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Directors Report of Star Delta Transformers Ltd.

Mar 31, 2015

To

THE MEMBERS

STAR DELTA TRANSFORMERS LIMITED

BHOPAL

The Directors have pleasure in presenting the 39th Director's Report of your Company together with the Audited Statement of Accounts and the Auditors' Report of your company for the financial year ended, 31st March, 2015.

1. FINANCIAL HIGHLIGHTS AND OPERATION:

(Rupees in Thousands)

2014-2015 2013-2014

Sales and other income 534245 665880

Profit before depreciation 31082 39499

Depreciation 8898 8626

Profit before tax 22184 30873

Provision for tax 5413 6200

Deferred

Deffered tax provision written off - 618

Income tax earlier year (14) 267

Net Profit after tax 16771 30585

Profit brought forward from previous year 1707 2877

Transfer to general reserve 10,000 30000

Balance carried forward 6685 2877

2. STATE OF COMPANY'S AFFAIRS & FUTURE OUTLOOK:

The Company's revenue has been declined from Rs. 66,58,80,858 to Rs 534244817 i.e. 19.76% and Company's profit before tax has declined from Rs 30873013 to Rs 22183331 i.e. 28.14% due to slowdown in global and Indian economies, volatile markets, high competition, increase in production costs and other operating and administrative costs.

Company is expected to have good demand for Distribution and Power Transformers and power related equipments because massive investments are planned in coming years by the Govt. (Central & States) as well as private sector.

3. DIVIDEND:

Keeping in view the overall performance during the year, your Directors are pleased to recommend a dividend of Rs 0.50 per equity share on the face value of Rs. 10/- each

4. AMOUNTS TRANSFERRED TO RESERVES:

The Company has transferred Rs 100 Lakh to its General reserve.

5. CHANGES IN SHARE CAPITAL, IF ANY:

During the Financial Year 2014-15, no change has been occurred in the share capital of the Company.

6. MATERIAL CHANGES AND COMMITMENTS:

No material changes and commitments affecting the financial position of the Company occurred between the end of the financial year to which this financial statements relate on the date of this report

7. EXTRACT OF ANNUAL RETURN:

The Extract of Annual Return as required under section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014, in Form MGT-9 is annexed herewith for your kind perusal and information. (Annexure: I)

8. LOANS, GUARANTEES AND INVESTMENTS:

There were no loans, guarantees or investments made by the Company under Section 186 of the Companies Act, 2013 during the year under review and hence the said provision is not applicable.

9. RELATED PARTY TRANSACTIONS:

The Company has entered into various Related Parties Transactions as defined under Section 188 of the Companies Act, 2013 with related parties as defined under Section 2 (76) of the said Act. Further all the necessary details of transaction entered with the related parties are attached herewith in Form No. AOC-2.(Annexure: II).

The policy on RPT as approved by Board is uploaded on the Company's website www.stardeltatransformers.com Suitable disclosures have been made in the financial statements as prescribed in accounting standards.

All related party transactions which were entered into during the year were on an arm's length basis, in the ordinary course of business and not material under clause 49 of Listing Agreement and does not require shareholders' prior approval under the Companies Act, 2013 and Listing Agreement. Company has obtained approval from the Regional Director under Section 297 (1) of the Companies Act 1956 through letter No. RD(NWR)/Sec.297/310/2013/3238 dated 10 September 2013 and letter No. RD(NWR)/Sec.297/313/2013/2956 dated 22 August 2013.

10. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE OUTGO:

Conservation of Energy:

Company continues its efforts to reduce and optimize the energy consumption at all manufacturing facilities, including corporate office through continuous monitoring and high degree of awareness for energy conservation. Company also has its own solar power plant.

Technology Absorption:

The Company continues to use the latest technologies for improving the productivity and quality of its services and products. The Company's has not imported technology durning the last three years and No Research work has been carried out and therefore there is no expenditure on this account.

11. RISK MANAGEMENT:

Risk management policy and processes enable the Company to proactively manage uncertainty and changes in the internal and external environment to limit negative impacts and capitalize on opportunities. Risk Management is a central part of firm's strategic management.Risk Management is a continuous process. There are four fundamental approaches:

- Identity

- Asses & Evaluate

- Take action

- Review & report

Identified risk elements

- State/local regulations

- Labour concerns

- General economic conditions

- Commodity/ Raw material prices

- Competition

- Demand for products

- Technology innovation

- Legal/ Secretraial

- Natural disasters

Company through its functional heads reviews from time to time the deviation from the benchmarks and promptly make report to the Board, which in turn takes the corrective action to avoid severe conditions. The framework seeks to create transparency, minimize adverse impacts on the business objectives and enhance the Company's competitive advantage.

12. DIRECTORS and KMP:

During the financial year 2014-15 the following changes have occurred in the constitution of Directors/KMP of the company:

- Mr. Kishore Gupta, (DIN: 00014205) was reappointed as the Managing Director in the Extra ordinary general meeting for a term of five years held on 27th March 2015 and was designated as KMP in the Board meeting held on 27th March 2015.

- Mr. Rakesh Gupta (DIN: 00014139), Whole time director was Designated as Key managerial Personnel(Chief financial officer) in the Board meeting held on 27th March 2015.

- Mrs. Chhavi Kharb (DIN: 01791358) was appointed as the Women cum Independent director for a term of five years in the Extra ordinary general meeting held on 27th March 2015

- Mr. Laxmendra Maheshwari (DIN:00278005) was reappointed as the Independent Director in the Extra ordinary general meeting for a term of five years held on 27th March 2015

- Mr. Shahshendra Lahri (DIN:02704101) was reappointed as the Independent Director in the Extra ordinary general meeting for a term of five years held on 27th March 2015

13. DEPOSITS:

The company has not accepted any deposits during the year 2014-15.

14. INDEPENDENT DIRECTORS & DECLARATION:

Company's Board of Director comprises of following three Independent Directors:

Name Date of Original appointment Date of Re-appointment

Mr. Laxmendra Maheshwari (DIN:00278005) 25/06/2009 27/03/2015

Mr. Shahshendra Lahri (DIN:02704101) 25/06/2009 27/03/2015

Mrs. Chhavi Kharb (DIN: 01791358) 27/03/2015 -

The Board of Directors of the Company hereby confirms that all the Independent directors duly appointed by the Company have given the declaration and they meet the criteria of independence as provided under section 149(6) of the Companies Act, 2013.

The Company issues a formal letter of appointment to independent directors in the manner as provided in the Companies Act, 2013 and clause 49 of the Listing Agreement. The terms and conditions of appointment of independent directors are placed on the Company's website.

A separate meeting of Independent Directors was conducted as per the Clause 49 of the Listing Agreement on 30th October, 2014. All the independent directors were present for the meeting.

15. ANNUAL EVALUATION:

Pursuant to the provisions of the Companies Act, 2013, Schedule IV & Clause 49 of the Listing agreement, the company has evaluated the performance of every Director, Independent Directors, Board and its Committees and Chairperson based on the criteria laid down by the Nomination and Remuneration Committee. Rating sheets were circulated to the directors for the purpose of evaluation. A summary of performance evaluation of the Board, its Committees and individual directors was prepared on the basis of rating sheets received from the individual directors and the same was placed before the Board.

16. DETAILS OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS:

Internal financial controls with reference to the financial statements were adequate and operating effectively.

17. CORPORATE SOCIAL RESPONSIBILITY:

Detailed information report on corporate social responsibility policy developed and implemented by the Company on CSR initiatives taken during the year pursuant to section 135 of the Companies Act, 2013 is given in the annexed Annual Report on CSR activities. (Annexure: III) Company has not spent on the CSR activities in the Financial year 2014-15. During the financial year, our efforts focused on monitoring and impact measuring systems so as to ensure that CSR Funds are optimally utilized. We are currently in the process of evaluating strategic avenues for CSR expenditure in order to deliver optimal impact. In the years to come, we will further augment our effort to meet the targeted CSR spends. We will make concerted efforts to spend the prescribed CSR amount in the subsequent years.

18. ANTI SEXUAL HARASSMENT POLICY:

The Company has in place an Anti Sexual Harassment Policy in line with the requirements of the Sexual Harassment of Women at the Workplace (Prevention, Prohibition and Redressal) Act, 2013. All women employees (permanent, contractual, temporary, trainees) are covered under this policy. During the year 2014-15, no complaints were received by the committee.

19. VIGIL MECHANISM:

As per Section 177(9) and (10) of the Companies Act, 2013, and as per the Clause 49 of the Listing Agreement, the company has established Vigil Mechanism for directors and employees to report genuine concerns and made provisions for direct access to the chairperson of the Audit Committee. Company has formulated the present policy for establishing the vigil mechanism/ Whistle Blower Policy to safeguard the interest of its stakeholders, Directors and employees, to freely communicate and address to the Company their genuine concerns in relation to any illegal or unethical practice being carried out in the Company. The same has been posted on the website of the Company.

20. NUMBER OF MEETINGS OF THE BOARD:

There were nine meetings of the Board held during the year, details of which are as follows:

S.No. Date Board Strength No. of Directors Present

1 30.05.2014 4 4

2 12.06.2014 4 4

3 30.07.2014 4 4

4 30.10.2014 4 4

5 03.11.2014 4 4

6 31.01.2015 4 4

7 16.02.2015 4 4

8 27.03.2015 5 5

9 30.03.2015 5 4

21. COMMITTEES OF THE BOARD

The Company's Board has the following Committees:

1. Audit Committee

Pursuant to the provisions of Section 177 of the Companies Act 2013 and rules made there under, the Committee was reconstituted by the Board at its meeting held on 27th March 2015.The reconstituted Committee consists of the following members:

Name of Member Status

Mrs. Chhavi Kharab Chairperson

Mr. Laxmendra Maheshwari Member

Mr. Rakesh Gupta Member

Before reconstitution Laxmendra Maheshwari(Chairman), Kishore Gupta and Shashendra Lahri were the members of the Committee.

2. Nomination and Remuneration Committee

Pursuant to the provisions of Section 178 of the Companies Act 2013 and rules made there under, the Board has constituted a Nomination and Remuneration Committee in the meeting held on March 27, 2015 with the following composition:

Name of Member Status

Mr. Laxmendra Maheshwari Chairperson

Mr. Kishore Gupta Member

Mr. Shashendra Lahri Member

Mrs. Chhavi Kharab Member

3. Stakeholders Relationship Committee

Pursuant to Clause 49 and provisions of Section 178 of the Companies Act 2013 and rules made there under, the Shareholder/Investor Grievance Committee was renamed & reconstituted by the Board as Stakeholders Relationship Committee in the meeting held on 27th March 2015 as follows:

Name of Member Status

Mr. Laxmendra Maheshwari Chairperson

Mrs. Chhavi Kharab Member

Mr. Rakesh Gupta Member

Before reconstitution Laxmendra Maheshwari(Chairman), Rakesh Gupta and Shashendra Lahri were the members of the Committee.

4. Corporate Social Responsibility Committee

Pursuant to the provisions of Section 135 of the Companies Act 2013 and rules made there under, Corporate Social Responsibility Committee under was constituted by the Board on 31st January 2015 comprising of the following members:

Name of Member Status

Mr. Kishore Gupta Chairperson

Mr. Laxmendra Maheshwari Member

Mr. Rakesh Gupta Member

The detailed description of the above Committees of the board is provided in the Corporate Governance section of the annual report.

22. TRAINING TO INDEPENDENT DIRECTORS:

The Company, being conscious of this responsibility, has been following the below mentioned practices which have helped its non-executive and independent directors to equip themselves:

- Presentation by the Managing Director/ Senior Managerial Personnel covering:

- the details of the Company, its history, shareholding pattern, the Board structure, the Board Committees and their functions, Code/policies applicable to the directors, their roles, responsibilities, duties, rights as a director, important developments etc.

- the details of nature of industry, types of products, brands, position of the Company in the industry, sales and distribution channel, etc.

- The details of the business model of the Company, financial details, risk management, treasury management.

- major developments in legal & regulatory areas, as was done in 2014-15, in the areas of the new Companies Act 2013, the new Clause 49 of the Listing Agreement.

ii. The Independent Directors are also encouraged to visit Company's plants and interact with plant heads, functional heads.

The Company management has reviewed these practices from time to time and is of the opinion to continue them for the benefit of non-executive and independent directors.

23. PARTICULARS OF EMPLOYEES:

The information required under Section 197 of the Act read with rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are given below:

a. The ratio of the remuneration of each director to the median remuneration of the employees of the Company for the financial year:

Name Designation Ratio to median remuneration

Kishore Gupta Managing Director 16.32

Rakesh Gupta Whole time director 10.88

Notes:

Number of employees as on 31.03.2015

Median remuneration of employees other than whole time directors

b. The percentage increase in remuneration of each director, chief executive officer, chief financial officer, company secretary in the financial year:

There was no increase in the remuneration of director, chief executive officer, chief financial officer, company secretary in the financial year 2014-15.

Note: Company has appointed Company Secretary w.e.f. 22nd April 2015.

c. The percentage increase in the median remuneration of employees in the financial year:

2014-15 2013-14 Percentage increase in median remuneration in 2014-15

Median Remuneration of employees 88200 67200 31.25% other than whole time directors

d. The number of permanent employees on the rolls of Company:

Total permanent employees as on 31.03.2015 are Fifty nine excluding whole time Directors

e. The explanation on the relationship between average increase in remuneration and Company performance: Company's revenue has declined from Rs. 665880858 to Rs 534244817 i.e.19.76%

Company's profit before tax has declined from Rs 30873013 to Rs 22183331 i.e. 28.14%

On an average individual employees remuneration increased by 8%-10% from Financial year 2013-14 to Financial year 2014-15.

The increase in remuneration is in line with the market trends, cost of living and to ensure the retention of skilled staff and compliance of Minimum wages Act.

f. Comparison of the remuneration of the key managerial personnel against the performance of the Company:

Aggregate remuneration of key managerial personnel (KMP) 2400000

2014-15 2013-14

Remuneration of KMP (as % of revenue) 0.45 0.36

Remuneration of KMP (as % of PBT) 10.81 7.77

Remuneration of KMP (as % of PAT) 14.30 7.84

g. Variations in the market capitalization of the Company, price earnings ratio as at the closing date of the current financial year and previous financial year:

Particulars As on 31.3.2015 As on 31.3.2014

Market Capitalization 21.87 Cr. 21.21 Cr.

P/E Ratio 13.04 6.93

h. Percentage increase over decrease in the market quotations of the shares of the Company in comparison to the rate at which the Company came out with the last public offer:

The Company has not made any public offer in the recent past and accordingly comparison of public offer price and the current market price of the Company's shares will not be relevant.

i. Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration:

On an average individual employees remuneration increased by 8%-10% from Financial year 2013-14 to Financial year 2014-15, However there is no increase in the managerial remuneration.

The increase in remuneration is in line with the market trends, cost of living and to ensure the retention of skilled staff and compliance of Minimum wages Act.

There are no exceptional circumstances for increase in the managerial remuneration

j. Comparison of each remuneration of the key managerial personnel against the performance of the Company:

FY 2014-15 Mr. Kishore Gupta Mr. Rakesh Gupta Managing Director Whole time director & CFO

2014-15 2013-14 2014-15 2013-14

Remuneration 1440000 960000

Revenue 534244817 665880858 534244817 665880858

Remuneration as a % of revenue 0.26 0.21 0.17 0.14

Profit Before tax (PBT) 22183331 30873013 22183331 30873013

Remuneration as a % of PBT 6.49 4.66 4.32 3.10

k. The key parameters for any variable component of remuneration availed by the directors:

None.

l. The ratio of the remuneration of the highest paid director to that of the employees who are not directors but receive remuneration in excess of the highest paid director during the year:

None.

m. Affirmation that the remuneration is as per the remuneration policy of the Company:

The Company affirms that the remuneration is as per the remuneration policy of the Company.

Statement showing employees who are covered under Rule 5 (2) (iii) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

Designation of the employee Mr. A.R. Das, Vice President

Remuneration received 105000 per month

Nature of employment, whether contractual or otherwise Permanent

Qualifications and experience of the employee B.E. 35 years

Date of commencement of employment 01st December 2008

The age of such employee 56

The last employment held by such employee before joining the company Self-employed

The percentage of equity shares held by the employee in the company NIL

Whether any such employee is a relative of any director or manager of the NO company and if so, name of such director or manager:

24. REMUNERATION POLICY:

The remuneration policy as recommended by the Nomination and Remuneration Committee and approved by Board in Board meeting is presented in the Corporate Governance report forming part of the Annual report.

25. SHARES IN SUSPENSE ACCOUNT:

There are no shares in suspense account

26. SHARES IN UNCLAIMED SUSPENSE ACCOUNT:

There are no shares in unclaimed suspense account

27. CODE OF CONDUCT:

During the year, a revised code of conduct for all Board members and Senior Management of the Company was approved by the Board to comply with the provisions of revised clause 49. The said code has been posted on the website of the Company. All the Board members and Senior Management personnel have affirmed compliance with the code for the year ended 31 March 2015. A declaration to this effect signed by the Managing Director forms part of the Corporate Governance report.

28. MEMORANDUM AND ARTICLES OF ASSOCIATION:

The Company has adopted a new set of Memorandum and Articles of Association in accordance with the provisions of Companies Act 2013 in the Extra Ordinary General meeting held on 27th March 2015.

29. CORPORATE GOVERNANCE:

A separate report on the Corporate Governance and Management Discussion & Analysis is attached as a part of the annual report. The Auditors Certificate regarding Compliance of the conditions of Corporate Governance is also annexed hereto as Annexure IV which forms part of this report.

30. SECRETARIAL AUDIT:

Pursuant to the provisions of section 204 of the Companies Act, 2013 and Rules made thereunder the Company has appointed, ASA & Associates, Company Secretaries in Practice, to undertake the secretarial audit of the Company. Secretarial Audit Report for the year 2014-15 in the prescribed form MR-3 is annexed to this Report (ANNEXURE- V).

Pursuant to the provisions of Section 204 (3) and 134 (3) and rules made there under, the Board of Directors of Star Delta Transformers Limited provide the following clarification in respect to the observations raised by the Secretarial Auditor in Secretarial Audit report:

Company has always followed good secretarial practices and is in compliance with all the applicable provisions of various Acts, however being so vigilant, due to unavoidable technical reasons, Company missed some points of which Company has taken note of and will ensure compliances in the future.

Also, The Companies Act 2013, is newly incorporated, Company is endeavouring to comply with all the new concepts and provisions.

Company being fully conscious of the points raised by the Auditor assures compliance in the future.

31. AUDITORS and REPORT thereon:

The Auditors M/s. A.K. Khabya & Co, Chartered Accountants, (FR No. 001994C) retire at the ensuing Annual General Meeting and, being eligible, offer themselves for reappointment from the conclusion of this Annual General Meeting till the conclusion of next Annual General Meeting .

There are no qualifications or adverse remarks in the Auditors' Report which require any clarification/ explanation. The Notes on financial statements are self-explanatory, and needs no further explanation.

32. DIRECTORS' RESPONSIBILITY STATEMENT:

Pursuant to Section 134(5) of the Companies Act, 2013 the Board of Directors of the Company confirms that-

(a) In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

(b) 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;

(c) 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;

(d) The directors had prepared the annual accounts on a going concern basis; and

(e) The directors, had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.

(f) 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.

ACKNOWLEDGEMENT:

Your Directors wish to express their grateful appreciation to the continued co-operation received from the Banks, Government Authorities, Customers, Vendors and Shareholders during the year under review. Your Directors also wish to place on record their deep sense of appreciation for the committed service of the Executives, staff and Workers of the Company.

On behalf of Board of Directors

Place : Bhopal

Date : 13th August, 2015 (KISHORE GUPTA)

(DIN : 00014205)

MANAGING DIRECTOR


Mar 31, 2014

Dear members,

The directors present before you the 38th Annual Report of the Company together with the Audited Statement of Accounts for the year ending 31st March 2014.

1. FINANCIAL RESULTS AND OPERATION:

(Rupees in Thousands) 2013-2014 2012-2013

Sales and Other Income 665880 716596

Profit before Depreciation. 39499 56834

Depreciation 8626 6326

Profit before Tax 30873 50508

Provision for Tax 6200 10350

Deferred 00 6580

Net Profit after Tax 30585 34576

Profit brought forward from previous Year 2877 5055

Transfer to General Reserve 30000 35000

Income Tax Earlier year 267 752

Balance carried forward 2877 5056

Your Directors are happy to report that the result achieved by your Company for the year 2013 - 2014 are satisfactory.

2. OPERATION :

Your company has manufactured 958.973 MVA of transformers during the year 2013-14.

3. DIVIDEND :

Keeping in view the overall performance during the year, your directors are pleased to recommend a dividend of Rs. 0.50 per equity Share on the face value of Rs. 10/- each, being 5% dividend, payable to those members whose name appear in the Register of members as on the Book Closure Date.

4. FUTURE OUTLOOK :

The company foresees a great potential in Power Sector during coming years The company is already having huge orders for supply of distribution and Power Transformers. As such company expects to enhance sales & profit during the year 2014-2015.

5. FIXED DEPOSITS:

The Company has not invited / accepted / renewed any fixed deposits as per the provisions of Section 58 A of the Companies Act 1956 from the public during the year under review.

6. PARTICULAR OF EMPLOYEES:

There were no employees drawing salary more than the amount as provided under the provisions of Section 217 (2A) of the Companies Act, 1956, read with Companies (Particulars of Employees) Rules, 1975.

7. AUDITORS:

M/s A.K. KHABYA & CO., Chartered Accountants, the Statutory Auditor of the Company retires at the forthcoming Annual General Meeting and is eligible for re-appointment. The retiring Auditors, have furnished a certificate of their eligibility for re-appointment under Section 139(1) of the Companies Act, 2013 and have indicated their willingness to continue.

8. AUDTTORS'' REPORT:

The observation made in the Auditors'' Report read together with relevant notes thereon are self explanatory and hence do not call, any further comments under Section 217 of the Companies Act 1956.

9. DIRECTORS RESPONSIBILITY STATEMENT:

Pursuant to Section 217(2AA) of the companies (Amendment) Act, 2000 the Directors confirm that:

(i) In the preparation of the annual accounts, the applicable accounting Standards had been followed.

(ii) The directors has 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.

(iii) 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.

(iv) The directors have prepared the annual accounts on a going concern basis.

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

The statement of particulars with respect to conservation of energy, technology absorption and Foreign Exchange earnings and out go pursuant to provisions of section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988 is annexed hereto as annexure "A" which forms part of this Report .

11. REPORT ON CORPORATE GOVERNANCE:

A separate report on the Corporate Governance and Management Discussion & Analysis is attached as a part of the Annual Report. The Auditors'' Certificate regarding compliance of the conditions of Corporate Governance is also annexed hereto as annexure "B" which forms part of this Report.

12. COMPLIANCE CERTIFICATE:

The compliance certificate as required under section 383A of the Companies Act, 1956 has been obtained from Mr. S. M. Ashraf, Practicing Company Secretary and is form part of the Directors Report with Balance Sheet.

13. DIRECTORS:

In accordance with the provisions of the Companies Act, 1956 and Articles of Association of the Company, Shri Laxmendra Maheshwari, Independent Director, will retire by rotation and being eligible, offer himself for re-appointment.

14. ACKNOWLEDGEMENT:

Your Directors offer their sincere thanks for the co-operation of the members of the board, bankers, Government agencies and above all the valued employees.

For and on behalf of the Board

Place : Bhopal Sd/- Date : 30th May, 2014 (KISHORE GUPTA) (DIN : 00014205) CHAIRMAN & MANAGING DIRECTOR


Mar 31, 2013

To THE MEMBERS of STAR DELTA TRANSFORMERS LIMITED

BHOPAL

The directors present before you the 37th Annual Report of the Company together with the Audited Statement of Accounts for the year ending 31 st March, 2013.

1. FINANCIAL RESULTS AND OPERATION:

(Rupees in Thousands)

2012-2013 2011-2012

Sales and Other Income 716596 668594

Profit before Depreciation. 56834 55630

Depreciation 6326 3810

Profit before Tax 50508 51820

Provision for Tax 10350 17000

Deferred 6580 00

Net Profit after Tax 33578 34820

Profit brought forward from previous Year 5055 1756

Transfer to General Reserve 35000 30000

Income Tax Earlier year 752 -235

Balance carried forward 5056 1756

Your Directors are happy to report that the result achieved by your Company for the year 2012- 2013 are satisfactory.

2. OPERATION:

Your company has manufactured 1087.661 MVA of transformers during the year 2012-13 in comparison to 1023.082 MVA of last year.

3. LISTING OF EQUITY SHARES OF COMPANY ON BOMBAY STOCK EXCHANGE :

The Board is pleased to informe that the Company has received has received the listing permission from the Bombay Stock Exchange for trading of its shares on its stock exchange and the trading in equity shares begins w.e.f. 1.10.2012 on the Bombay Stock Exchange.

4. DIVIDEND :

Keeping in view the overall performance during the year, your directors are pleased to recommend a dividend of Rs. 0.50 per equity Share on the face value of Rs. 10/- each, being 5% dividend, payable to those members whose name appear in the Register of members as on the Book Closure Date.

5. FUTURE OUTLOOK:

The company foresees a great potential in Power Sector during coming years. The company is already having huge orders for supply of distribution and Power Transformers. As such company expects to enhance sales & profit during the year 2013-2014.

6. FIXED DEPOSITS :

The Company has not invited / accepted / renewed any fixed deposits as per the provisions of Section 58 A of the Companies Act 1956 from the public during the year under review.

7. PARTICULAR OF EMPLOYEES:

There were no employees drawing salary more than the amount as provided under the provisions of Section 217 (2A) of the Companies Act, 1956, read with Companies (Particulars of Employees) Rules, 1975.

8. AUDITORS:

M/s A.K.KHABYA & CO., Chartered Accountants, the Statutory Auditors of the Company retire at the forthcoming annual General Meeting and are eligible for re-appointment. The retiring Auditors, have furnished a certificate of their eligibility for re-appointment under Section 224 (1B) of the Companies Act, 1956 and have indicated their willingness to continue.

9. AUDITORS'' REPORT:

The observation made in the Auditors'' Report read together with relevant notes thereon are self explanatory and hence do not call, any further comments.

10. DIRECTORS RESPONSIBILITY STATEMENT:

Pursuant to Section 217(2AA) of the companies (Amendment) Act, 2000 the Directors confirm that:

(i) In the preparation of the annual accounts, the applicable accounting Standards had been followed.

(ii) The directors has 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.

(iii) 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.

(iv) The directors have prepared the annual accounts on a going concern basis.

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

The statement of particulars with respect to conservation of energy, technology absorption and Foreign Exchange earnings and out go pursuant to provisions of section 217(1 )(e) of the Companies Act, 1956 read with the Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988 is annexed hereto as annexure "A" which forms part of this Report.

12. REPORT ON CORPORATE GOVERNANCE:

A separate report on the Corporate Governance and Management Discussion & Analysis is attached as a part of the Annual Report. The Auditors'' Certificate regarding compliance of the conditions of Corporate Governance is also annexed

13. SECREATARIAL AUDIT REPORT:

The compliance certificate as required under section 383a of the companies act, 1956 has been obtained from Mr. Anish Gupta, practicing company secretary and is form part of the Balance Sheet.

14. DIRECTORS:

In accordance with the provisions of the Companies Act, 1956 and Articles of Association of the Company, Shri Rakesh Gupta will retire by rotation , and being eligible, offer himself for re-appointment.

15. AMALGAMATION BHOPAL WIRES WITH STAR DELTA:

The Board or Directors at their meeting held on 11th day of December, 2012, have subject to the approval of the Hon''ble High Court of Madhya Pradesh at Jabaipur, Shareholders, Stock Exchanges where the shares of the company are listed and other relevant regulatory authorities, approved the Scheme of Amalgamation Bhopal Wires N Private Limited with Star Delta Transformers Limited. The company is in the process of taking necessary approvals from various authorities including shareholders.

16. ACKNOWLEDGEMENT:

Your Directors offer their sincere thanks for the co-operation of the members of the board, bankers'' Government agencies and above all the valued employees.



For and on behalf of the Board

Place: Bhopal Sd/-

Date: 9th June, 2013 (KISHORE GUPTA)

CHAIRMAN & MANAGING DIRECTOR

 
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