Directors Report of Beckons Industries Ltd.

Mar 31, 2014

To The Members

The Directors are glad to present the 22nd Annual Report together with the Audited Financial Statements of the Company for the year ended March 31, 2014.

FINANCIAL HIGHLIGHTS

(Rs. in lacs) PARTICULARS COMPANY CONSOLIDATED 31.03.2014 31.03.2013 31.03.2014 31.03.2013

Gross Income 103.60 451.76 103.60 1159.00

Total Expenditure 163.46 530.53 163.46 1237.78

Depreciation 12.04 13.09 12.04 13.09

Net Profit/(Loss) before taxes (71.90) (91.86) (71.90) (91.87)

Add Deferment tax liability 4.18 (14.75) 4.18 (14.75)

Provision for Income Tax - - - -

Net Profit/(Loss) after tax. (67.72) (106.61) (67.72) (106.62)

REVIEW OF BUSINESS OPERATIONS

During the financial year under review, the company faced tough competition in marketing its products. The printing and stationary business being traditional could not even generate the revenue for meeting its operation/ running costs had to be closed but continuing with the trading and supply of the stationery to some of the existing customers to recover the previous payments.

The statics given above shows that the company''s total turnover and other income is Rs. 103.60 lacs against an expenditure of Rs. 175.50 lacs. Due to the above factor there has been a total loss amounting Rs 67.72 lacs as per Balance Sheet.

FUTURE PROSPECTS

As required under the Corporate Governance, the Management Discussion and Analysis, forming part of this report, reflects the current status of affairs of the business.

NATURE OF BUSINESS

There has been no change in the nature of business of the company during the year.

SEGMENT REPORTING

Pursuant to the requirement of Accounting Standard 17 issued by the Institute of Chartered Accountants of India is reported that besides, trading of Computer paper. The company had developed the technology Micro Algae for Fuel, Feed & Mitigation of Fuel gases and looking for the suitable manufacturer for the transfer of the technology on commercial basis. The company is engaged in trading business through its subsidiary company in UAE.

SHARE CAPITAL

The Authorised Share Capital of the company consists of Rs. 80,00,00,000/- divided into 8,00,00,000 equity shares of Rs. 10/- each. The Issued, Subscribed & Paid up Capital is Rs. 78,44,90,950/- divided into 7,84,49,095 equity shares of Rs. 10/- each.

CORPORATE GOVERNANCE

A separate section on Corporate Governance forming part of the Director''s Report and the certificate from the Practising Company Secretary confirming compliance of Corporate Governance norms as stipulated in Clause 49 of the Listing Agreement with the Indian Stock Exchanges is included in the Annual Report as Annexure- A.

DIRECTORS

In terms of the Articles of the Association of the Company, Mr.Deepak Kumar retires by rotation at the ensuing Annual General Meeting and he being eligible offered himself for the Re-appointment.

In terms of the Articles of the Association of the Company, Mr.Rana Watts retires by rotation at the ensuing Annual General Meeting and he being eligible offered himself for the Re-appointment.

The Board appointed Mrs Rani Mondal as a woman director pursuant to the provisions of Section 149(1) of the Companies act, 2013 and Clause 49of the Listing agreement The Company has received requisite notice in writing proposing Mrs Rani Mondal as a Woman director.

The Company has received declarations from all the Independent Directors of the Company confirming that they meet with the Criteria of Independence as prescribed both under Sub section (6) of Section 149 of the Companies act, 2013 and under Clause 49 of the listing Agreement with the Stock Exchanges.

DIRECTOR''S RESPONSIBILITY STATEMENT

Pursuant to the provisions of sub section (2AA) of section 217 of the Companies Act, the directors confirm that:

i. In the preparation of annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures.

ii. The Directors have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period.

iii. 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.

iv The annual accounts have been prepared on a going concern basis.

v. Initiatives taken by the Company

The company could reach at the pre commercial stage for its already developed algae technology and it is expected that with the collaboration of financial partner or bank funding support, the project in hand could take off with little although late but in near future. Once the basic bottlenecks are removed.

The Company is also exploring various opportunities and alternatives for business arrangement with other companies for growth of the Company including by way of mergers and takeovers.

The initial promoters of the company retired from active management after company obtained shareholders consent through special resolution on 07.03.2011. Thereafter a court case was filed by existing management, who alleged there in that outgoing directors/ promoters are still representing themselves as promoters and are interfering in the management of the company in spite of the undertaking given by new management to take full responsibilities of all past, present and future liabilities of the company.The honourable Court of, Civil Judge (Sr. Division), SAS Nagar (Mohali), passed the orders on 31.05.2013 there by restricting permanently the previous management from interfering in day to day business affairs of the company as well from representing themselves as the promoters of the company.

DIVIDEND

In the wake of loss, your Board of Director''s did not recommend the payment of Dividend for the financial year ended 31st march, 2014.

DEPOSITS

The company has not accepted any deposits from public during the year under review.

LISTING

The Shares of the company are listed at "Bombay Stock Exchange (BSE)" Mumbai. The listing fee to the stock exchanges has regularly been paid by the Company.

HOLDING/ SUBSIDIARY COMPANY RELATIONSHIP

For the purpose of undertaking the overseas business activities, the company floated a subsidiary in UAE in the name "BECKONS TRADING FZE" in the financial year 2009-10. The operation of the subsidiary has been wounded up whereas financials of subsidiary for the year 2013-14 are as under:

Rs. in lacs) PARTICULARS 31.03.14 31.03.13

Gross Income 0.00 707.24

Total Expenditure 0.00 707.25

Net Profit 0.00 (0.01)

FINANCIAL STATEMENT

As required under the listing agreement with the Stock Exchanges, Consolidated Financial Statements of the Company is attached. In accordance with the Statement of Accounting Standard on Consolidated Financial Statements (AS 21)and the Accounting Standard on Accounting for Investment in Associates (AS 23) and issued by the Institute of Chartered Accountants of India, the subsidiaries, have been considered in the Consolidated Financial Statements of the Company.

INDUSTRIAL RELATIONS

The Company maintained healthy, cordial and harmonious industrial relations at all levels. The enthusiasm and unstinting efforts of employees have enabled the Company to improve its position.

CASH FLOW STATEMENT

As required under clause 32 of the Listing Agreement, a cash flow statement is appended.

PARTICULARS OF THE EMPLOYEES

The Company had no employee during the year, whose particulars are required to be disclosed under Section 217(2A) of the Companies Act, 1956 , read with the Companies (Particulars of Employees) Rules 1975 amended from time to time.

NOTE ON ACCOUNTS

The observations of the auditors and notes on accounts are self-explanatory. The Company has complied with the provisions of all accounting standards which are applicable as on date.

AUDITORS

M/s. N. Kumar & Company, Chartered Accountants, the Statutory Auditors of the Company, holds office till the conclusion of the 27th Annual General Meeting (subject to the ratification at every Annual general Meeting) .

The Company has received letter from them to the effect that their re-appointment, if made, would be within the prescribed limits under Section 141(3) (g) of the Companies Act, 2013 and that they are not disqualified for re-appointment.

The Board recommends the appointment of M/s. N. Kumar & Company, Chartered Accountants as the Statutory Auditors of the Company for the year 2014-15, 2015-16, 2016-17, 2017-18, and 2018-19.

PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUT GO.

a) CONSERVATION OF ENERGY

i. Staggered Lighting System i.e. separate switches for separate sections are provided so that only required areas are lighted.

ii. Conventional Lighting Equipment is being replaced by Energy Saving Devices in a phased manner.

b) TECHNOLOGY ABSORPTION, ADOPTION AND INNOVATION

The Company has been involved in material cost reduction, improving the quality of products. The wastage has been completely controlled by making of the general stationery items and adding rolls from left-over paper.

c) FOREIGN EXCHANGE EARNINGS & OUT GO

No information is required under this head.

ACKNOWLEDGEMENT

The Directors wish to convey their appreciation to all of the Company''s employees for their enormous efforts and contribution to the Company''s record performance. The Directors would also like to thank the shareholders, customers, dealers, suppliers, bankers and all other business associates for the continuous support given by them to the Company and their confidence in its management.

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Mar 31, 2010

The Directors are pleased to present the 18th Annual Report together with the Audited Financial Statements of the Company for the year ended March 31, 2010.

FINANCIAL PERFORMANCE SUMMARY

(Rs. in lacs) PARTICULARS COMPANY CONSOLIDATED 31.03.10 31.03.09 31.03.10

Gross Income 503.00 531.19 11556.75

Total Expenditure 496.92 517.24 10498.05

Depreciation 11.34 12.48 11.34

Net profit before taxes (5.26) 1.47 1047.36

Add Deferment tax liability 3.58 1.01 3.58

Provision for Income Tax - 1.99 -

Net Profit after tax. (1.68) 0.49 1050.94



OPERATIONAL PERFORMANCE

The above given statistics shows that the company alongwith its subsidiary achieved a total turn over of Rs. 11556.75 lacs against an expenditure of Rs. 10498.05 lLacs. The results from the overseas business have been satisfactory and this lead to net profit after tax to Rs. 1050.94 Lacs for the first time in the companys history. The financial performance from the ongoing business of computer stationary remained un-satifactory. In fact there has been a loss amounting Rs. 1.68 lacs. This has happened due to the vast and rapid changes in information technology, the existing bussiness of continuous computer stationary has come to a saturated stage. There are no chances of any modification/renovations. The plant and machinery at times remained idle due to non-availability of orders from the customers, ever the orders received being for small quantity, the company could execute the same in a very less time. As on date the fixed cost of operating the plant and machinery for the production of continuous stationary at corporate level scale is higher than the revenue earned. As the company has entered into long term contracts and arrangements with Government sectors whereat for billing and other purposes the continuous computer stationary is being used, the management has decided to shift the existing business in a small industrial house wherefrom the company could serve its existing customers with the existing manpower and infrastructures. As there is no fresh business expected from continuous computer stationary in future, the existing assets shall be rendered idle. Accordingly, it has been thought proper to seek the shareholders approval under Section 293(1) (a) of the Act for shifting the existing business to new premises so that the company could manage the existing immovable assets which are have high cost but remaining in its best interest.

Further, the company by way of its 100% overseas subsidiary has achieved targeted results by doing the trading business. Although the total turn over from the overseas business has been voluminous yet being the trading business, the net margin could be very meager.

Again this year also the company continued with its Research & Development work for improvements in its Algae technology on a limited scale and partly completed the validation of scientific and engineering principles for our novel design of PBR and algal cultivation. The management believes that the competitive design of inexpensive PBR will lead to the cheaper method of microalgal cultivation which is subject to the validation for commercialization. The company has already successfully operationalize the development of the measurement. Monitor and validation (MMV) of Algae Technology at GOA to facilitate the process of developing the technology to the satisfaction of carbon emitters.

FUTURE PROSPECTS

As required under the Corporate Governance, the Management Discussion and Analysis, forming part of this report, reflects the current state of affairs of business.

SEGMENT REPORTING

Pursuant to the requirement of Accounting Standard 17 issued by the Institute of Chartered Accountants of India is reported that besides , manufacturing of Computer paper, the company has been engaged in the technology development of Micro algae for Fuel, Feed & Mitigation of Flue gases. The long term objectives is to reduce the dependence on Crude Oil particularly for transportation segment in India and elsewhere by using Micro algae based technology without directly or indirectly affecting food production and without any dependence on oil subsidies. The company has very successfully established an overseas trading business at UAE through its subsidiary company.

SHARE CAPITAL

The Authorised Share Capital of the company consists of Rs. 80,00,00,000/- divided into 8,00,00,000 equity shares of Rs. 10/- each . The Issued, Subscribed & Paidup Capital is Rs. 78,44,90,950/- in the following manners :

Rs. 19,79,38,000/- divided into 1,97,93,800 Equity Shares of Rs. 10/- each and Rs. 8,80,24,950/- divided into 5,86,833 GDRs (1 GDR = 15 Equity Shares) Rs. 49,85,28,000/- divided into 24,92,640 GDRs (1 GDR = 20 Equity Shares)

CORPORATE GOVERNANCE

A separate section on Corporate Governance forming part of the Directors Report and the certificate from the Practicing Company Secretary confirming compliance of Corporate Governance norms as stipulated in Clause 49 of the Listing Agreement with the Indian Stock Exchanges is icluded in the Annual Report.

DIRECTORS

During the year under review, the Board of Director of the company remained duly constituted in accordance of the provisions of the Companies Act, 1956 and in terms of the listing regulations. Further in terms of the provisions of Section 256 of Companies Act, 1956, Mr. Amritpal Singh Malhotra & Mr. H.S. Anand, Director retire by rotation. Mr. Amritpal Singh Malhotra & H.S. Anand, being eligible has offered for the reappointment as Director on the Board of the Company.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to the provisions of sub section (2AA) of section 217 of the Companies Act, 1956, the Directors confirm that :

i. In the preparation of annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures.

ii. 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 or loss of the Company for that period.

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 annual accounts have been prepared on a going concern basis.

DIVIDEND

In the wake of maginal profits and requirement of fund for expansionary business, your Board of Directors do not recommended the payment of Dividend for the Financial year ended 31st March, 2010.

PUBLIC DEPOSITS

The company has neither accepted any deposit from the public nor renewed any deposit within the meaning of Section 58A of the Companies Act, 1956 and the rules framed there under, during the year under review.

HOLDING/SUBSIDIARY COMPANY RELATIONSHIP

For the purpose of undertaking the overseas business activities, the company floated a subsidiary in UAE in the name “BECKONS TRADING FZE” in the financial y ear. Financials of subsidiary are as under:

(Rs. in lacs)

PARTICULARS 31.03.10 31.03.09

Gross Income 11053.75 -

Total Expenditure 10001.13 -

Net Profit 1052.62 -

FINANCIAL STATEMENT

As required under the Listing agreement with the Stock Exchanges, Consolidated Financial Statements of the Company is attached. In accordance with the Statement of Accounting Standard on Consolidated Financial Statements (AS 21) and the Accounting Standard on Accounting for Investments in Associates (AS 23) and issued by the Institute of Chartered Accountants of India, the subsidiaries, have been considered in the Consolidated Financial Statements of the Company.

PARTICULARS OF THE EMPLOYEES

The Company had no employee during the year, whose particulars are required to be disclosed under Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules 1975.

NOTE ON ACCOUNTS

The observations of the auditors and notes on accounts are self explanatory. The Company has complied with the provisions of all accounting standards which are applicable as on date.

AUDITORS

M/s. N. Kumar & Company, Chartered Accountants, the Statutory Auditors of your Company retire at the ensuing Annual General Meeting and being eligible, offer themselves for re-appointment. The Company has received a certificate from them as required under Section 224 (1B) of the Companies Act, 1956. The Board recommends the appointment of M/s. N.Kumar & Company, Chartered Accountants as the statutory Auditors of the Company.

PARTICULAR OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUT GO.

a) CONSERVATION OF ENERGY

i. Staggered Lighting System i.e. separate switches for separate sections are provided so that only required areas are lighted.

ii. Conventional Lighting Equipment is being replaced by Energy Saving Devices in a phased manner.

b) Technology Absorption, Adoption and Innovation

The company has been involved in material cost reduction, improving the quality of products. The wastage has been completely controlled by making of the general stationery items and adding rolls from left-over paper.

c) Foreign Exchange Earnings & Outgo.

No information is required under this head

ACKNOWLEDGMENT

The Directors wish to convey their appreciation to all of the Companys employees for their enormous efforts and contribution to the Companys record performance. The Directors would also like to thanks the shareholders, customers, dealers, suppliers, bankers and all the other business associates for the continuous support given by them to the Company and their confidence in its management.

Place : Mohali GURMEET SINGH

Date : 26.08.2010 Chairman cum Managing Director