Mar 31, 2014
The Members,
Accurate Transformers Limited
The Directors have pleasure in presenting their TWENTY SIXTH ANNUAL
REPORT on the statement of Accounts of your Company for the financial
year ended on 31st March, 2014.
Particular 2013-2014 2012-2013
Sales & Others Income 20,121.13 20,027.61
Profit before interest, 3,599.70 3,052.59
Depreciation & Tax
Less : Financial charges 3,406.23 2,846.19
Depreciation 77.00 93.99
Profit before Tax 116.46 112.41
Less : Provision for Tax 34.94 50.52
(Current)
Add : Provision for Tax (3.76) (0.49)
(Deferred)
Profit after Tax 85.29 (16.79)
Add : Balance brought forward 5,144.19 5,160.98
Profit available for 5,229.48 5,144.19
appropriation
Operations
During the year under consideration, your Company achieved a turnover
of Rs 20121.13 Lakhs as against Rs. 20027.61 Lakhs for the previous
year. The net Profit after tax at Rs 85,28,891 which is substantially
higher as compared to the loss of previous year by Rs. 16,79,132.
Lower Net profit is on account of higher material cost as well as oil
prices. Higher interest rate has also resulted in payment of higher
financial charges during the year.
Your Company is taking proactive steps to reduce material cost and also
interest burden.
We have many opportunities in our Industry. Your Company is finalizing
necessary funds arrangement through preferential issue of Equity Shares
to selected investors, borrowing from Banks and/or Financial
Institutions to fund our expansion process and also to meet long term
working capital requirements.
Future Growth Prospects
India''s power market is the fifth largest in the World. The power
sector is high on Government of India''s priority as it offers
tremendous potential for Power Equipment supplier Companies based on
the sheer size of the market and the returns available on invested
capital.
Dividend
With a view to conserve the resources of the Company, the Directors
regret their inability to declare dividend for the year ended on
31.03.2014. The accumulated profit is being carried forward in the
Profit & Loss Account.
Fixed Deposit
During the year under review the Company has not accepted any fixed
deposits from the Public. There are no unclaimed mature deposits lying
with the Company.
Director
After the introduction of new Companies Act 2013 and the amended
listing agreement, the independent Directors of the Company are not
liable to retire by rotation. However they shall not hold office for
more than 5 years. Therefore Mr. C. L. Sharma, Managing Director of the
Company is Liable to retire by rotation and eligible for reappointment.
A brief resume of all the Directors proposed for
appointment/reappointment at the Annual General Meeting, as required by
Clause 49 of Listing Agreement with Stock Exchanges is enclosed
herewith as a part of Corporate Governance report.
Pursuant to the requirement under section 217(2AA) of Companies Act
1956 with respect to Directors'' Responsibility Statement, it is hereby
confirmed:
i. That in the preparation of the accounts for the financial year ended
31st March, 2014; the applicable accounting standards have been
followed along with proper explanation relating to material departures;
ii. That the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that were
reasonable and prudent so as to give a true and fair view of the
statements of affairs of the Company at the end of the financial year.
iii. That the Directors have taken proper and sufficient care 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;
iv. That the Directors have prepared the accounts for the financial
year ended 31st March, 2014 ''
on a going concern basis.
Auditors and Their Report
M/s OM Prakash Yadav & Company, Chartered Accountants, Chartered
Accountants, the Statutory Auditors of the Company will retire at the
end of the ensuing Annual General Meeting and being eligible, offer
them for re-appointment.
The report of the Auditors on the accounts of your Company for the
period under report is appended elsewhere with this report. The
observations made by them in their report, however, are
self-explanatory and do not call for any further comments under Section
134 of the Companies Act, 2013.
Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
The requisite information in regard to conservation of energy,
technology absorption, foreign exchange earnings and outgo in terms of
Section 217(1)(e) of Companies Act, 1956 read with
Companies(Disclosures in particulars in the reports of boards of
Directors) Rules,1988 is set out in Annexure A annexed hereto which
forms part of this report.
Particulars of Employees
There are no employees in the Company who are taking salary in excess
of the provisions of section 217 (2A) of the Companies Act, 1956 read
with Companies (particulars of Employees) rules, 1975.
Compliance of the Listing Agreements
During the year under review the Company has made compliances with the
Listing Agreement with the Stock Exchanges. The Cash flow statement is
annexed with the report and detail of Stock Exchanges where the shares
of the Company are listed is given in Annexure B.
Industrial Relations
Industrial relations between employees and Management have remained
very cordial during the period under report.
Acknowledgement
Your Directors wish to place on record their appreciation for dedicated
efforts and contributions made by all the employees of the Company
during the year. Your Directors would also like to express their
sincere gratitude for the valuable assistance, advice and support
extended by the Government of India, State Governments, Financial
Institutions and Stock Exchanges. The Directors would also like to
thank the Share holders, Customers, Suppliers and Banks for the support
they have given to the Company and the confidence they have reposed in
the Management.
On behalf of the Board of Directors
Sd/-
Place: Delhi C. L. Sharma
Dated: 1st September, 2014 Chairman & Managing Director
Mar 31, 2013
To, The Members of Accurate Transformers Limited
The Directors have pleasure in presenting theirTWENTY FIFTH ANNUAL
REPORT on the statement of Accounts of your Company forthefinancial
year ended on 31 st March, 2013.
Particulars 2012-2013 2011-2012
Sales & Others Income 19866.65 24901.85
Profit before interest, Depreciation & Tax 3052.59 2687.44
Less: Financial charges 2846.19 2165.58
Depreciation 93.99 100.82
Profit before Tax 112.41 421.04
Less: Provision for Tax (Current) (-) 50.52 (-) 125.00
Provision for tax lastyear (-)79.17
Add: Provision forTax (Deferred) ( )0.49 ( ) 28.42
Profit afterTax (-)16.79 324.46
Add: Balance brought forward 4986.85 4662.39
Profit available for appropriation 4970.06 4986.85
Appropriations
1. General Reserve
2. Surplus carried to Balance Sheet 4970.06 4986.85
4970.06 4986.85
Operation
During the year under consideration, your Company achieved a turnover
of Rs. 19866.65 lakhs as against Rs. 24901.85 lakhs for the previous
year. The company has incurred a loss of Rs. 16.79 lakhs lower as
compared to the net profit in the previous year of Rs. 324.46 lakhs.
The loss suffered is on account difficult economic conditions
prevailing in the country coupled with of higher material cost as well
as oil prices. Higher interest rate has also resulted in payment of
higher financial charges during the year thereby adversely affecting
the operations. Your Company is taking proactive steps to reduce the
input cost and also interest burden.
During the year under review the Company has successfully developed a
prototype Power Transformer of 160 MVA, 220 KV class. It was type
tested at Government Test Laboratory i.e National Test House,
Ghaziabad. It has been delivered and successfully commissioned in
November 2011 at power utility of UP Power Transmission Corporation
Ltd.atNoida(U.P).
Your company has surplus land and is exploring the possibilities of
setting up facilities to manufacture 160 MVA, 220 KV Class Power
Transformers. To finance the setting up of the same your Company is
exploring the opportunities of raising funds though different
opportunities available and is looking at the possibilities of issue of
Equity Shares to existing Equity Shareholders of the Company on Rights
basis, Preferential issue to select investors, Follow on Public Issue,
Borrowing from Banks and/or Financials Institutions to set up necessary
Factory Shed, Plant and Machinery, Testing Equipments etc. and also to
meet long term working capital requirements. Funding plans shall be
finalized by your Board keeping in view the larger interest of the
company
Your Company is also taking steps for in house development and
manufacture of higher capacity Power Transformers i.e of 315 MVA400 KV
Class.
Higher Capacity Power Transformers has higher profit margins thereby
leading the Company to better profitability after commissioning of the
aforesaid project.
Dividend
In view of the loss suffered by the Company, the Directors regret their
inability to declare dividend forthe year ended on 31.03.2013.
Future Growth Prospects
India''s power market is the fifth largest in the World. Total installed
capacity for Power Generation in the Country as on 31 -03-2013 is
2,23,793.10 MW. The power sector is high on Government of India''s
priority as it offers tremendous potential for Power Equipment supplier
Companies based on the sheer size of the market and the returns
available on invested capital.
Directors Responsibility Statement
Pursuant to the requirement under Section 217 (2AA) of the Companies
Act, 1956, with respect to Directors''Responsibility Statement, it is
hereby confirmed:
i, That in the preparation of the accounts for the financial year ended
31st March, 2013; the applicable accounting standards have been
followed along with proper explanations relating to material
departures;
ii. That the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that were
reasonable and prudent so as to give a true and fair view of the
statements of affairs of the Company at the end of the financial year.
iii. That the Directors have taken proper and sufficient care 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;
iv That the Directors have prepared the accounts for the financial year
ended 31st March, 2013''on a going concern basis.
Auditors and their report
M/s S. Lai & Company, Chartered Accountants, the Statutory Auditors of
the Company will retire at the end of the ensuing Annual General
Meeting and being eligible, offer themselves for re-appointment.
Salary, Perquisites and Performance commission payable to
Managing/Whole Time Director as per Section 198 and 309 of the
Companies Act, 1956 is restricted to 10% of the Net Profit as
calculated as per provisions Sections 349 of the Companies Act, 1956.
Auditors have pointed out in notes on account (Refer Note No. 7 of
Schedule 26 appended with audited accounts) that Salary, Perquisites
and Performance commission was paid in excess to limits specified
herein above to Managing/Whole Time Director. Necessary application is
being filed before the Central Government for obtaining post facto
approval forexcess remuneration paid to them.
The report of the Auditors on the accounts of your Company for the
period under report is appended elsewhere with this report. The
observations made by them in their report, however, are
self-explanatory (except for Managerial Remuneration as stated herein
above) and do not call forany further comments under Section 217 of the
Companies Act, 1956.
Fixed Deposits
Your Company has not accepted any deposit during the year under review.
Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings and Outgo
The requisite information In regard to conservation of energy,
technology absorption, foreign exchange earnings and outgo in terms of
Section 217 (1) (e) of Companies Act, 1956 read with Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988 is set out in Annexure A annexed hereto which forms part of this
report.
Particulars of Employees
There were no employee who were drawing remuneration in excess of the
provisions of section 217 (2A) of the Companies Act, 1956 read with
Companies (particulars of Employees) rules,1975.
Compliance of the Listing Agreements
During the year under review the Company has made compliances with the
Listing Agreement with the Stock Exchanges. The Cash flow statement is
annexed with the report and detail of Stock Exchanges where the shares
of the Company are listed is given inAnnexureB.
Industrial Relations
Industrial relations between employees and Management have remained
very cordial during the period under report.
Acknowledgement
Your Directors wish to place on record their appreciation for dedicated
efforts and contributions made by all the employees of the Company
during the year. Your Directors would also like to express their
sincere gratitude for the valuable assistance, advice and support
extended by the Government of India, State Governments, Financial
Institutions and Stock Exchanges. The Directors would also like to
thank the Share holders, Customers, Suppliers and Banks for the support
they have given to the Company and the confidence they have reposed in
the Management.
On behalf of the Board of Directors
Place:Delhi C. L.Sharma
Dated : 5th September, 2013 Chairman & Managing Director
Mar 31, 2010
The Directors have pleasure in presenting their TWENTY SECOND ANNUAL
REPORT on the Statement of Accounts of your company for the financial
year ended 31st March2010
(Rs. In Lakhs)
Financial Results Current Year Previous Year
(2009-2010) (2008-2009)
Sales & Other Income 19,124.85 18,470.38
Profit before interest,
Depreciation & Tax 2,255.69 2,131.66
Less: Financial Charges 1,332.50 1,230.56
Depreciation 111.58 95.56
Profit before Tax 811.61 805.53
Less Provision for Tax
(Current) 205.00 92.00
(Deferred) (15.07) 4.93
(Previous Year) 0.52 1.43
(Fringe Benefits Tax) - 12.65
Profit after Tax 621.16 694.52
Add Balance brought forward 3,444.18 2,749.66
Profit available for appropriation 4,065.34 3,444.18
Appropriations
1. General Reserve - -
2. Surplus carried to Balance Sheet 4,065.34 3,444.18
4,065.34 3,444.18
Operation
During the year under consideration, your company achieved a turnover
of Rs. 19,124.85 lakhs as against Rs. 18,470.38 lakhs for the previous
year. The net Profit after tax at Rs. 621.16 lakhs which is little
lower as compared to the Previous year by Rs. 694.52 lakhs. Your
company accordingly has registered an increase of Rs. 655.47 lakhs in
turnover and a slight decrease of Rs. 73.36 lakhs in net profit during
the Financial Year 2009-2010 due to increased competition and
recessionary market.
The decrease in the net profit is on account of recessionary conditions
prevailed during the year under review.
The major customer of Companys product are State Electricity Boards /
Govt. Sectors. With the growth in industrial sector and power
equipment sector and with a view to diversify its marketing strategy
the company has supplied a small quantity of transformers to private
sector.to private sector and public sector undertakings also. The
Company is making efforts to enlarge its customer base of private
Sector enterprises.
At present, the Company is manufacturing Power Transformers upto 40 MVA
capacity. There is tremendous scope of growth and better profitability
in higher capacity Power Transformers. Keeping the same in mind, your
company has planned for manufacture of Transformers of 160 MVA capacity
in near future.
Dividend
With a view to conserve the resources of the Company, the Directors
regret their inability to declare dividend for the year ended on
31.03.2010. The accumulated profit is being carried forward in the
Profit & Loss Account.
Future Growth Prospects
With huge demand for power evacuation from large generating stations
and strengthening of the inter-regional transmission grid, the
transmission and distribution (T&D) utilities are the major end users
of transformers in India. The Indian economy is witnessing a
restoration and so is the electrical industry and its various segments
including the transformer industry.
High demand arising from the energy intensive oil and gas, and cement
segments has buoyed prospects for the Indian transformer market.
Developments in the power sector will have huge ramifications for the
Indian transformer industry.
The Government of India is encouraging investments at the T&D level to
increase access to reliable power supply and reduce technical and
commercial losses in the system through schemes such as Revised
Accelerated Power Development and Reform Program (R-APDRP) and Rajiv
Gandhi Grameen Vidyutikaran Yojana (RGGVY)
The objective of Govt "Power for all by 2012" has added impetus to
growth of power equipment manufactures. Govt, has planned an ambitious
target of additional power generation capacity of 80,000 MW in 11th
Five year plan leading to very bright future for all power equipment
manufactures. As our company is dominant supplier to almost all state
electricity boards of the country thus see a bright future ahead. Your
company was manufacturing transformers upto 50 MVA capacity and with
the rich experience of last 20 years is planning will have the benefit
of overall growth of power sector and addition in the manufacture of
transformers upto 160 MVA.
Directors
The Board of Directors appointed Shri Subhash Chandra Sharma as an
Additional Director w.e.f. 3rd September 2010, in its meeting held on
3rd September, 2010. He holds the office until the ensuing Annual
General Meeting. Notice has been received from a Member under Section
257 of the Companies Act, 1956 proposing his name for appointment as a
Director of the Company liable to retire by rotation
Shri K.L. Chauhan, Director retires by rotation at the ensuing Annual
General Meeting & being eligible offers himself for re-appointment.
Shri M.K. Basak, Whole Time Director has resigned from the directorship
w.e.f. 30th September, 2009. The Board of Directors places on records
the appreciation of services rendered by Shri m.K. Basak during his
tenure
Dr. Om Prakash Sharma, Director has resigned from the directorship
w.e.f. 3rd September, 2010. The Board of Directors places on records
the appreciation of services rendered by Dr. Om Prakash Sharma during
his tenure.
Directors Responsibility Statement
Pursuant to the requirement under Section 217 (2AA) of the Companies
Act, 1956, with respect to Directors Responsibility Statement, it is
hereby confirmed:
i. That in the preparation of the accounts for the financial year ended
31st March, 2010, the applicable accounting standards have been
followed along with proper explanation relating to material departures;
ii. That the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that were
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 or loss of the company for the year under review;
iii. That the Directors have taken proper and sufficient care 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;
iv. That the Directors have prepared the accounts for the financial
year ended 31st March, 2010 on a going concern basis.
Auditors and their Report
M/s S. Lai & Company, Chartered Accountants, the Statutory Auditors of
the Company will retire at the end of the ensuing Annual General
Meeting and being eligible offer themselves for re-appointment.
The report of the Auditors on the account of your company for the
period under report is appended elsewhere with this report. The
observations made by them in their report, however, are
self-explanatory and do not call for any further comments under Section
217 of the Companies Act, 1956.
Fixed Deposits
Your company has not accepted any deposit during F.Y. 2009-2010.
Conservation of Energy, Technology Absorption, Foreign exchange
Earnings and Outgo.
The requisite information in regard to conservation of energy,
technology absorption, foreign exchange earnings and outgo in terms of
Section 217 (1) (e) of Companies Act, 1956 read with Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988 is set out in Annexure A annexed hereto which forms part of this
report.
Compliance of the Listing Agreements
During the year under review the Company has made compliances with the
Listing Agreement with the Stock Exchanges. The Cash flow statement is
annexed with the report and detail of Stock Exchanges where the shares
of the company are listed is given in Annexure B.
Industrial Relations
Industrial relations between employees and Management have remained
very cordial during the period under report.
Acknowledgement
Your Directors wish to place on record their appreciation for dedicated
efforts and contributions made by all the employees of the company
during the year. Your Directors would also like to express their
sincere gratitude for the valuable assistance, advice and support
extended by the Government of India, state Governments, Financial
Institutions and Stock Exchanges. The Directors would also like to
thank the share holders, customers, suppliers and banks for the support
they have given to the company and the confidence they have reposed in
the Management.
On behalf of the Board of Directors
Place : Delhi C. L. SHARMA
Dated : 3rd September, 2010 Chairman & Managing Director