Mar 31, 2016
To the Members,
The Directors have pleasure in submitting their 38th Annual Report of the Company together with the Audited Statements of Accounts for the year ended 31st March, 2016.
FINANCIAL RESULTS :
The Companyâs financial performance for the year ended March 31, 2016 along with previous year figure is summarized as here under: STAND ALONE (Rs. In Lacs)
Year ended 31st March, 2016 |
Year ended 31st March, 2015 |
|
Gross profit before Interest Depreciation and Tax |
85.42 |
668.55 |
Less: Interest and Depreciation |
224.17 |
225.03 |
Profit / (Loss) before Tax |
(138.75) |
443.52 |
Less: Provision for Taxation |
- |
159.50 |
Deferred Tax Assets |
(18.06) |
(44.55) |
Profit / (Loss) after Tax |
(120.69) |
328.57 |
Add: Balance brought forward from last year |
3841.95 |
3641.48 |
Profit available for appropriations |
3721.26 |
3970.05 |
Appropriations: |
- |
|
Adjustment Relating to fixed Asset |
- |
25.31 |
Proposed Dividend |
- |
52.17 |
Provision for Tax on Proposed Dividend |
- |
10.62 |
Transfer to General Reserve |
- |
40.00 |
Balance carried forwarded to next year |
3721.26 |
3841.95 |
REVIEW OF BUSINESS OPERATION AND FUTURE PROSPECTS :
The performance of the Company during the year under review is not fair as compared to the last year. This was mainly due to the decline in sales on export front. The total sales during the year were Rs. 7003.95 Lacs as against Rs. 9829.87 Lacs in the previous year. The sales on export front during the year under review were Rs. 2117.58 Lacs as compared to Rs 4934.76 Lacs in the previous year and thus thereby overall decline in the total sales. The sales on domestic front however increased marginally.
The Company has incurred net loss of Rs. 120.69 Lacs during the period under review as against the net profit of Rs. 328.58 Lacs in the last year. This was mainly due to the decline in export sale. The Company has also earned revenue to the tune of Rs. 95.08 Lacs as against Rs. 79.11 Lacs in the last year from the Wind Mill Project.
The Company continued to launch a number of new and higher value added products and undertook various cost effective measures to strengthen the Companyâs competitiveness and profitability in the future.
DIVIDEND :
In view of inadequacy of profit, your Directors regrets to recommend any dividend for financial year ended 31st March, 2016.
FIXED DEPOSITS :
The Company has not accepted any fixed deposits from the public falling within the ambit of Section 73 of the Companies Act, 2013 and The Companies (Acceptance of Deposits) Rules, 2014. There are no unclaimed deposits as on March 31, 2016.
SHARE CAPITAL :
The paid up Equity Share Capital of the Company as on March 31, 2016 was Rs 34778000/- During the year under review, the Company has not issued any shares with differential voting rights nor granted stock options nor sweat equity. Directorsâ shareholding in the Company, as on March 31, 2016, is given in Extract of Annual Return.
DIRECTORS AND KEY MANAGERIAL PERSONNEL :
In accordance with the provisions of the Companies Act, 2013 and the Articles of Association of the Company, Mr. J. R. Bhogayta, a Director retires by rotation at the forthcoming Annual General Meeting of the Company and being eligible, offers himself for re-appointment. The Board recommends his appointment for your approval.
The following are the Key Managerial Personnel as defined under Section 2(51) of the Companies Act, 2013:
- Mr. Narottam C Vadgama (Chairman and Executive Director)
- Mr. Rajan R Bambhania (Re-designated as MD and appointed as CEO w.e.f 8th June, 2016 )
- Mr. Jeshanker R Bhogayta (Executive Director)
- Mr. Siddik A Kotal (Chief Financial Officer)
- Ms. Nidhi D Parikh (Company Secretary)
NOTING OF CONDOLENCE AND APPRECIATION OF SERVICES :
The Board of Directors of the Company expresses their deep sense of condolences on untimely and sad demise of Mr. Shashikant M Thanki, the Managing Director of the Company. May his soul rest in heaven and pray to almighty to give courage to his family to bear such unbearable loss. The Board places on record its appreciation of guidance and valuable services provided by Mr. Shashikant M Thanki, during his long tenure as Managing Director of the Company.
The Board also places on record the appreciation of valuable services rendered by Ms. Arati Goswami during her tenure as director of the Company. She has resigned from the Board with effect from 8th June, 2016.
BOARD EVALUATION :
Pursuant to the provisions of the Companies Act, 2013 and Regulation 17 of SEBI (LODR) Regulations, 2015, the Board has carried out an annual performance evaluation of its own performance, the directors individually as well as the evaluation of the working of its Committees. The manner in which the evaluation has been carried out has been explained in the Corporate Governance Report
COMPOSITION OF VARIOUS COMMITTEES :
Details of various committees constituted by the Board as per the provisions of erstwhile Clause 49 of the Listing Agreement and SEBI (LODR) Regulations, 2015 and Companies Act, 2013 are given in the Corporate Governance Report which forms part of this report.
MEETINGS :
During the year Six Board Meetings, Four Audit Committee Meetings, One Nomination and Remuneration Committee Meeting, One Stakeholders Relationship Committee Meeting, One Risk Management Committee Meeting and One separate Meeting of Independent Directors were held. The details of the same are given in the Corporate Governance Report. The intervening gaps between the Board meetings were within the period prescribed under the Companies Act, 2013.
INDEPENDENT DIRECTORS :
The Independent Directors met on 20th April, 2015 without the attendance of Non-Independent Directors and members of the management. The Independent Directors reviewed the performance of Non-Independent Directors and Board as a whole and assessed the quality, quantity and timeliness of flow of information between the Company Management and the Board that is necessary for the Board to effectively and reasonably perform their duties.
The Company has received necessary declarations from each Independent Director under Section 149(7) of the Companies Act, 2013, that he/ she meets the criteria of independence laid down in Section 149(6) of the Companies Act, 2013 and Regulation 16(1 )(b) of SEBI (LODR) Regulations, 2015.
DIRECTOR DISCLOSURE :
None of the Directors of your Company is disqualified as per provisions of Section 164(2) of the companies Act, 2013. Your Directors have made necessary disclosures, as required under Companies Act, 2013.
DIRECTORS RESPONSIBILITY STATEMENT :
In accordance with the provisions of Section 134(5) of the Companies Act, 2013 the Board hereby submits its responsibility Statement as enumerated here under:
- In the preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures;
- The directors 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 at the end of the financial year and of the profit and loss of the Company for that period;
- The directors have 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;
- The directors have prepared the annual accounts on a going concern basis; and
- The directors have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.
- The directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
AUDITORS AND AUDITORSâ REPORT :
STATUTORY AUDITORS :
M/s. Dhirubhai Dand & Co., Chartered Accountants, Statutory Auditors were appointed for a period of three years at the Annual General Meeting held on 9th September, 2014 subject to ratification of their appointment at every year.
The Company has received a letter from them to the effect that their appointment, if made, would be within the prescribed limit under section 141 of the Companies Act, 2013 read with Rule 4(1) of the Companies (Audit & Auditors) Rules, 2014 and that they are not disqualified for reappointment. You are requested to ratify their appointment pursuant to the provisions of Section 139 of the Companies Act, 2013.
SECRETARIAL AUDITOR :
The Board has appointed Mr. K J SHAH of K J Shah & Company, Practicing Company Secretary, to conduct the Secretarial Audit for the financial year 2015-16. The Secretarial Audit Report for the financial year ended March 31, 2016 is annexed herewith marked as Annexure âB âto this Report. INTERNAL FINANCIAL CONTROLS :
The Company has a proper and adequate system of Internal Control commensurate with its size and the nature of its operations to ensure that all assets are safeguarded and protected against loss from un-authorized use or disposition and those transactions are authorized, recorded and reported correctly
The Board of Directors at the recommendations of the Audit Committee appointed M/s G K MODI & COMPANY, Chartered Accountants, Ahmedabad as Internal Auditors of the Company for the Financial Year 2015-16.
Internal Auditors monitors and evaluates the efficacy and adequacy of Internal Control System in the Company, its compliance with operating systems, accounting procedures, policies.
The Company has adequate internal financial controls with reference to financial statements. During the year, such controls were tested and no reportable material weakness in the design or operation was observed
DISCLOSURES :
AUDIT COMMITTEE :
Pursuant to Section 177 of the Companies Act, 2013 read with Rule 6 and 7 of the Companies (Meetings of the Board and its Powers) Rules, 2013, the Audit committee consists of the following directors:
Mr. B. D. Joshi, [Chairman of committee]
Mr. K. J. Mehta, [Member of committee]
Mr. D. B. Nakum, [Member of committee]
All the members of Audit Committee are independent directors.
WHISTLE BLOWER POLICY :
The Company has a WHISTLE BLOWER POLICY to deal with instances of unethical behaviour, actual or suspected fraud or violation of the companyâs code of conduct, if any. The details of the whistle blower policy is explained in the Corporate Governance Report and also posted on the website of the Company.
DIRECTORS APPOINTMENT AND REMUNERATIONS POLICY :
The Companyâs policy relating to appointment of directors, payment of managerial remuneration, directorsâ qualifications, positive attributes, independence of directors and other related matters as provided under Section 178(3) of the Companies Act, 2013 is furnished in Corporate Governance Report and the same is also posted on website.
RELATED PARTY TRANSACTIONS :
All contracts or arrangements with related parties, entered during the financial year were at armâs length basis and in the ordinary course of the Companyâs business. All related party transactions were placed before the Audit Committee and also the Board for their approval. The Company had also taken membersâ approval at its Annual General Meeting held on 9th September, 2014 and 22nd September, 2015 for entering into the transactions with âRelated partiesâ. No material contract or arrangement with related parties was entered into during the year under review. Therefore, there is no requirement to report any transaction in Form No. AOC-2 in terms of Section 134 of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014. The policy on Related Party Transactions as approved by the Board is uploaded on the Companyâs website at www.aec.com.
RISK MANAGEMENT POLICY :
The Board of Directors is overall responsible for identifying, evaluating and managing all significant risks faced by the Company. The Board approved Risk Management policy, which acts as an overarching statement of intent and establishes the guiding principles by which key risks are managed across the organization.
The Company follows well established and detailed risk assessment and minimization procedures, which are periodically reviewed by the top management. The Company has in place a business risk management framework for identifying risks and opportunities that may have a bearing on the organizationâs objectives, assessing them in terms of likelihood and magnitude of impact and determining a response strategy. In the opinion of the Board, none of the risks faced by the Company threaten its existence. The Company has also posted the policy in respect of transactions with âRelated Partiesâ on its website.
In view of non-applicability of Risk Management Committee to our Company, the Board decided to dissolve the same.
MATERIAL CHANGES AND COMMITMENTS :
No material changes and commitments affecting the financial position of the Company occurred between the end of financial year to which this financial statement relate and the date of this report.
ANNUAL RETURN :
The Extract of Annual Return pursuant to the provisions of Section 92 (3) of the Companies Act, 2013 read with Rule 12 (1) of the Company (Management and Administration) Rules, 2014 is furnished in Annexure âAâ â in form MGT-9 as per Companies Act, 2013 and it forms the part of this report.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS :
The particulars of Loans, guarantees or investments made under Section 186 and its applicability have been furnished in notes annexed to our financial statements.
QUALIFICATIONS AND RESERVATIONS ON AUDIT REPORT :
The Auditorâs Report and Secretarial Auditorâs Report are self explanatory and therefore do not require further comments and explanations. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO :
The information pertaining to conservation of energy, technology absorption, Foreign exchange Earnings and outgo as required under Section 134 (3)(m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is furnished in Annexure âCâ attached to this report and it forms the part of this report.
PARTICULARS OF EMPLOYEES AND REMUNERATIONS :
The information required pursuant to Section 197 of the Companies Act, 2013 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 in respect of employees of the Company, is annexed to this Report as Annexure âDâ, forming part of this Report. As per Section 136(1) of the Companies Act, 2013, the report and accounts are being sent to the shareholders of the Company, excluding the statement of particulars of employees under the said proviso. Any shareholder interested in obtaining a copy of the said statement may write to the Secretarial department at the Registered Office of the Company.
SUBSIDIARY COMPANY :
In accordance with the General Circular issued by the Ministry of Corporate Affairs, Government of India, the Balance Sheet, Profit and Loss account and other documents of M/s Accurate Engineering Inc., the subsidiary company, are not being attached with the Balance Sheet of the Company. The Company will make available the Annual Accounts of the said subsidiary company and its related detailed information to any member of the Company who may be interested in obtaining the same and also on Companyâs website.
The Annual Accounts of the subsidiary company will also be kept open for inspection at the registered office of the Company and the subsidiary company. A statement as required in the prescribed form AOC-1 pursuant to section 129(3) of the Companies Act, 2013 is given in the Annexure âEâ and it forms the part of this report.
CONSOLIDATED FINANCIAL STATEMENTS :
In accordance with the Accounting Standard AS-21, the audited consolidated financial statements are annexed to this Annual Report. CORPORTAE GOVERNANCE :
As per Chapter IV of SEBI (LODR) Regulations, 2015, separate reports on Corporate Governance, Management Discussion & Analysis and a certificate from the Companyâs Auditors form part of this Report. Your Company is committed to maintain the highest standards of Corporate Governance, reinforcing the valuable relationship between the Company and its Stakeholders.
INSURANCE :
The Company takes a very pragmatic approach towards insurance. Adequate cover has been taken for all movable and immovable assets for various types of risks.
SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS :
There are no significant material orders passed by the Regulators /Courts/ Tribunals which would impact the going concern status of the Company and its future operations.
FRAUDS REPORTING :
There was no instance of fraud during the year under review, which required the Statutory Auditors to report to the Audit Committee, Board and /or Central Government under Section 143(12) of the Companies Act, 2013 and Rules framed there under.
INDUSTRIAL RELATIONS :
The industrial relation with workmen and staff continued to be extremely cordial during the year under review.
ACKNOWLEDGMENT :
Your Directors wish to place on record their gratitude for the continued co-operation and patronage extended by their esteemed customers both in OEM and aftermarket segments. The Directors would also like to place on record their sincere appreciation for the continued co-operation, guidance, support and assistance during the year under report by our Bankers, all the customers, suppliers of the Company including Government agencies. The Board of Directors also wishes to express its appreciation for the efforts and contribution made by the employees at all levels during the year under report.
By Order of the Board of Directors
SD/-
Place : Patla, Junagadh N C Vadgama
Date : 30th May, 2016 Chairman
Mar 31, 2015
Dear Members,
The Directors have pleasure in submitting their 37th Annual Report of
the company together with the Audited Statements of Accounts for the
year ended 31st March, 2015.
FINANCIAL RESULTS
The Company's financial performance for the year ended March 31,2015
under review along with previous year figure is summarized as here
under:
STAND ALONE (Rs. In Lacs)
Year ended Year ended
31st March, 31st March,
2015 2014
Gross profit before 668.55 689.10
Interest Depreciation
and Tax
Less: Interest and 225.03 287.82
Depreciation
Profit before Tax 443.52 401.28
Less: Provision for 159.50 142.40
Taxation
Deferred Tax Assets (44.55) (48.37)
Profit after Tax 328.57 307.25
Add: Balance brought 3641.48 3435.25
forward from last year
Profit available for 3970.05 3742.50
appropriations
Appropriations:
Adjustment Relating to 25.31 0.00
fixed Asset
Proposed Dividend 52.17 52.17
Provision for Tax on 10.62 8.86
Proposed Dividend
Transfer to General 40.00 40.00
Reserve
Balance carried forwarded 3841.95 3641.47
to next year
REVIEW OF BUSINESS OPERATION AND FUTURE PROSPECTS :
The performance of the Company during the year under review remains
satisfactory looking to the economic situation as a whole. The sales of
the Company have increased both in domestic and export segment. The
sales during the year were Rs.9828.85 Lacs as against Rs. 8836.50 Lacs
in the previous year. The sales thus registered an increase of 11.23%
as compared to the last year.
The net profit of the Company has increased to Rs. 328.58 Lacs as
against Rs. 307.26 Lacs in the last year registering an increase of
increment of 6.94%. This was mainly attributed due to increase in sales
coupled with stringent measures adopted by the management towards cost
control. The Company has also earned revenue to the tune of Rs. 79.11
Lacs as against Rs. 82.35 Lacs in the last year from the Wind Mill
Project.
The Company continued to launch a number of new and higher value added
products and undertook various cost effective measures to strengthen
the Company's competitiveness and profitability in the future.
DIVIDEND :
Your Directors are pleased to recommend for your approval a dividend of
Rs. 1.50 (Tax Free) per Equity share of the Company in respect of the
financial year ended on 31st March, 2015. (Previous Year Rs. 1.50). The
said dividend shall be payable to those members whose names appear on
the register of member of the Company on record date.
FIXED DEPOSITS :
The Company has neither accepted nor renewed any deposits during the
year under review.
DIRECTORS RESPONSIBILITY STATEMENT :
In accordance with the provisions of Section 134(5) of the Companies
Act, 2013 the Board hereby submits its responsibility Statement as
enumerated here under:
* In the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures;
* The directors 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 at the end of the financial year and of the profit and loss
of the Company for that period;
* The directors have 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;
* The directors have prepared the annual accounts on a going concern
basis; and
* The directors have laid down internal financial controls to be
followed by the company and that such internal financial controls are
adequate and were operating effectively.
* The directors have devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
DIRECTORS AND KEY MANGERIAL PERSONNEL :
In accordance with the provisions of the Companies Act, 2013 and the
Articles of Association of the Company, Mr. Shashikant M Thanki and Mr.
Narottam C Vadgama Directors, retire by rotation at the ensuring Annual
General Meeting and being eligible offers themselves for re-
appointment.
In compliance of the requirements of Section 149(1) of the Companies
Act, 2013 read with clause 49 of the Listing Agreement, Ms. Arati
Goswami who was appointed as an additional Non Executive Woman Director
on the Board of the Company with effect from 30th March, 2015, vacates
the office as Director at this Annual General Meeting. The Company has
received notice under Section 160 of the "act" from a member proposing
her candidature for the office of Director of the Company liable to
retire by rotation.
The following are the Key Managerial Personnel as defined under Section
2(51) of the Companies Act, 2013:
* Mr. Narottam C Vadgama (Chairman and Executive Director)
* Mr. Shashikant M Thanki (Managing Director)
* Mr. Rajan R Bambhania (Joint Managing Director)
* Mr. Jeshanker R Bhogayta (Executive Director)
* Mr. Siddik A Kotal (Chief Financial Officer)
* Ms. Zalak M Talreja (Company Secretary)
AUDITORS AND AUDITORS' REPORT :
STATUTORY AUDITORS :
M/s. Dhirubhai Dand & Co., Chartered Accountants, the auditors of the
Company retires at the conclusion of this Annual General Meeting and
being eligible, offered themselves for re-appointment.
The Company has received a letter from them to the effect that their
reappointment, if made, would be within prescribed limit under Section
141 of the Companies Act, 2013 read with Rule 4(1) of the Companies
(Audit & Auditors) Rules, 2014 and that they are not disqualified for
reappointment.
SECRETARIAL AUDITOR :
The Board has appointed Mr. K.J.SHAH of K J Shah & Company, Practicing
Company Secretary, to conduct the Secretarial Audit for the financial
year 2014-15. The Secretarial Audit Report for the financial year ended
March 31, 2015 is annexed herewith marked as Annexure "C "to this
Report.
INTERNAL FINANCIAL CONTROLS :
The Company has adequate internal financial controls with reference to
financial statements. During the year, such controls were tested and no
reportable material weakness in the design or operation was observed
DISCLOSURES :
* AUDIT COMMITTEE :
The provisions of Section 177 of the Companies Act, 2013 read with Rule
6 and 7 of the Companies (Meetings of the Board and its Powers) Rules,
2013 is applicable to the Company.
The Audit committee consists of the following directors viz:
Mr. B. D. Joshi, [Chairman of committee]
Mr. K. J. Mehta, [Member of committee]
Mr. D. B. Nakum, [Member of committee]
All the members of Audit Committee are independent directors.
* WHISTLE BLOWER POLICY :
The Company has a WHISTLE BLOWER POLICY to deal with instances of
unethical behaviour, actual or suspected fraud or violation of the
company's code of conduct, if any. The details of the whistle blower
policy is explained in the Corporate Governance Report and also posted
on the website of the Company.
* DIRECTORS APPOINTMENT AND REMUNERATIONS POLICY :
The Company's policy relating to appointment of directors, payment of
managerial remuneration, directors' qualifications, positive
attributes, independence of directors and other related matters as
provided under Section 178(3) of the Companies Act, 2013 is furnished
in Corporate Governance Report and the same is also posted on website.
* RELATED PARTIES TRANSACTIONS POLICY :
All transactions entered into by the Company with "Related parties"
during the period under review were in the ordinary course of business
at prevailing market rate. The particulars of contracts or arrangements
made with related parties pursuant to Section 188 of the Companies Act,
2013 is furnished vide Annexure "A" in form AOC-2 as per Companies Act,
2013 and it forms the part of this report. The Company has also
posted the policy in respect of transactions with "Related Parties" on
its website.
All related party transactions were placed before the Audit Committee
and also the Board for approval. The Company had also taken members'
approval at its Annual General Meeting held on 9th September, 2014 for
entering into the transactions with "Related parties" for the period of
three years i.e. from 01/04/2014 to 31/03/2017.
RISK MANAGEMENT POLICY :
The Board of Directors is overall responsible for identifying,
evaluating and managing all significant risks faced by the Company. The
Board approved Risk Management policy, which acts as an overarching
statement of intent and establishes the guiding principles by which key
risks are managed across the organization.
The Board monitors and reviews the implementation of various aspects of
the Risk Management policy through a duly constituted Risk Management
Committee. The Risk Management Committee assists the Board in its
oversight of the Company's management of key risks, including strategic
and operational risks, as well as the guidelines, policies and
processes for monitoring and mitigating such risks under the aegis of
the overall business risk management framework.
The Company follows well established and detailed risk assessment and
minimization procedures, which are periodically reviewed by the Board.
The Company has in place a business risk management framework for
identifying risks and opportunities that may have a bearing on the
organization's objectives, assessing them in terms of likelihood and
magnitude of impact and determining a response strategy. In the opinion
of the Board, none of the risks faced by the Company threaten its
existence. The Company has also posted the policy in respect of
transactions with "Related Parties" on its website.
* MATERIAL CHANGES AND COMMITMENTS :
No material changes and commitments affecting the financial position of
the Company occurred between the end of financial year to which this
financial statement relate and the date of this report.
DECLARATION OF INDEPENDENT DIRECTORS :
The Company has received declarations from all the Independent
Directors of the Company confirming that they meet the criteria of
"Independence" as prescribed under the Companies Act, 2013 read with
clause 49 of the Listing Agreement. The Company has devised a policy
for performance evaluation of Independent Directors, Board, Committees
and other individual Directors which include criteria for performance
evaluation of the non- executive directors and executive directors. The
said details have been shown in corporate governance Report.
ANNUAL RETURN:
The Extract of Annual Return pursuant to the provisions of Section 92
(3) of the Companies Act, 2013 read with Rule 12 (1) of the Company
(Management and Administration) Rules, 2014 is furnished in Annexure
"B" " in form MGT-9 as per Companies Act, 2013 and it forms the part of
this report.
BOARD MEETINGS :
The Board of Directors duly met 6 (Six) times respectively on 27th May,
2014 (2 Times), 23rd July 2014, 18th October, 2014, 21st January, 2015
and 30th March, 2015 in respect of which meetings proper notices were
given and the proceedings were properly recorded and signed.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS :
The particulars of Loans, guarantees or investments made under Section
186 and its applicability have been furnished in notes annexed to our
financial statements.
QUALIFICATIONS AND RESERVATIONS ON AUDIT REPORT :
The Auditor's Report and Secretarial Auditor's Report are self
explanatory and therefore do not require further comments and
explanations.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO :
The information pertaining to conservation of energy, technology
absorption, Foreign exchange
Earnings and outgo as required under Section 134 (3)(m) of the
Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts)
Rules, 2014 is furnished in Annexure "D" attached to this report and it
forms the part of this report.
PARTICULARS OF EMPLOYEES :
The particulars of employees as required under Section 197(12) of the
Act read with Rule 5(1) of the Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014 is given in the Annexure "E"
appended hereto and it forms part of this Report. As per Section 136(1)
of the Companies Act, 2013, the report and accounts are being sent to
the shareholders of the Company, excluding the statement of particulars
of employees under the said proviso. Any shareholder interested in
obtaining a copy of the said statement may write to the Secretarial
department at the Registered Office of the Company.
SUBSIDIARY COMPANY :
In accordance with the General Circular issued by the Ministry of
Corporate Affairs, Government of India, the Balance Sheet, Profit and
Loss account and other documents of M/s Accurate Engineering Inc., the
subsidiary company, are not being attached with the Balance Sheet of
the Company. The Company will make available the Annual Accounts of
the said subsidiary company and its related detailed information to any
member of the Company who may be interested in obtaining the same and
also on Company's website.
The Annual Accounts of the subsidiary company will also be kept open
for inspection at the registered office of the Company and the
subsidiary company.
A statement as required in the prescribed form AOC-1 pursuant to
section 129(3) of the Companies Act, 2013 is given in the Annexure "F"
and it forms the part of this report.
CONSOLIDATED FINANCIAL STATEMENTS :
In accordance with the Accounting Standard (AS)-21, the audited
consolidated financial statements are annexed to this Annual Report.
CORPORATE GOVERNANCE REPORT :
The Company has recognized the highest standards of Corporate
Governance and adheres strictly to the said requirements as set out by
SEBI. The Report on Corporate Governance and a Certificate from the
Auditors of the Company regarding compliance of conditions of Corporate
Governance as stipulated under Clause 49 of the Listing Agreement is
annexed to this report. The Company has also implemented several best
corporate governance practices as prevalent globally. The report on
Corporate Governance as stipulated under the Listing Agreement forms an
integral part of this Report.
MANAGEMENT DISCUSSION AND ANALYSIS STATEMENT :
Management's Discussion and Analysis Report for the year under review,
as stipulated under Clause 49 of the Listing Agreement is presented in
separate section forming part of the Annual Report.
INDUSTRIAL RELATIONS :
The industrial relation with workmen and staff continued to be
extremely cordial during the year under review.
ACKNOWLEDGMENT :
Your Directors wish to place on record their gratitude for the
continued co-operation and patronage extended by their esteemed
customers both in OEM and after market segments. The Directors would
also like to place on record their sincere appreciation for the
continued co-operation, guidance, support and assistance during the
year under report by our Bankers, all the customers, suppliers of the
Company including Government agencies. The Board of Directors also
wishes to express its appreciation for the efforts and contribution
made by the employees at all levels during the year under report.
order of the Board of Directors
Sd/-
Place : Patla, Dist. Junagadh N C Vadgama
Date : 28th May, 2015 Chairman
Mar 31, 2014
Dear Members,
The Directors are pleased to present the 36th Annual Report together
with the Audited accounts for the year ended 31st March, 2014.
FINANCIAL RESULTS
The Company''s financial performance for the year ended March 31, 2014
is summarised below:
(Rs. In Lacs)
Year ended Year ended
31st March, 2014 31st March, 2013
Gross profit before Interest
Depreciation and Tax 689.10 704.14
Less: Interest and Depreciation 287.82 328.01
Profit before Tax 401.28 376.13
Less: Provision for Taxation 142.40 121.45
Deferred Tax Assets (48.37) (15.59)
Profit after Tax 307.25 270.27
Add: Balance brought forward
from last year 3435.25 3266.01
Profit available for
appropriations 3742.50 3536.28
Appropriations:
* Proposed Dividend 52.17 52.17
Provision for Tax on
Proposed Dividend 8.86 08.86
Transfer to General Reserve 40.00 40.00
Balance carried forwarded
to next year 3641.47 3435.25
OPERATING RESULTS :
The performance of the Company during the year under review remains
satisfactory looking to the economic situation as a whole. The sales of
the Company have increased both in domestic and export segment. The
sales during the year were Rs.8837 Lacs as against Rs. 8727 Lacs in the
previous year. The sales thus registered a negligible increase of 1.26%
as compared to the last year.
The net profit of the Company has increased to Rs. 307.26 Lacs as
against Rs. 270.28 Lacs in the last year registering an increase of
increment of 13.68%. This was mainly attributed due to reduction in
cost as compared to the negligible increase in the turnover of the
Company. The Company has also earned revenue to the tune of 82.35 Lacs
as against 77.44 Lacs in the last year from the Wind Mill Project.
The Company continued to launch a number of new and higher value added
products and undertook cost effective measures to strengthen the
Company''s competitiveness and profitability in the future.
DIVIDEND :
The Directors are pleased to recommend for your approval a dividend of
Rs. 1.50 (Tax Free) per Equity share of the Company in respect of the
financial year ended on 31st March, 2014. (Previous Year Rs. 1.50) The
said dividend shall be payable to those members whose names appear on
the Register of member of the Company on record date.
FIXED DEPOSITS :
There is no deposit outstanding/unpaid as at 31st March, 2014.
DIRECTORS :
Mr. B. D. Joshi and Mr. R. R. Bambhania, Directors, retire by rotation
at the ensuring Annual General Meeting and being eligible offers
themselves for re- appointment
DIRECTORS'' RESPONSIBILITY STATEMENT :
Pursuant to Section 217(2AA) of the Companies (Amendment) Act, 2000,
the Directors confirm that:
a) In the preparation of the annual accounts, the applicable accounting
standards have been followed.
b) Appropriate accounting policies have been selected and applied
prudent so as to give a true and fair view of the state of affairs of
the Company as at March 31, 2014 and of the profit of the company for
the year under review.
c) 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.
d) The annual accounts have been prepared on a going concern basis.
AUDITORS :
M/s. Dhirubhai Dand & Co., Chartered Accountants, the auditors of the
Company retires at the conclusion of the ensuing Annual General
Meeting. They are eligible for re-appointment and have furnished the
certificate to the effect that their appointment, if made, will be in
accordance with the limits specified under Section 141 (3)(g) of the
Companies Act, 2013 and they are not disqualified for reappointment.
COST AUDIT :
Mr. Kiran J Mehta, Ahmedabad, Cost Accountant has been appointed as
cost Auditor of the Company vide Board resolution dated 27th May, 2014
for the financial year 31st March, 2014. Necessary application was also
being submitted to the Ministry of Corporate Affairs for his
appointment as Cost Auditor for the said financial year.
COMPLIANCE CERTIFICATE :
The Company has obtained compliance certificate from M/s. K. J. SHAH &
COMPANY, Company Secretaries, Ahmedabad, under section 383 (A) of the
Companies Act, 1956 and a copy of such certificate is annexed to this
report.
PARTICULARS OF EMPLOYEES :
The particulars of employees as required under section 217(2-A) of the
Companies Act,1956, read with the Companies (Particulars of Employees)
Rules 1975 is given in the annexure appended hereto and forms part of
this Report. As per the provisions of Section 219 (1) (b) (iv) of the
Companies Act, 1956, the report and accounts are being sent to the
shareholders of the company, excluding the statement of particulars of
employees under Section 217(2A) of the Act. Any share holder interested
in obtaining a copy of the said statement may write to the Secretarial
department at the Registered Office of the Company
SUBSIDIARY COMPANY :
In accordance with the General Circular issued by the Ministry of
Corporate Affairs, Government of India, the Balance Sheet, Profit and
Loss account and other documents of M/s Accurate Engineering Inc., the
subsidiary company, are not being attached with the Balance Sheet of
the Company. The Company will make available the Annual Accounts of the
said subsidiary company and its related detailed information to any
member of the Company who may be interested in obtaining the same and
also on Company''s website.
The Annual Accounts of the subsidiary company will also be kept open
for inspection at the registered office of the Company and the
subsidiary company.
A statement as required under Section 212 of the Companies Act, 1956 is
annexed to this report.
CONSOLIDATED FINANCIAL STATEMENTS :
In accordance with the Accounting Standard (AS)-21, the audited
consolidated financial statements are annexed to this Annual Report.
AUDIT COMMITTEE :
The Audit committee consists of the following directors viz:
1. Mr. B. D. Joshi, Chairman of committee
2. Mr. K. J. Mehta, Member of committee
3. Mr. D. B. Nakum, Member of committee
All the members of Audit Committee are independent directors.
CORPORATE GOVERNANCE REPORT :
The Company has recognized the highest standards of Corporate
Governance and adheres strictly to the said requirements as set out by
SEBI. The Report on Corporate Governance and a Certificate from the
Auditors of the Company regarding compliance of conditions of Corporate
Governance as stipulated under Clause 49 of the Listing Agreement is
annexed to this report.
MANAGEMENT DISCUSSION AND ANALYSIS STATEMENT :
Management''s Discussion and Analysis Report for the year under review,
as stipulated under Clause 49 of the Listing Agreement is presented in
separate section forming part of the Annual Report.
INDUSTRIAL RELATIONS :
The industrial relation with workmen and staff continued to be
extremely cordial during the year under review.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO :
The particulars as prescribed under section 217(1)(e) of the Companies
Act, 1956 read with Companies (Disclosure of Particulars in the report
of Board of Directors) Rules 1988 are set out in an Annexure to this
Report.
ACKNOWLEDGMENT :
The Directors wish to place on record their gratitude for the continued
co-operation and patronage extended by their esteemed customers both in
OEM and after market segments. The Directors would also like to place
on record their sincere appreciation for the continued co-operation,
guidance, support and assistance during the year under report by our
Bankers, all the customers, suppliers of the Company including
Government agencies. The Board of Directors also wishes to express its
appreciation for the efforts and contribution made by the employees at
all levels during the year under report.
By order of the Board of Directors
Sd/-
Place : Patla, Dist. Junagadh N C Vadgama
Date : 27th May, 2014 Chairman
Mar 31, 2013
To the Members,
The Directors have pleasure in presenting the 35th Annual Report
together with the Audited accounts for the year ended 31st March, 2013.
FINANCIAL RESULTS (Rs. In Lacs)
Year ended Year ended
31st March, 2013 31st March, 2012
Gross profit before Interest
Depreciation and Tax 704.14 1227.25
Less: Interest and Depreciation 328.01 309.70
Profit before Tax 376.13 917.55
Less: Provision for Taxation 121.45 300.00
Deferred Tax Assets (15.59) (19.21)
Profit after Tax 270.27 636.76
Add: Balance brought forward from
last year 3266.01 2830.30
Profit available for appropriations 3536.28 3467.06
Appropriations:
- Proposed Dividend 52.17 86.95
- Provision for Tax on Proposed
Dividend 8.86 14.10
- Transfer to General Reserve 40.00 100.00
Balance carried forwarded to next
year 3435.25 3266.01
OPERATING RESULTS :
The performance of the company during the year remains fair looking to
the economic situation as a whole. The sales of the Company have
decreased both in domestic and export segment. The sales during the
year were Rs. 8727 Lacs as against Rs. 10214 Lacs in the previous year.
The sales thus registered a decrease of 14.56% as compared to the last
year.
The net profit of the Company has also decreased to Rs. 270 Lacs as
against Rs. 637 Lacs in the last year registering diminution of 57.61%
as compared to the last year. This was mainly due to decline in the
turnover of the Company. The Company has also earned revenue to the
tune of 77 Lacs as against 72 Lacs in the last year from the Wind Mill
Project.
The Company continued to launch a number of new and higher value added
products and undertook cost effective measures to strengthen the
Company''s competitiveness and profitability in the future.
DIVIDEND :
The Directors are pleased to recommend for your approval a dividend of
Rs. 1.50 (Tax Free) per Equity share of the Company in respect of the
financial year ended on 31st March, 2013. (Previous Year Rs. 2.50) The
said dividend shall be payable to those members whose names appear on
the Register of member of the company on record date.
FIXED DEPOSITS :
There is no deposit outstanding/unpaid as at 31st March, 2013.
DIRECTORS :
Mr. Bhavesh R. Sureja and Mr. Krishnakant J. Mehta, Directors, retire
by rotation at the ensuring Annual General Meeting and being eligible
offers themselves for re- appointment.
DIRECTORS'' RESPONSIBILITY STATEMENT :
Pursuant to Section 217(2AA) of the Companies (Amendment) Act, 2000
Directors confirm that:
a) In the preparation of the annual accounts, the applicable accounting
standards have been followed.
b) Appropriate accounting policies have been selected and applied
prudent so as to give a true and fair view of the state of affairs of
the Company as at March 31, 2013 and of the profit of the company for
the year under review.
c) 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.
d) The annual accounts have been prepared on a going concern basis.
AUDITORS :
M/s. Dhirubhai Dand & Co., Chartered Accountants, the auditors of the
Company retires at the conclusion of the ensuing Annual General
Meeting. They are eligible for re-appointment and have furnished the
certificate to the effect that their appointment, if made, will be in
accordance with the limits specified under Section 224(B) of the
Companies Act, 1956.
COST AUDIT :
As per the Government directives, the company''s cost record in respect
of Bearings for the financial year ended on 31st March, 2012 were being
audited by Ms. Ila Patel, Cost Auditor who were appointed by the Board
pursuant to the provisions of section 233B of the Companies Act, 1956
with necessary approval from the Central Government.
Mr. Kiran J Mehta, Ahmedabad, Cost Accountant has been appointed as
cost Auditor of the Company vide Board resolution dated 25th July 2012
for the financial year 31st March, 2013. Necessary application is also
being submitted to the Ministry of Corporate Affairs for his
appointment as Cost Auditor for the said financial year.
COMPLIANCE CERTIFICATE :
The Company has obtained compliance certificate from M/s. K. J. SHAH &
COMPANY, Company Secretaries, Ahmedabad, under section 383 (A) of the
Companies Act, 1956 and a copy of such certificate is annexed to this
report.
PARTICULARS OF EMPLOYEES :
The particulars of employees as required under section 217(2-A) of the
Companies Act,1956, read with the Companies (Particulars of Employees)
Rules 1975 is given in the annexure appended hereto and forms part of
this Report. As per the provisions of Section 219 (1) (b) (iv) of the
Companies Act, 1956, the report and accounts are being sent to the
shareholders of the company, excluding the statement of particulars of
employees under Section 217(2A) of the Act. Any share holder interested
in obtaining a copy of the said statement may write to the Secretarial
department at the Registered Office of the Company
SUBSIDIARY COMPANY :
In accordance with the General Circular issued by the Ministry of
Corporate Affairs, Government of India, the Balance Sheet, Profit and
Loss account and other documents of M/s Accurate Engineering Inc., the
subsidiary company, are not being attached with the Balance Sheet of
the Company. The Company will make available the Annual Accounts of the
said subsidiary company and its related detailed information to any
member of the Company who may be interested in obtaining the same and
also on Company''s website.
The Annual Accounts of the subsidiary company will also be kept open
for inspection at the registered office of the Company.
A statement as required under Section 212 of the Companies Act, 1956 is
annexed to this report.
CONSOLIDATED FINANCIAL STATEMENTS :
In accordance with the Accounting Standard (AS)-21, the audited
consolidated financial statements are annexed to this Annual Report.
AUDIT COMMITTEE :
The Audit committee consists of the following directors viz:
1. Mr. B. D. Joshi, Chairman of committee
2. Mr. K. J. Mehta, Member of committee
3. Mr. D. B. Nakum, Member of committee
All the members of Audit Committee are independent directors.
CORPORATE GOVERNANCE REPORT :
The Company has recognized the highest standards of Corporate
Governance and adheres strictly to the said requirements as set out by
SEBI. The Report on Corporate Governance and a Certificate from the
Auditors of the Company regarding compliance of conditions of Corporate
Governance as stipulated under Clause 49 of the Listing Agreement is
annexed to this report.
MANAGEMENT DISCUSSION AND ANALYSIS STATEMENT :
Management''s Discussion and Analysis Report for the year under review,
as stipulated under Clause 49 of the Listing Agreement is presented in
separate section forming part of the Annual Report.
INDUSTRIAL RELATIONS :
The industrial relation with workmen and staff continued to be
extremely cordial during the year under review.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO :
The particulars as prescribed under section 217(1)(e) of the Companies
Act, 1956 read with Companies (Disclosure of Particulars in the report
of Board of Directors) Rules 1988 are set out in an Annexure to this
Report.
ACKNOWLEDGMENT :
The Directors wish to place on record their gratitude for the continued
co-operation and patronage extended by their esteemed customers both in
OEM and after market segments. The Directors would also like to place
on record their sincere appreciation for the continued co- operation,
guidance, support and assistance during the year under report by our
Bankers, all the customers, suppliers of the Company including
Government agencies. The Board of Directors also wishes to express its
appreciation for the efforts and contribution made by the employees at
all levels during the year under report.
By order of the Board of Directors
Sd/-
N C Vadgama
Chairman
Place: Patla, Dist. Junagadh
Date: 30th May, 2013
Mar 31, 2012
The Directors have pleasure in presenting the 34th Annual Report
together with the Audited accounts for the year ended 31st March, 2012.
FINANCIAL RESULTS (Rs. In Lacs)
Year ended Year ended
31st March, 31st March,
2012 2011
Gross profit before Interest
Depreciation and Tax 1227 1032
Less: Interest and Depreciation 309 273
Profit before Tax 918 759
Add: MTM Gain on Derivatives
Contracts 0 26
For the ineffective hedge
Less: Provision for Taxation 300 253
Deferred Tax Assets (19) (20)
Profit after Tax. 637 552
Add: Balance brought forward
from last year 2830 2459
Profit available for appropriations 3467 3011
Appropriations:
- Proposed Dividend 87 87
- Provision for Tax on Proposed
Dividend 14 14
- Transfer to General Reserve 100 80
Balance carried forwarded to next
year 3266 2830
OPERATING RESULTS:
The performance of the Company during the year remains fair. The sales
of the Company have increased both in domestic and export segment. The
sales during the year were Rs. 10215 Lacs as against Rs. 8359 Lacs in
the previous year. The sales thus registered an increase of 22.20% as
compared to the last year.
The net profit of the Company has increased from Rs. 552 lacs to Rs.
637 lacs registering growth of 15.40% as compared to the last year.
The Company has earned revenue of Rs. 72 Lacs making profit before tax
to the tune of Rs 35 Lacs out of the Wind Mill Project.
The Company continued to launch a number of new and higher value added
products along with tightening cost factors, which will further
strengthen the Company's competitiveness and profitability in the
future.
DIVIDEND:
The Directors are pleased to recommend for your approval a dividend of
Rs. 2.50 (Tax Free) per Equity share of the Company in respect of the
financial year ended on 31st March, 2012. (Previous Year Rs.2.50) The
said dividend shall be payable to those members whose names appear on
the Register of member of the company on record date.
FIXED DEPOSITS:
There is no deposit outstanding/unpaid as at 31st March, 2012.
DIRECTORS:
Mr. Jeshanker R Bhogayta and Mr. Dipsing B Nakum, Directors, retire by
rotation at the ensuring Annual General Meeting and being eligible
offers themselves for re- appointment.
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to Section 217(2AA) of the Companies (Amendment) Act, 2000
Directors confirm that:
(a) In the preparation of the annual accounts, the applicable
accounting standards have been followed.
(b) Appropriate accounting policies have been selected and applied
prudent so as to give a true and fair view of the state of affairs of
the Company as at March 31, 2012 and of the profit of the company for
the year under review.
(c) 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.
(d) The annual accounts have been prepared on a going concern basis.
AUDITORS:
M/s. Dhirubhai Dand & Co., Chartered Accountants, the auditors of the
Company retires at the conclusion of the ensuing Annual General
Meeting. They are eligible for re-appointment and have furnished the
certificate to the effect that their appointment, if made, will be in
accordance with the limits specified under Section 224(B) of the
Companies Act, 1956.
COST AUDIT:
As per the Government directives, the company's cost record in respect
of Bearings for the financial year ended on 31st March, 2012 were being
audited by Ms. Ila Patel, Cost Auditor who were appointed by the Board
of Directors by its meeting held on 18th January, 2012 on
recommendation of Audit Committee pursuant to the provisions of section
233B of the Companies Act, 1956 in place of casual vacancy arised due
to the death of Mr. S B Parikh.
COMPLIANCE CERTIFICATE:
The Company has obtained compliance certificate from M/s. K.J. SHAH &
COMPANY, Company Secretaries, Ahmedabad, under section 383 (A) of the
Companies Act, 1956 and a copy of such certificate is annexed to this
report.
PARTICULARS OF EMPLOYEES:
The particulars of employees as required under section 217(2-A) of the
Companies Act, 1956, read with the Companies (Particulars of Employees)
Rules 1975 is given in the Annexure appended hereto and forms part of
this Report. As per the Provisions of Section 219 (1) (b) (iv) of the
Companies Act, 1956, the report and accounts are being sent to the
shareholders of the company, excluding the statement of particulars of
employees under Section 217(2A) of the Act. Any share holder interested
in obtaining a copy of the said statement may write to the Secretarial
department at the Registered Office of the Company
SUBSIDIARY COMPANY:
In accordance with the General Circular issued by the Ministry of
Corporate Affairs, Government of India, the Balance Sheet, Profit and
Loss account and other documents of M/s Accurate Engineering Inc., the
subsidiary company, are not being attached with the Balance Sheet of
the Company. The Company will make available the Annual Accounts of the
said subsidiary company and its related detailed information to any
member of the Company who may be interested in obtaining the same and
also on Company' website.
The Annual Accounts of the subsidiary company will also be kept open
for inspection at the registered office of the Company and the
subsidiary company.
A statement as required under Section 212 of the Companies Act, 1956 is
annexed to this report.
CONSOLIDATED FINANCIAL STATEMENTS:
In accordance with the Accounting Standard (AS)-21, the audited
consolidated financial statements are annexed to this Annual Report.
AUDIT COMMITTEE:
The Audit committee consists of the following directors viz:
1. Mr. B. D Joshi, Chairman of committee
2. Mr. K. J. Mehta, Members of committee
3. Mr. D. B. Nakum, Members of committee
All the members of Audit Committee are independent directors.
CORPORATE GOVERNANCE REPORT:
The Company has accepted the highest standards of Corporate Governance
and adheres strictly to the said requirements as set out by SEBI. The
Report on Corporate Governance and a Certificate from the Auditors of
the Company regarding compliance of conditions of Corporate Governance
as stipulated under Clause 49 of the Listing Agreement are annexed to
this report.
MANAGEMENT DISCUSSION AND ANALYSIS STATEMENT:
Management's Discussion and Analysis Report for the year under review,
as stipulated under Clause 49 of the Listing Agreement is presented in
separate section forming part of the Annual Report.
INDUSTRIAL RELATIONS:
The industrial relation with workmen and staff continued to be
extremely cordial during the year under review.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO:
The particulars as prescribed under section 217(1)(e) of the Companies
Act, 1956 read with Companies (Disclosure of Particulars in the report
of Board of Directors) Rules 1988 are set out in an Annexure to this
Report.
ACKNOWLEDGMENT:
The Directors wish to place on record their gratitude for the continued
co-operation and patronage extended by the esteemed customers both in
OEM and after market segments. The Directors would also like to place
on record their sincere appreciation for the continued co-operation,
guidance, support and assistance during the year under report by our
Bankers, all the customers, suppliers of the Company including
Government agencies. The Board of Directors also wishes to express its
appreciation for the efforts and contribution made by the employees at
all levels during the year under report.
By order of the Board of Directors
Sd/-
N C Vadgama
Chairman
Place: Patla, Dist. Junagadh
Date: 29th May, 2012
Mar 31, 2010
The Directors have pleasure in presenting the 32nd Annual Report with
the audited accounts of the Company for the year ended 31st March, 2010
Rs. In Lacs
FINANCIAL RESULTS Year ended Year ended
31st March 2010 31st March 2009
Gross profit before Interest
Depreciation and Tax 932.63 1529.52
Less: Interest and Depreciation 282.82 352.94
Profit before Tax 649.81 1176.58
MTM Losses (Gam) on Derivative
Contracts for ineffective hedge (275.90) 229.55
Less: Provision for Taxation 229.41 412.43
Fringe Benefit Tax - 10.50
Deferred Tax Assets (9.37) 10.06
Profit after Tax. 705.67 514.04
Add : Balance brought forward
from last year. 1893.60 1501.18
Profit available for appropriations 2599.27 2015.22
Appropriations :
- Proposed Dividend 52.17 52.67
- Provision for Tax on Proposed Dividend 08.10 08.95
- Transfer To General Reserve 80.00 60.00
Balance carried forwarded
to next year 2459.00 1893.60
OPERATING RESULTS :
The performance of the company during the year remains fair in spite of
the depressionary conditions in the world economy. The sales of the
Company have declined both in domestic and export segment. The sales
during the year were Rs. 6886.23 lacs as against Rs.8432.95 lacs in the
previous year. The net profit of the Company has however increased from
Rs. 514.05 lacs to Rs. 705.67 lacs registering an increase of 37.28 %
as compared to the last year. The Company has earned revenue of Rs.
73.95 lacs making net profit of Rs. 36.07 lacs out of the Wind Mill
Project.
The Company continued to launch a number of new and higher value added
products along with tightening cost factors, which will further
strengthen the Companys competitiveness and profitability in the
future.
DIVIDEND :
The Directors are pleased to recommend for approval of shareholders a
dividend of Rs. 1.50 (Tax Free) per Equity share of the Company in
respect of the financial year ended on 31st March, 2010. (Previous Year
Rs.1.50) The said dividend shall be payable to those members whose
names appear on the Register of member of the company on record date.
FIXED DEPOSITS : There is no deposit outstanding/unpaid as at 31st
March, 2010.
COMPLIANCE CERTIFICATE :
The company has obtained compliance certificate from M/s. K.J.SHAH &
COMPANY, Company secretaries, Ahmedabad, under section 383 (A) of the
Companies Act, 1956 and a copy of such certificate is annexed to this
report.
BUYBACK OF EQUITY SHARES :
The Board of Directors of the Company at their meeting ftefcf on 6th
January, 2009 had approved the Buyback of equity shares from the open
market through stock exchange, not exceeding 4,50,000 nos. of equity
shares of Rs. 10/- each fully paid up for an aggregate amount not
exceeding Rs. 2,92,50,000 at a price not exceeding Rs.65/- pre equity
share.
The Company had commenced the said buyback on 27th January, 2009 and
closed the same on 7th January 2010. During the same period, the
company had bought back 53,200 equity shares for the aggregate
consideration of Rs. 29,25,593.78 ( at an average of Rs. 54.99 per
share). The present paid up capita! of the company after
extinguishment of above shares is Rs. 3,47,78,000 divided in to
34,77,800 equity shares of Rs.10/- each.
DIRECTORS :
Dr. B. R. Sureja, a Director of the Company who retires by rotation at
the ensuing Annual General Meeting and being eligible offers himself
for reappointment.
Mr. K. J. Mehta, a Director of the Company who retires by rotation at
the ensujng Annual General Meeting and being eligible offers himself
for reappointment.
DIRECTORS RESPONSIBILITY STATEMENT :
Pursuant to Section 217(2AA) of the Companies (Amendment) Act, 2000
Directors confirm that:
(a) In the preparation of the annual accounts, the applicable
accounting standards have been followed.
(b) Appropriate accounting policies have been selected and applied
prudent so as to give a true and fair view of the state of affairs of
the Company as at March 31, 2010 and of the profit of the company for
the year under review.
(c) 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.
(d) The annual accounts have been prepared on a going concern basis.
AUDITORS :
M/s. Dhirubhai Dand & Co., Chartered Accountants, the auditors of the
Company retires at the conclusion of the ensuing Annual General
Meeting. They are eligible fgr re-appointment and have furnished the
certificate to the effect that their appointment, if made, will be in
accordance with the limits specified yrider Section 224(B) of the
Companies Act, 1956.
COST AUDIT :
As per the Government directives, the companys cost record in respect
of Bearings for the financial year ended on 31st March, 2010 were being
audited by M/s. S. B. Parikh & Company, Cost Auditor who were appointed
by the Board pursuant to the provisions of section 233B of the I
Companies Act, 1956 with necessary approval from the Central
Government.
PARTICULARS OF EMPLOYEES :
The particulars of employees as required under section 217(2-A) of the
Companies Act,1956, read with the Companies (Particulars of Employees)
Rules 1975 is given in the annexure appended hereto and forms part of
this Report. As per the Provisions of Section 219 (1) (b) (iv) of the
Companies Act, 1956, the report and accounts are being sent to the
shareholders of the company, excluding the statement of particulars of
employees under Section 217(2A) of the Act. Any share holder interested
in obtaining a copy of the said statement may write to the Secretarial
department at the Registered Office of the Company
SUBSIDIARY COMPANY:
Pursuant to section 212 of the Companies Act, 1956, the audited
statement of accounts for the year ended on 31st March, 2010 of
Accurate Engineering Inc. U.S.A., the wholly owned subsidiary together
with the report of the auditors, necessary audited attachments and also
the statement under section 212 of the Companies Act, 1956 are annexed
to this report.
As prescribed by Accounting Standard 21 of the Institute of Chartered
Accountants of India, the audited consolidated financial statements are
annexed to this report.
LISTING OF EQUITY SHARES :
The Companys equity shares are listed at Bombay Stock Exchange
Limited, Phiroze Jeejeebhoy Tower, Dalai Street, Mumbai 400 001
The Company has paid the annual listing fee of the said stock exchange
for the financial year 2010-2011.
AUDIT COMMITTEE :
The Audit committee consists of the following directors viz;
1. Mr. B. D .Joshi, Chairman of committee
2. Mr. K. J. Mehta, Members of committee
3. Mr. D. B. Nakum, Members of committee
All the members of Audit Committee are independent directors.
CORPORATE GOVERNANCE REPORT:
A separate section on Corporate Governance and a Certificate from the
Auditors of the Company regarding compliance of conditions of Corporate
Governance as stipulated under Clause 49 of the Listing Agreement with
the Stock Exchanges are annexed to this report.
MANAGEMENT DISCUSSION AND ANALYSIS STATEMENT :
A Report on Management Discussion and Analysis Statement is separately
annexed to this report.
INDUSTRIAL RELATIONS :
The industrial relation with workmen and staff continued to be
extremely cordial during the year under review.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO :
The particulars as prescribed under section 217(1 )(e) of the Companies
Act, 1956 read with Companies (Disclosure of Particulars in the report
of Board of Directors) Rules 1988 are set out in an Annexure to this
Report.
ACKNOWLEDGMENT :
The Directors wish to place on record their gratitude for the continued
co-operation and patronage extended by the esteemed customers both in
OEM and after market segments. The Directors would also like to place
on record their sincere appreciation for the continued co- operation,
guidance, support and assistance during the year under report by our
Bankers, all the customers, suppliers of the Company including
Government agencies. The Board of Directors also wishes to express its
appreciation for the efforts and contribution made by the employees at
all levels during the year under report.
On behalf of the Board of Directors
Place : Patla, Dist.Junagadh N C VADGAMA
Date : 29th May, 2010 Chairman