of the employees fall under the category specified under Sec.217 (2A) of the Companies Act, 1956 and the Rules thereunder.

The relations with the employees during the year had been smooth and cordial.

Conservation of Energy, Technology Absorption and Foreign Exchange inflow & Outgo:

Prescribed particulars under Section 217(1)(e) of the Companies Act, 1956 are furnished as Annexure-A to this Report.

Director''s Responsibility Statement:

Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956, your Directors confirm that in the preparation of the annual accounts for the financial year ended 31st March 2014, the applicable accounting standards have been followed along with proper explanation related to material departures, if any.

- they 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 on 31st March, 2014 and of the profit and loss of the company for that period.

- proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

- the annual accounts are prepared on a going concern basis.


Mar 31, 2013

The Directors of your Company present its 38th Annual Report on the functioning of the Company together with the Profit and Loss Account for the year ended 31st March 2013 and the Balance Sheet as at that date together with theAuditor''s Report thereon.

Financial Results: Current year Previous Year 31.03.2013 31.03.2012 (Rs.in Lakhs) (Rs.in Lakhs)

Gross Profit /(Loss) 406.51 452.16

Depreciation (347.58) (9358.74)

Profit / (Loss) before Tax 58.93 93.42

Provision for Income Tax (25) (7.20)

Provision for Fringe Benefit Tax

Provision/Release of Deferred Tax 24.95 (7.48)

Net Profit for the year 58.8 78.74

Balance brought forward from the earlier year 309.2 286.69

368.08 365.43

During the financial year 2012-13, despite the power crisis and increased business competition, your company was able to maintain profit levels and register a net profit of Rs. 58.88 lakhs which is however lower that the profit of Rs. 78.73 lakhs earned in the previous year.

Business Operations:

Industrial Gases

Your Company was able to successfully commission the plant at SIPCOT Industrial Growth Centre, Perundurai near Erode. The plant at Pondicherry is also performing at its rated capacity. Your Company is working on the market front since the supply of oxygen and nitrogen has increased compared to the previous year.

Windmill:

The Power generation is normal and we expect the generation of power will continue at the same level.

Dividend:

Your Board of Directors recommends dividend of Rs. 1 per share, i.e. 10 percent (Re. 1 per equity share of Rs 10/- each fully paid-up) for the year ended 31 March, 2013, to equity shareholders aggregating to Rs.4802271 together with the Corporate Dividend Distribution Tax of Rs.8,16,146. The total payout will be Rs. 56,18,417 subject to approval of the shareholders in the ensuing Annual General Meeting.

Directors:

Smt. Veena Devi Saraf and Mr Devmohan Mohunta are retiring at this meeting by rotation and being eligible, offer themselves for reappointment.

Mr G N Saraf, Managing Director was re-appointed by the Board of directors in their meeting held on 12 August 2013 subject to the approval of members for a period of three years with effect from 01 September 2013.

Mr Rajesh Kumar Saraf, Joint Managing Director is also proposed to be re-appointed for a period of three years with effect from 01 October 2013.

Rights Issue:

The Board of Directors of National Oxygen Limited wishes to thank all its members and investors for their response to the Company''s Rights Issue of Equity Shares, which opened for subscription on Wednesday, July 11,2012 and closed on Thursday, August 09,2012 with an issue size of Rs 934.97 lakhs. The total amount collected on application is Rs 895.28 lakhs for 17,90,561 Equity Shares, which is 95.75% of the total Issue size.

The Basis of Allotment was approved by Bombay Stock Exchange Limited ("BSE"), the Designated Stock Exchange on August 17, 2012. Pursuant to the approval, the Board of Directors has allotted 16,85,721 Equity Shares in its meeting held on August 17, 2012. All the valid applications (including Application Supported by Blocked Amount ("ASBA") have been considered for allotment.

The proceeds of the rights issue were utilized for the purpose mentioned in the letter of offer of the said rights issue.

The Board once again wishes to thank all the shareholders for making the issue success.

Fixed Deposits:

The Company has not accepted any fixed deposits during the year.

Particulars of Employees and Labour Relations:

None of the employees fall under the category specified under Sec.217 (2A) of the Companies Act, 1956 and the Rules thereunder.

The relations with the employees during the year had been smooth and cordial.

Conservation of Energy, Technology Absorption and Foreign Exchange inflow & Outgo:

Prescribed particulars under Section 217(1)(e) of the Companies Act, 1956 are furnished as Annexure-A to this Report.

Director''s Responsibility Statement:

Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956, your Directors confirm that

- in the preparation of the annual accounts for the financial year ended 31st March 2013, the applicable accounting standards have been followed along with proper explanation related to material departures, if any.

- they have 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 as on 31st March, 2013 and of the profit and loss of the company for that period.

- proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

- the annual accounts are prepared on a going concern basis.

Corporate Governance:

As a listed Company, necessary measures are taken to comply with the listing agreements with stock exchanges. A Report on Corporate Governance .along with certificate of Compliance from the Practicing Company Secretary forms Annexure-B to this report.

Management Discussion and Analysis Report:

A Management Discussion and Analysis Report is given as Annexure C to this report.

Auditors:

Messrs. Singhi& Co., Chartered Accountants, retire at this meeting and being eligible are proposed for reappointment. They also expressed,theif willingness to continue in office if reappointed, at the ensuing annual general meeting.

Compliance Certificate:

In accordance with Section 383Aof the Companies Act, 1956, and Companies (Certificate) Rules, 2001, the company has obtained a certificate from M/s. Lakshmmi Subramanian & Associates, Chennai, Secretary in whole time practice confirming that the company has complied with all the provisions of Companies Act, 1956 and a copy of such certificate is annexed to the report.

CostAudit:

Our Company is covered under Cost Audit from the current year (2012-13) onwards and we have appointed M/s Sivasubramanian & Co., Practicing Cost Accountants as the Cost Auditors of the Company.

Acknowledgement:

Your Directors take this opportunity to place on record their appreciation of the continued support and Co-operation from Punjab National Bank and HDFC Bank Limited.

Your Directors also wish to convey their thanks to all the valued customers and the valuable services rendered by the Officers, Staff and Workers at all levels.

For and on behalf of the Board

Place: Chennai G.N.Saraf

Pate : 12.08.20t3 Chairman and Managing Director


Mar 31, 2012

The Directors of your Company present its 37th Annual Report on the functioning of the Company together with the Profit and Loss Account for the year ended 31st March 2012 and the Balance Sheet as at that date together with the Auditor's Report there on.

Financial Results:

Current year Previous Year 31.03.2012 31.03.2011 (Rs.in Lakhs) (Rs.in Lakhs)

Gross Profit / (Loss) 452.16 428.38

Depreciation 358.74 323.37

Profit / (Loss) before Tax 93.42 105.01

Provision for Income Tax 7.20 21.00

Provision for Fringe Benefit Tax - -

Provision/ Release of Deferred Tax 7.48 21.00

Net Profit for the year 78.74 63.01

Balance brought forward from the earlier year 286.69 309.89

365.43 372.90

During the financial year 2011-12, despite the power crisis and increased business competition, your company was able to attain reasonable profit levels and register a net profit of Rs. 78.74 lakhs as compared to profit of Rs. 63.01 lakhs in the previous year. ,

Business Operations:

Industrial Gases

The order book position is comfortable since the Company was able to tie up long term contracts with the customers. The newly erected plant at Pondicherry had performed well and was able to reach optimum production levels but for the difficulty in the power front. The proposed plant under implementation in Perundurai, Erode District, is expected to commence production during second half of 2012-13. '

Windmill:

The Power generation is normal and we expect the generation of power will improve in the coming months.

Dividend:

The Board of Directors in their meeting held on 3rd May, 2012 had declared an Interim dividend of 10% (Re 1 per equity share of Rs 10/- each fully paid up) for the year ended 31st March 2012 on the paid up capital of the Company aggregating to Rs. 31,16,550 which was paid to those shareholders whose /lames appeared in the Register of Members as at the closing hours of business on 12th May 2012. your Board of Directors wish to recommend the same for confirmation as final dividend, by the shareholders at the ensuing Annual General Meeting.

Directors:

Mr Anil Kumar Seth and Mr P Siva are retiring at this meeting by rotation and being eligible, offer themselves for reappointment. .

Rights Issue:

The Company received the required minimum subscription of 90 percent of the issue size by the closure of the issue.

Out of the above issue, the Company has allotted 16,85,721 equity shares to the existing shareholders and the Company has also obtained the Listing/ trading approval from the Bombay Stock Exchange and the Madras Stock Exchange.

The Board of Directors is proposing to utilize the proceeds of the rights issue towards setting up of a new plant in Perundurai, Erode District, Tamil Nadu.

The Board, further, thank all the shareholders for making the issue success.

Fixed Deposits:

The Company has not accepted any fixed deposits during the year.

Particulars of Employees and Labour Relations:

None of the employees fall under the category specified under Sec.217 (2A)of the Companies Act, 1956 and the Rules there under.

The relations with the employees during the year had been smooth and cordial.

Conservation of Energy, Technology Absorption and Foreign Exchange inflow & Outgo:

Prescribed particulars under Section 217(1 )(e) of the Companies Act, 1956 are furnished as Annexure-A to this Report.

Director's Responsibility Statement:

Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956, your Directors confirm that ' -

- in the preparation of the annual accounts for the financial year ended 31st March 2012, the applicable accounting standards have been followed along with proper explanation related to material departures, if any.

- they 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 on 31st March, 2012 and of the profit and loss of the company for that period.

- proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

- the annual accounts are prepared on a going concern basis.

Corporate Governance:

As a listed Company, necessary measures are taken to comply with the listing agreements with stock exchanges. A Report on Corporate Governance, along with certificate of Compliance from the Practising Company Secretary forms Annexure-B to this report.

Management Discussion and Analysis Report:

A Management Discussion and Analysis Report is given as Annexure C to this report.

Auditors:

Messrs. Singhi & Co., Chartered Accountants, retire at this meeting and being eligible are proposed for reappointment. They also expressed their willingness to continue in office if reappointed, at the ensuing annual general meeting.

Compliance Certificate:

In accordance with Section 383Aof the Companies Act, 1956, and Companies (Certificate) Rules, 2001, the company has obtained a certificate from M/s. Lakshmmi Subramanian & Associates, Chennai, Secretary in whole time practice confirming that the company has complied with all the provisions of Companies Act, 1956 and a copy of such certificate is annexed to the report.

Cost Audit Compliance Certificate:

Our Company has obtained the Cost Audit Compliance Certificate for the period ended 31st March, 2012 issued by M/s Sivasubramaniart & Co., Cost Accountant and the same shall be filed with MCA.

Acknowledgement:

Your Directors take this opportunity to place on record their appreciation of the continued support and Co-operation from Punjab National Bank and HDFC Bank Limited.

Your Directors also wish to convey their thanks to all the valued customers and the valuable services rendered by the Officers, Staff and Workers at all levels.

For and on behalf of the Board

Place: Chennai G.N.Saraf

Date : 03.09.2012 Chairman and Managing Director


Mar 31, 2010

The Directors of your Company present its 35lh Annual Report on the functioning of the Company together with the Profit and Loss Account for the year ended 31st March 2010 and the Balance Sheet as at that date together with the Auditors Report thereon.

Financial Results:

Current year Previous Year

31.03.2010 31.03.2009 (Rs.in Lakhs) (Rs.in Lakhs)

Gross Profit / (Loss) 189.23 306.30

Depreciation 201.45 196.66

Profit / (Loss) before Tax (12.21) 109.64

Provision for Income Tax - 55.00

Provision for Fringe Benefit Tax - 2.18

Provision/ Release of Deferred Tax 1.17 (49.21)

Net Profit / (Loss) after Tax (13.38) 101.67

Balance brought forward from the earlier year 409.62 394.41

396.23 496.08



For this financial year 2009-10, as the severe unscheduled load shedding in the Union Territory of Puducherry continued, the production of industrial gases at our Plant, reduced considerably, which has affected the profitability of the company significantly. Severe power cuts, aging of the plant resulting in reduction of production and hectic competition from MNCs resulted in a net loss of Rs. 13.38 lakhs as compared to a net profit Rs.101.67 lakhs in the previous year.

Business Operations:

Industrial Gases

Despite the continuing power crisis in Puducherry and overall economic downtrend in the country, the company is able to maintain its production and sales, mainly due to the regular orders from Government Departments and long standing customers.

During the fag end of the last quarter of the current financial year the company has installed and commissioned its new plant imported from china, consequently the company expects a considerable increase in production and thereby resulting in increase in profit.

Windmill:

The Power generation was normal but for the non-seasonal period.

Dividend:

The Directors wish to recommend a Dividend of 10% (Re. 1 per equity share of Rs.10/- fully paid up) for the year ended 31st March 2010.

Directors:

Mr.P. Siva and Mr. Anil Seth are retiring at this meeting by rotation and being eligible, offer themselves for reappointment and the Board of Directors recommend their reappointment.

The approval of the shareholders for confirmation of reappointment of Mr.G.N.Saraf as Managing Director is put forth at the ensuing Annual General Meeting

Re - listing at Madras Stock Exchange:

The Company has withdrawn its previous delisting application from Madras stock exchange and continues to be listed and traded in Madras Stock Exchange.

The shares of the Company are quoted and traded in National Stock Exchange w.e.f.30.06.2010 through MOU between Madras Stock Exchange and National Stock Exchange.

Fixed Deposits:

The Company has not accepted any fixed deposits during the year.

Particulars of Employees and Labour Relations:

None of the employees fall under the category specified under Sec.217 (2A) of the Companies Act, 1956 and the Rules there under.

The relations with the employees during the year had been smooth and cordial.

Conservation of Energy, Technology Absorption and Foreign Exchange inflow & Outgo:

Prescribed particulars under Section 217(1)(e) of the Companies Act, 1956 are furnished as Annexure-A to this Report.

Directors Responsibility Statement:

Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956, your Directors confirm that

- in the preparation of the annual accounts for the financial year ended 31st March 2010, the applicable accounting standards have been followed along with proper explanation related to material departures, if any.

- they have 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 as on 31s March, 2010 and of the Profit and Loss of the company for that period.

- proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

- the annual accounts are prepared on a going concern basis.

Corporate Governance:

As a listed Company, necessary measures are taken to comply with the listing agreements with Stock Exchanges. A Report on Corporate Governance, along with certificate of Compliance from the Practising Company Secretary forms Annexure-B to this report.

Management Discussion and Analysis Report:

A Management Discussion and Analysis Report is given as Annexure C to this report.

Auditors:

Messrs. Singhi & Co., Chartered Accountants, retire at this meeting and being eligible are proposed for reappointment. They also expressed their willingness to continue in office if reappointed, at the ensuing annual general meeting.

Reply to Auditors Remarks:

In reply to the remarks made by the auditor in Point No.Ill of Auditors Report, the Board wishes to state that the recommendation of dividend for the year 2009-10 was made in the Board of Directors meeting held on 30.07.2010 and hence the information relating to the proposed dividend could not be incorporated in the audited accounts which were adopted by the board on 28.05.10.

Compliance Certificate:

In accordance with Section 383A of the Companies Act, 1956, and Companies (Certificate) Rules, 2001, the company has obtained a certificate from M/s. Lakshmmi Subramanian & Associates, Chennai, secretary in the whole time practice confirming that the company has complied with all the provisions of Companies Act, 1956 and a copy of such certificate is annexed to the report.

Acknowledgement:

Your Directors take this opportunity to place on record their appreciation of the Continued Support and Co-operation from Punjab National Bank.

Your Directors also wish to convey their thanks to all the valued customers and the valuable services rendered by the Officers, Staff and Workers at all levels.

For and on behalf of the Board

Place: Chennai G.N. Saraf

Date: 30.7.2010 Chairman and Managing Director



 
Subscribe now to get personal finance updates in your inbox!