Mar 31, 2016
Dear Members,
On behalf of the Board of Directors, it is my privilege and honor to place before you the 21st Annual Report and the Audited Statement of Accounts of the Company for the year ended 31st March, 2016.
Rs in Lacs |
||
2015-16 |
2014-15 |
|
Total Revenue |
26882.03 |
22975.05 |
Profit before Interest, Depreciation & Taxation |
1259.48 |
1092.39 |
Interest |
699.52 |
574.85 |
Depreciation |
112.68 |
112.68 |
Profit before tax |
447.28 |
404.86 |
Less: Provision for Taxation |
133.20 |
131.36 |
Profit after Tax |
314.08 |
273.50 |
Less: Proposed Dividend on equity Share |
30.00 |
- |
Dividend distribution Tax on Proposed Dividend |
4.50 |
- |
Add: Balance Brought Forward |
1101.53 |
828.03 |
Securities Premium |
450.11 |
450.11 |
Surplus carried to Balance Sheet |
1831.22 |
1551.64 |
BUSINESS PERFORMANCE:
The financial year 2015-16 witnessed the results of recent internal improvement programs and also reflected the positivity of the macro environment. Your Directors are pleased to report that in spite of being one of the most challenging years in the last decade the company maintained persistent growth in the year. You shall be happy to note that during the period 2015-16, your Company has achieved a substantial growth, both in turnover and profits.
Net Sales increased by.........................................17.26% to Rs. 268 crs
PBDIT increased by.............................................15.25% to Rs. 1259lacs
Profit before tax increased by..................................10.47% to Rs. 447.28 lacs
Net Profit increased by.........................................14.84% to Rs.314.08 lacs
FUTURE OUTLOOK
With the new government policy PAHAL (DBTL) Scheme it has able to restrict the black marketing of subsidies LPG and thereby saves Rs 10,000 crores. It has predominantly increased the sale of cylinders at market price and thereby a huge opportunity to the parallel marketers to play. According to Ministry of Petroleum and Natural Gas (MoPNG) demand for non-subsidies cylinders grew 30.82% during this period.
The success of the modified scheme helped fuel parallel marketing companies to gain significance growth in LPG. The Company expects a good growth in this segment as the companies are turning into eco- friendly LPG/CNG/Propane/Butane. The Management has taken adequate steps to cater the future demand for consolidating its position in the market. The new Bottling plants at Bangalore and Hyderabad are adding good gain to the future prospect of the company and your company further planning to set up/or purchase more Bottling Plant/Auto LPG Retail Outlets (Dispensing Stations) which will require substantial investment in future. The company is evaluating all the options to propel its expansion plans.
A. BOTTLING SEGMENT
The company caters the commercial cylinder market of West Bengal, Bihar and Orissa from its own bottling plant situated at Durgapur. The company already set up new LPG bottling plant at strategically potential locations to cover Central and Southern India as well for marketing its âEAST GASâ brand commercial LPG cylinders. Your company has started two new LPG bottling plants at Bangalore & Hyderabad with its vision of pan India presence. This will add to company''s presence in Domestic, Commercial and Industrial segment. With various government checks on Domestic LPG supplies the company expects that the Domestic sector will also open up as Good Avenue in years to come.
B. BULK LPG
The Company expects good growth in this segment due to the conversion of major industries from Coal/ other alternate fuels to LPG/Propane due to Environment concerns. LPG being a cleaner and cheaper fuel is preferred choice of the Industrial Customers. The company is also exploring opportunities throughout India as usage of LPG in Industrial houses is growing.
C. AUTO LPG
The Companies own Auto LPG Retail Outlet (ALRO) is already running in Paschim Medinipur, West Bengal and the company has a plan to start three more ALRO at Bagnan, Delhi Road & Chandannagar in West Bengal by this year and make the chain of 100 ALRO''s throughout India in coming years.
DIVIDEND
Your Directors are pleased to recommend a final dividend of Rs. 0.20/- per equity share on face value of Rs. 10/-each for the year ended March 31, 2016.
INSURANCE
The Assets of the Company including building, plant & machinery, etc are adequately insured for all its units.
INDEPENDENT DIRECTORS
The Board considered the appointment of Mr. Manish Yadav, Independent director in the board as mentioned in terms of section 149(1) of the Companies Act 2013 and presently Smt. Manika Mukherjee is the Independent Directors of the Company.
BOARD EVALUATION:
The Board considered the independence of each of the above mentioned Directors in terms of section 149 and schedule IV to the Companies Act 2013 and regulation 25 of SEBI (Listing Obligations & Disclosure Requirements), Regulation 2015 and was of the view that the directors fulfill the criteria of independence as mentioned in the above provisions. A structure of questionnaire was prepared after taking into consideration various aspects of Board''s functioning. The performance evaluation of Independent Directors was carried out by the Independent directors and the Board of Directors expressed their satisfaction with the evaluation process.
STATUTORY AUDITORS
The Statutory Auditors of the Company M/s. C B C & ASSOCIATES. Chartered Accountants, were re-appointed for period of 5 years till 31st March, 2021 and their appointed is ratified in the ensuing Annual General Meeting.
AUDITORâS REPORT
The Board has duly examined the Statutory Auditors'' Report to the accounts and clarifications, wherever necessary, have been included in the Notes to the Accounts section of the Annual Report.
FIXED DEPOSITS
The Company has not accepted any deposits within the meaning of Section 73 of the Companies Act, 2013, and the rules made there under.
SHARE CAPITAL
During the year 2015-16 there was no further issue of share capital.
MANAGEMENT DISCUSSION AND ANALISIS REPORT
A detailed discussion of the industry structure as well as on the financial and operational performance is contained in the '' Management Discussion and Analysis Report''( Annexure - 1)
CORPORATE GOVERNANCE
Pursuant to Regulation 27 of SEBI (Listing Obligation and Disclosure Requirements), Regulation 2015 of the Listing Agreement with the Stock Exchanges, Corporate Governance report together with the certification from the company''s auditors confirming the compliance of conditions on Corporate Governance is given in (Annexure-2).
Section 134(3) of the Companies Act, 2013 requires the Board report to include several additional contents and disclosures compared to the earlier Law. Most of them have accordingly been made in the Corporate Governance report at the appropriate places that forms an integral part of this report.
EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in Form MGT- 9 is given in (Annexure- 3).
PARTICULARS OF EMPLOYEES:
In terms of the provisions of section 197(12) of the Companies Act ''2013 read with rule 5(1) to 5(3) of the Companies ( Appointment and Remuneration of Managerial Personnel) Rules,2014, the names and other particulars of the employees drawing remuneration in excess of the limits set out in the Rules are provided in the Annual Report. However, as per first proviso to section 136(1) of the said Act the Annual report excluding the aforesaid information is being sent to all the members of the Company and others entitled thereto. Any member interested in obtaining such particulars may write to the Company at the registered office of the Company. None of the employees as set out in the said Annexure is related to any Director of the Company.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING AND OUTGO
A. CONSERVATION OF ENERGY
(a). Energy conversation measures taken: During the year external experts conducted an energy audit and the recommendations have been implemented.
(b). Additional investments and proposals, if any, being implemented for reduction of consumption of energy: No additional investments for reduction in energy consumption have been made or are proposed to be made presently.
(c). Impact of the measures at (a) and (b) above for reduction of energy consumption and consequent impact on the cost of production of goods: the company has achieved marginal savings during 2015-16 due to the measures at (a) above.
B. RESEARCH & DEVLOPMENT (R&D)
No R & D activities have been carried out by the company during the year.
C. TECHNOLOGY ABSORPTION
The Company always keeps a check on global innovation and techniques to avail the latest technology trends and practices. The Company has not imported any technology or process in the financial year.
D. FOREIGN EXCHANGE EARNINGS & OUTGO
The Company had no Foreign Exchange earnings and Outgo during the year under review.
SUBSIDIARY
It is reported that the Company has no Subsidiary within the meaning of provisions of the Companies Act, 2013.
SOCIAL COMMITMENT
Our driving objective is to improve living and working condition of our workforce, their dependents and society as well. There has been a constant endeavor to interact with the workers on a day to day basis and promptly resolve the issues that surface up.
ENVIRONMENTAL EFFORTS
Company has obtained all the required certificates and License from Environment Control Regulators to check Safe and Environment friendly Operations. The Company is quite alert in providing clean environment on a continuous basis.
SAFETY
The Company has adequate system for Industrial Safety. In the said year the company has strengthen its fire safety equipment at it units. The year under review continued to be NIL accident year.
DIRECTORSâ RESPONSIBILITY STATEMENT
The Directors'' Responsibility Statement referred to in clause (c) of sub-section (3) of Section 134 of the Companies Act, 2013, shall state thatâ
(a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
(b) the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the company for that period;
(c) the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;
(d) the directors had prepared the annual accounts on a going concern basis; and
(e) the directors have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.
(f) the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.
PARTICULARS OF LOANS, GUARANTEE OR INVESTMENTS:
The Company did not give any Loan or Guarantee or provided any security or make investment covered under Section 186 of the Companies Act 2013 during the year.
VOLUNTARY DELISTING OF EQUITY SHARES
The Company has applied for delisting of shares from Ahmadabad Stock Exchange Ltd. (ASE) and Jaipur Stock Exchange Ltd. (JSE), which is under process.
ACKNOWLEDGEMENTS
The Board records its sincere appreciation for the valuable support extended by the Company''s Bankers, Financial Institutions and the Government Agencies. The Board also wishes to thank all its suppliers / customers / distributors / dealers and all those associated with the Company. The Board further conveys cordial thanks to all the employees for their sincere works and takes this opportunity to thank Shareholders for their continued confidence reposed in the Management of the Company.
By order of the Board of Directors
For EASTERN GASES LIMITED
Place: Kolkata S.K BHANSALI
Dated: 3rd Sept''2016 Director
Mar 31, 2015
Dear Members,
On behalf of the Board of Directors, it is my privilege and honor to
place before you the 20th Annual Report and the Audited Statement of
Accounts of the Company for the year ended 31st March, 2015.
Rs in Lacs
2014-15 2013-14
Total Revenue 22975.05 22779.90
Profit before Interest, Depreciation & Taxation 1183.60 965.31
Interest 611.60 525.55
Depreciation 167.14 90.84
Profit before tax 404.86 348.92
Less: Provision for Taxation 131.36 118.72
Profit after Tax 273.50 230.20
Add: Balance Brought Forward 828.03 597.83
Securities Premium 450.11 450.11
Surplus carried to Balance Sheet 1551.64 1278.14
BUSINESS PERFORMANCE:
The financial year 2014-15 witnessed the results of recent internal
improvement programs and also reflected the positivity of the macro
environment. Your Directors are pleased to report that in spite of
being one of the most challenging years in the last decade the company
maintained persistent growth in the year. You shall be happy to note
that during the period 2014-15, your Company has achieved a substantial
growth, both in turnover and profits.
Net Sales increased by.........................1% to Rs. 228 crs
PBDIT increased by.............................23% to Rs. 1185 lacs
Profit before tax increased by.................16% to Rs. 404.86 lacs
Net Profit increased by........................19% to Rs.273.50 lacs
FUTURE OUTLOOK
With the new government policy PAHAL (DBTL) Scheme it has able to
restrict the black marketing of the subsides LPG and thereby saves Rs
10,000 crores. It has predominantly increased the sell of cylinders at
market price and thereby a huge opportunity to the parallel marketers
to play . According to Ministry of Petroleum and Natural Gas (MoPNG)
demand for non subsidies cylinders grew 30.82% during this period.
The success of the modified scheme helped fuel parallel marketing
companies to gain significance growth in LPG. The Company expects a
good growth in this segment as the companies are turning into eco-
friendly LPG/CNG/Propane/Butane. The Management has taken adequate
steps to cater the future demand for consolidating its position in the
market. The new Bottling plants at Bangalore and Hyderabad are adding
good gain to the future prospect of the company and your company
further planning to set up/or purchase more Bottling Plant/Auto LPG
Retail Outlets (Dispensing Stations) which will require substantial
investment in future. The company is evaluating all the options to
propel its expansion plans.
A. BOTTLING SEGMENT
The company caters the commercial cylinder market of West Bengal, Bihar
and Orissa from its own bottling plant situated at Durgapur. The company
already set up new LPG bottling plant at strategically potential
locations to cover Central and Southern India as well for marketing its
"EAST GAS" brand commercial LPG cylinders. Your company has started two
new LPG bottling plants at Bangalore & Hyderabad with its vision of pan
India presence. This will add to company's presence in Domestic,
Commercial and Industrial segment. With various government checks on
Domestic LPG supplies the company expects that the Domestic sector will
also open up as Good Avenue in years to come.
6. BULKLPG
The Company expects good growth in this segment due to the conversion
of major industries from Coal/ other alternate fuels to LPG/Propane due
to Environment concerns. LPG being a cleaner and cheaper fuel is
preferred choice of the Industrial Customers. The company is also
exploring opportunities throughout India as usage of LPG in Industrial
houses is growing.
C. AUTOLPG
The Companies own Auto LPG Retail Outlet (ALRO) is already running in
Paschim Medinipur, West Bengal and the company has a plan to start
three more ALRO at Bagnan, Delhi Road & Chandannagar in West Bengal by
this year and make the chain of 100 ALRO's throughout India in coming
years.
DIVIDEND
The Board believes that it will be prudent for the company to conserve
resources in view of future expansion programs in line for the coming
year, which will enhance the profitability to a great extent. Hence,
your directors are not recommending any dividend for the Financial Year
2014-15.
INSURANCE
The Assets of the Company including building, plant & machinery, etc
are adequately insured for all its units.
INDEPENDENT DIRECTORS
The Board considered the appointment of woman director in the board as
mentioned in terms of section 149(1) and schedule IV to the Companies
Act 2013 and clause 49 of the listing agreement and presently Shri.
Debarata Choudhury, Shri Tejvir Singh , Shri Anil Choudhury Legha & Smt
Manika Mukherjee are the Independent Directors of the Company.
BOARD EVALUATION :
The Board considered the independence of each of the above mentioned
Directors in terms of section 149 and schedule IV to the Companies Act
2013 and clause 49 of the listing agreement and was of the view that
the directors fulfill the criteria of independence as mentioned in the
above provisions . A structure of questionnaire was prepared after
taking into consideration various aspects of Board's functioning . The
performance evaluation of Independent Directors was carried out by the
Independent directors and the Board of Directors expressed their
satisfaction with the evaluation process.
STATUTORY AUDITORS
The Statutory Auditors of the Company M/s. Sarkar Gurumurthy &
Associates, Chartered Accountants, were appointed for period of 5 years
till 31st March'2019 and their appointed is ratified in the ensuing
Annual General Meeting.
AUDITOR'S REPORT
The Board has duly examined the Statutory Auditors' Report to the
accounts and clarifications, wherever necessary, have been included in
the Notes to the Accounts section of the Annual Report.
FIXED DEPOSITS
The Company has not accepted any deposits within the meaning of Section
73 of the Companies Act, 2013, and the rules made there under.
SHARE CAPITAL
During the year 2014-15 there was no further issue of share capital.
MANAGEMENT DISCUSSION AND ANALISIS REPORT
A detailed discussion of the industry structure as well as on the
financial and operational performance is contained in the ' Management
Discussion and Analysis Report'( Annexure -1)
CORPORATE GOVERNANCE
Pursuant to clause 49 of the Listing Agreement with the Stock
Exchanges, Corporate Governance report together with the certification
from the company's auditors confirming the compliance of conditions on
Corporate Governance is given in (Annexure-2).
Section 134(3)of the Companies Act ,2013 requires the Board report to
include several additional contents and disclosures compared to the
earlier Law. Most of them have accordingly been made in the Corporate
Governance report at the appropriate places that forms an integral part
of this report.
EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in Form
MGT- 9 is given in (Annexure- 3).
PARTICULARS OF EMPLOYEES:
In terms of the provisions of section 197(12) of the Companies Act
'2013 read with rule 5(1) to 5(3) of the Companies ( Appointment and
Remuneration of Managerial Personnel) Rules,2014, the names and other
particulars of the employees drawing remuneration in excess of the
limits set out in the Rules are provided in the Annual Report. However,
as per first proviso to section 136(1) of the said Act the Annual
report excluding the aforesaid information is being sent to all the
members of the Company and others entitled thereto. Any member
interested in obtaining such particulars may write to the Company at
the registered office of the Company . None of the employees as set out
in the said Annexure is related to any Director of the Company.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING
AND OUTGO
A. CONSERVATION OF ENERGY
(a) . Energy conversation measures taken: During the year external
experts conducted an energy audit and the recommendations have been
implemented.
(b) . Additional investments and proposals, if any , being implemented
for reduction of consumption of energy: No additional investments for
reduction in energy consumption have been made or are proposed to be
made presently.
(c) . Impact of the measures at (a) and (b) above for reduction of
energy consumption and consequent impact on the cost of production of
goods: the company has achieved marginal savings during 2014-15 due to
the measures at (a) above.
B. RESEARCH & DEVLOPMENT (R&D)
No R & D activities have been carried out by the company during the
year.
C. TECHNOLOGY ABSORPTION
The Company always keeps a check on global innovation and techniques to
avail the latest technology trends and practices. The Company has not
imported any technology or process in the financial year.
D. FOREIGN EXCHANGE EARNINGS & OUTGO
The Company had no Foreign Exchange earnings and Outgo during the year
under review.
SUBSIDIARY
It is reported that the Company has no Subsidiary within the meaning of
provisions of the Companies Act, 2013.
SOCIAL COMMITMENT
Our driving objective is to improve living and working condition of our
workforce, their dependents and society as well. There has been a
constant endeavor to interact with the workers on a day to day basis
and promptly resolve the issues that surface up.
ENVIRONMENTAL EFFORTS
Company has obtained all the required certificates and License from
Environment Control Regulators to check Safe and Environment friendly
Operations. The Company is quite alert in providing clean environment
on a continuous basis.
SAFETY
The Company has adequate system for Industrial Safety. In the said year
the company has strengthen its fire safety equipment at it units. The
year under review continued to be NIL accident year.
DIRECTORS' RESPONSIBILITY STATEMENT
The Directors' Responsibility Statement referred to in clause (c) of
sub-section (3) of Section 134 of the Companies Act, 2013, shall state
thatÂ
(a) in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
(b) the directors had selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the company at the end of the financial year and of the profit and
loss of the company for that period;
(c) the directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the company and
for preventing and detecting fraud and other irregularities;
(d) the directors had prepared the annual accounts on a going concern
basis; and
(e) the directors have laid down internal financial controls to be
followed by the company and that such internal financial controls are
adequate and were operating effectively.
(f) the directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
PARTICULARS OF LOANS, GUARANTEE OR INVESTMENTS:
The Company did not give any Loan or Guarantee or provided any security
or make investment covered under Section 186 of the Companies Act 2013
during the year.
VOLUNTARY DELISTING OF EQUITY SHARES
The Company has applied for delisting of shares from Ahmadabad Stock
Exchange Ltd. (ASE) and Jaipur Stock Exchange Ltd. (JSE), which is
under process.
ACKNOWLEDGEMENTS
The Board records its sincere appreciation for the valuable support
extended by the Company's Bankers, Financial Institutions and the
Government Agencies. The Board also wishes to thank all its suppliers /
customers / distributors / dealers and all those associated with the
Company. The Board further conveys cordial thanks to all the employees
for their sincere works and takes this opportunity to thank
Shareholders for their continued confidence reposed in the Management
of the Company.
By order of the Board of Directors
For EASTERN GASES LIMITED
Place: Kolkata S.K BHANSALI
Dated: 3rd Sept'2015 Director
(DIN:00344931)
Mar 31, 2014
Dear Members,
On behalf of the Board of Directors, it is my privilege and honor to
place before you the nineteenth Annual Report and the Audited Statement
of Accounts of the Company for the year ended 31st March, 2014.
(Rs. in Lacs)
2013-14 2012-13
Total Revenue 22779.9 20968.41
Profit before Interest, depreciation
and taxation 965.31 611.98
Interest 525.55 268.33
Depreciation 90.84 67.41
Profit Before Tax 348.92 276.24
Less: Provision for Taxation 118.72 58.26
Profit after Tax 230.2 217.98
Add: Ba la nce Brought Forward 597.83 379.85
Securities Premium 450.11 450.11
Surplus carried to Balance Sheet 1278.14 1047.94
BUSINESS PERFORMANCE:
Your Directors are pleased to report that in spite of being one of the
most challenging years in the last decade, 2013-14 has turned out to be
yet another satisfactory year for your company with respect to
performance level and consolidation of its position in the market with
firm commitment & sustained efforts. The company expects to maintain
persistent growth in the years to come. You shall be happy to note that
during the period 2013-14, your Company has achieved a substantial
growth, both in turnover and profits
Net Sales increased by 8% to Rs. 227.28 crs PBDIT
increased by 58% to Rs.965.31 lacs
Profit before tax increased by 26% to Rs.348.92 lacs
Net Profit increased by 6% to Rs.230.02 lacs
FUTURE OUTLOOK
The world is now moving towards a cleaner and pollution free
environment and your company is well established in clear fuel LPG,
which is eco-friendly and will gain significance growth in LPG sector
not only in the eastern region, but also in whole of India. The Company
expects a good growth in this segment as the companies are turning into
LPG usable furnaces and systems for their plants due to clean and
cheaper fuel. The Management has taken adequate steps to cater the
future demand for consolidating its position in the market. The company
has purchased new Bottling plants at Bangalore and Hyderabad and
planning to set up/or purchase more Bottling Plant/Auto LPG Retail
Outlets (Dispensing Stations) which will require substantial investment
in future. The company is evaluating all the options to propel its
expansion plans.
A. BOTTLING SEGMENT
The company caters the commercial cylinder market of West Bengal, Bihar
and Orissa from its own bottling plant situated at Durgapur. The
company already stepped forward to set up few new LPG bottling plant at
strategically potential locations to cover Central and Southern India
as well for marketing its "EAST GAS" brand commercial LPG cylinders.
Your company has started two new LPG bottling plants at Bangalore &
Hyderabad with its vision of pan India presence. This will add to
company''s presence in Domestic, Commercial and Industrial segment. With
various government checks on Domestic LPG supplies the company expects
that the Domestic sector will also open up as Good Avenue in years to
come.
B. BULK LPG
The Company expects good growth in this segment due to the conversion
of major industries from Coal/ other alternate fuels to LPG/Propane due
to Environment concerns. LPG being a cleaner and cheaper fuel is
preferred choice of the Industrial Customers. The company is also
exploring opportunities throughout India as usage of LPG in Industrial
houses is growing.
C. AUTO LPG
The Companies own Auto LPG Retail Outlet (ALRO) is already running in
Paschim Medinipur, West Bengal and the company has a plan to start
three more ALRO at Bagnan, Delhi Road & Chandannagar in West Bengal by
this year and make the chain of 100 ALRO''s throughout India in coming
years.
DIVIDEND
The Board believes that it will be prudent for the company to conserve
resources in view of future expansion programs in line for the coming
year, which will enhance the profitability to a great extent. Hence,
your directors are not recommending any dividend for the Financial Year
2013-14.
INSURANCE
The Assets of the Company including building, plant & machinery, etc
are adequately insured for all its units.
INDEPENDENT DIRECTORS
Pursuant to section 149 of the Companies Act 2013 (new Act) read with
the rules made there under, the Independent Directors shall hold office
for a period up to 5 consecutive years and shall not be liable to
retire by rotation. They may be appointed for a maximum of two
consecutive terms of 5 years each. In terms of the revised clause 49 of
the listing agreement which will be applicable from 01st October ''2014,
presently Shri. Debarata Choudhury, Shri Tejvir Singh & Shri Anil
Choudhury Legha are the Independent Directors of the Company.
The Board considered the independence of each of the above mentioned
Directors in terms of section 149 and schedule IV to the Companies Act
2013 and clause 49 of the listing agreement and was of the view that
the proposed directors fulfill the criteria of independence as
mentioned in the above provisions and can be appointed as
Independent Directors. All the proposed Directors possess requisite
qualifications, appropriate skills experience and knowledge. The Board
has recommended their appointment as Independent Directors of the
Company to hold office for a term of five consecutive years commencing
from the date of ensuing Annual General meeting of the Company.
STATUTORY AUDITORS
The Statutory Auditors of the Company M/s. Sarkar Gurumurthy &
Associates, Chartered Accountants, will retire at the ensuing Annual
General Meeting and have confirmed their eligibility and willingness to
accept office of Auditors, if reappointed. The Audit Committee and the
Board of Directors recommended M/s. Sarkar Gurumurthy & Associates, as
Statutory Auditors of the Company to hold the office from the
conclusion of the Annual General Meeting of the members'' of the Company
for the year ended March 31, 2014, until the conclusion of the Annual
General Meeting of the Members'' of the Company to be held for the year
ended March 31, 2019, (five consecutive years) for shareholders''
approval.
As required under the provisions of section 139(1) of the Companies Act
2013, the Company has obtained a written Certificate from the above
Auditors proposed to be re- appointed to the effect that re -
appointment, if made, would be in conformity with the limits specified
in the said section.
AUDITOR''S REPORT
The Board has duly examined the Statutory Auditors'' Report to the
accounts and clarifications, wherever necessary, have been included in
the Notes to the Accounts section of the Annual Report.
FIXED DEPOSITS
The Company has not accepted any deposits within the meaning of Section
58A of the Companies Act, 1956, and the rules made there under.
SHARE CAPITAL
During the year 2013-14 there was no further issue of share capital.
CORPORATE GOVERNANCE
The Company has adopted the best corporate governance norms and it has
been our endeavor to comply and upgrade to the changing norms. A
separate section on Corporate Governance and a certificate from the
Statutory Auditors of the Company regarding the compliance of the
conditions as stipulated under clause49 of the Listing Agreement(s)
with the Stock Exchanges(s) form part of the Annual Report.
In terms of sub- clause(v) of the Clause 49 of the Listing Agreement, a
certificate of the CEO/CFO, inter alia, confirming the correctness of
the financial statements, adequacy of the internal audit control
measures and reporting of matters to the Audit Committee in terms of
the said Clause, is also enclosed as a part of this Report.
PARTICULARS OF EMPLOYEES:
Information pursuant to section 217(2A) of the Companies Act 1956 read
with Companies (Particulars of Employees) Rules 1975, forms part of
this Report. Any Member interested may obtain a copy of the statement
from the Company.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING
AND OUTGO
A. CONSERVATION OF ENERGY
Information required to be provided under Section 217(1)(e) of the
Companies Act, 1956, read with the Companies (Disclosure of Particulars
in the Report of the Board of Directors) Rules, 1988 in relation to the
Conservation of Energy and Technological Absorption are currently not
applicable to the Company. However, the company requires energy for its
operations and every effort is made to ensure the optimal use of
energy, avoid misuse and conserve energy.
B. RESEARCH & DEVLOPMENT (R&D)
No R & D activities have been carried out by the company during the
year.
C. TECHNOLOGY ABSORPTION
The Company always keeps a check on global innovation and techniques to
avail the latest technology trends and practices. The Company has not
imported any technology or process in the financial year.
D. FOREIGN EXCHANGE EARNINGS & OUTGO
The Company had Foreign Exchange earnings and Outgo during the year
under review,
details as under:
Particulars Current Year (2013-14) Previous year (2012-13)
Foreign exchange Earned Outgo Earned Outgo
Nil Nil Nil 3564 USD
SUBSIDIARY
It is reported that the Company has no Subsidiary within the meaning of
Section 4 of the Companies Act, 1956.
SOCIAL COMMITMENT
Our driving objective is to improve living and working condition of our
workforce, their dependents and society as well. There has been a
constant endeavor to interact with the workers on a day to day basis
and promptly resolve the issues that surface up.
ENVIRONMENTAL EFFORTS
Company has obtained all the required certificates and License from
Environment Control Regulators to check Safe and Environment friendly
Operations. The Company is quite alert in providing clean environment
on a continuous basis.
SAFETY
The Company has adequate system for Industrial Safety. In the said year
the company has strengthen its fire safety equipment at it units. The
year under review continued to be NIL accident year.
DIRECTORS'' RESPONSIBILITY STATEMENT
Your Directors confirm that:
A. in the preparation of the annual accounts all applicable accounting
standards had been followed. There are no material departures from
prescribed accounting standards.
B. We 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 2013-14 and of the profit
of the Company for that period;
C. We have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions this Act
, for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities;
D. We have prepared the annual accounts on a ''going concern'' basis.
VOLUNTARY DELISTING OF EQUITY SHARES
The Company has applied for delisting of shares from Ahmedabad Stock
Exchange Ltd. (ASE) and Jaipur Stock Exchange Ltd. (JSE), which is
under process.
ACKNOWLEDGEMENTS
The Board records its sincere appreciation for the valuable support
extended by the Company''s Bankers, Financial Institutions and the
Government Agencies. The Board also wishes to thank all its suppliers /
customers / distributors / dealers and all those associated with the
Company. The Board further conveys cordial thanks to all the employees
for their sincere works and takes this opportunity to thank
Shareholders for their continued confidence reposed in the Management
of the Company.
For and on behalf of the Board
Place: Kolkata Sushil Kumar Bhansali
Dated: 31st May 2014 Chairman
Mar 31, 2012
The Directors are pleased to present their Seventeenth Annual Report on
the business and operations of your Company and the Audited Statement
of Accounts for the year ended 31st March, 2012.
(Rs. in Lacs)
2011-12 2010-11
Net Sales 13593.26 8972.53
Profit before Interest, depreciation and taxation 454.84 348.28
Financial Cost 208.03 173.80
Depreciation 58.95 47.40
Profit Before Tax 187.86 132.57
Less: Provision for Taxation including FBT 40.43 34.07
Net Profit 147.43 98.50
Add: Balance Brought Forward 232.42 133.92
Surplus carried to Balance Sheet 379.85 232.42
Net Worth 1236.83 1030.19
1. REVIEW OF OPERATION
The Company has been gradually gearing up its performance level to
consolidate its position in the face of stiff competition in the market
with firm commitment & sustained efforts. The company expects to
maintain persistent growth in the years to come. You shall be happy to
note that during the period 2011-12, your Company has clocked a
substantial growth, both in turnover and profits Net Sales increased by
-51% to Rs. 13,593 lakhs PBDIT increased by -31% to Rs. 454 lakhs
Profit before tax increased by -42% to Rs. 187 lakhs Net Profit
increased by -50% to Rs. 147 lakhs
2. FUTURE OUTLOOK
During the course of current financial year, the Board has witnessed an
impressive rise in demand mainly due to public awareness for usage of
commercial cylinders in commercial applications in the place of
domestic cylinders and accordingly the Company expects to perform
better. The Management has taken adequate steps to cater the future
demand for consolidating its position in the market. LPG being more
economical in comparison with others fuels and the industry will gain
significance not only in the Eastern Region, but also throughout India.
The company has also decided for setting up more Bottling plant/Auto
LPG Retail Outlets (Dispensing stations) which will require substantial
investment in future. The company is evaluating all the options to
propel its expansion plans.
A. BOTTLING SEGMENT
The company caters the commercial cylinder market of West Bengal, Bihar
and Orrisa from its own bottling plant situated at Durgapur. Now the
company is planning to set up few new LPG bottling plant at
strategically potential locations to cover Central and Southern India
as well for marketing its "EAST GAS" brand commercial LPG cylinders.
This will add to company-s presence in Commercial and Industrial
segment.
B. BULK LPG
The Company expects good growth in this segment due to the conversion
of major industries from Coal/ other alternate fuels to LPG/Propane due
to Environment concerns. LPG being a cleaner and cheaper fuel is
preferred choice of the Industrial customers. The company is also
exploring opportunities throughout India as usage of LPG in Industrial
heating processes is growing.
C. AUTO LPG
The company has already commissioned its 1st ALRO in West Bengal The
company has ambitious plans to make the chain of 100 Auto LPG filling
stations throughout India in coming years.
3. DIVIDEND
The Board believes that it will be prudent for the company to conserve
resources in view of future expansion programs in line for the coming
year, which will enhance the profitability to a great extent. Hence,
your directors are not recommending any dividend for the Financial Year
2011-12.
4. ISSUE OF SHARE CAPITAL
There was no further issue of share capital during the year.
5. MANAGEMENT DISCUSSION AND ANALYSIS
Pursuant to clause 49 of the Listing agreement a separate report on
Management Discussion and Analysis, forming part of this Annual Report,
is annexed.
6. CORPORATE GOVERNANCE
A report on Corporate Governance is annexed as part of Annual Report
along with the Auditors- Certificate on its compliance.
7. VOLUNTARY DELISTING OF EQUITY SHARES
Consequent upon the approval of members at the Sixth Annual General
Meeting of the Company held on 27th September, 2001 and in pursuance of
the delisting guidelines issued by SEBI, the Company has applied for
delisting of shares from Ahmedabad Stock Exchange Ltd. (ASE) and Jaipur
Stock Exchange Ltd. (JSE), there is almost no trading of company-s
share on the ASE and JSE. The delisting will not adversely affect the
members of the Company as the equity shares continue to be listed on
Calcutta Stock Exchange Ltd. The Company hereby unconditionally and
irrevocably undertakes to keep indemnified and harmless ASE and The
JSE, its officials against any action, claim, causes, proceedings,
demands, whatsoever which may arise on account of voluntary delisting.
8. PUBLIC DEPOSITS
The Company has not accepted any deposits from the public within the
meaning of section 58A of the Companies Act, 1956 and the rules made
thereof.
9. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO:
A. CONSERVATION OF ENERGY
Information required to be provided under Section 217(1)(e) of the
Companies Act, 1956, read with the Companies (Disclosure of Particulars
in the Report of the Board of Directors) Rules, 1988 in relation to the
Conservation of Energy and Technological Absorption are currently not
applicable to the Company.
B. TECHNOLOGY ABSORPTION
The Company always keeps a check on global innovation and techniques to
avail the latest technology trends and practices. The Company has not
imported any technology or process in the financial year.
C. FOREIGN EXCHANGE EARNINGS & OUTGO
The Company neither had any Foreign Exchange earnings nor any Outgo
during the year under review.
10. SUBSIDIARY
It is reported that the Company has no Subsidiary within the meaning of
Section 4 of the Companies Act, 1956.
11. INFORMATION TECHNOLOGY
The Company believes that Information Technology is a source of
competitive advantage and has therefore continued to invest in the
same. The company has successfully implemented the ERP system and is
planning to install SAP system in the coming year for better control
and management.
12. SOCIAL COMMITMENT
The Company is fully aware of responsibilities towards its own
employees, their dependent and local community within which the works
are situated and to the people of Durgapur and West Bengal in general.
Our driving objective has been to improve living, safety and working
condition of our workforce and their dependents and society as well.
13. ENVIRONMENTAL EFFORTS
The Company is quite alert in providing clean environment on a
continuous basis.
14. SAFETY
The Company has adequate system for Industrial safety. The year under
review continued to be NIL accident year.
15. DIRECTORS
Shri Bijay Singh Baid, Director of the company retires by rotation at
the forthcoming Annual General Meeting and being eligible, offer
himself for re-appointment.
16. STATUTORY AUDITORS & AUDITORS REPORT
M/s. Sarkar Gurumurthy & Associates, the auditor of the Company will
retire at the conclusion of this Annual General Meeting and being
eligible as per Section 224 (1B) of the Companies Act, 1956, they have
expressed their willingness for re-appointment. It is proposed to
re-appoint them as auditors for the financial year 2012- 2013 and fix
their remuneration.
Your Directors have no comments on the Auditor-s Report since the
Report itself is self-explanatory.
17. DIRECTORS' RESPONSIBILITY STATEMENT
The Directors confirm that:
A. in the preparation of the annual accounts all applicable accounting
standards had been followed along with proper explanation relating to
material departures, if any;
B. the Directors had selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year and of the profit of
the Company for that period;
C. the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956, for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
D. the Directors have prepared the annual accounts on a Ãgoing concern-
basis.
18. ACKNOWLEDGEMENTS
The Board records its sincere appreciation for the valuable support
extended by the Company-s Bankers, Financial Institutions and the
Government Agencies. The Board also wishes to thank all its suppliers /
customers / dealers / sub-dealers and all those associated with the
Company. The Board further conveys cordial thanks to all the employees
for their sincere works and takes this opportunity to thank
Shareholders for their continued confidence reposed in the Management
of the Company.
For and on behalf of the Board
Place: Kolkata S.K. Bhansali
Dated: 31st May,2012 Chairman
Mar 31, 2010
The Directors have great pleasure in presenting the Thirteenth Annual
Report and the Audited Statement of Accounts of the Company for the
year ended 31st March, 2010.
PERFORMANCE IN FINANCIAL TERMS
(Rs. In Lakhs )
2009-10 2008-09
Net Sales 6290.46 3873.63
Profit before Interest, depreciation
and taxation 224.21 184.00
Interest 115.78 103.22
Depreciation 29.92 26.10
Profit Before Tax 78.51 54.68
Less: Provision for Taxation
including FBT 15.23 7.46
Net Profit 63.28 47.22
Add: Balance Brought Forward 70.64 23.42
Surplus carried to Balance Sheet 133.92 70.64
Net Worth 883.59 773.38
REVIEW OF OPERATION
The Company has been gradually gearing up its performance level to
consolidate its position in the face of stiff competition in the market
with firm commitment & sustained efforts. The company expects to
maintain persistent growth in the years to come. During the year under
review the Company has achieved sales to the tune of Rs.6291/-lakhs
against Rs.3874/- lakhs in the previous year. The Company was also
able to achieve Operational Profit to Rs. 224/- lakhs against Rs.
184/- lakhs last year. Net Profit has also grown up to Rs. 63/- lakhs
against Rs. 47/- lakhs last year.
PROSPECT IN THE CURRENT YEAR
However during the course of current financial year, the Board has
witnessed an impressive rise in demand powered by accelerated economic
growth, public awareness for usage of commercial cylinders for
commercial application instead of domestic cylinders and accordingly
the Company expects to perform better. The Management has taken
adequate steps to cater the future demand for consolidating its
position in the market. LPG being more economical in comparison with
others fuels and the industry will gain significance not only in the
Eastern Region, but also throughout India. The company has also decided
for setting up more Bottling plant/Auto LPG dispensing stations which
will require substantial investment in future.
A. BOTTLING SEGMENT
The company is currently catering the commercial cylinder market of
Kolkata and adjoining suburbs from its own bottling plant situated at
Durgapur. The Company has already entered into arrangements with
various private sector bottling plants situated at major locations to
cover all major LPG commercial hubs for refilling of ÃEAST GASÃ
Cylinders. This will add to companys presence in Commercial and
Industrial marketing segment. In addition to above the Company is also
planning to set three more Manufacturing Cum Bottling Plants at
strategically best locations to cover West, South and Central India.
B. BULK LPG
The Company expects a good growth in this segment as the prices for
alternate fuel are increasing and the Industrial customers prefer
sustained supplies of fuel which is cheap and eco-friendly. The company
is planning to explore opportunities throughout India as usage of LPG
in Industrial heating processes is growing.
C. AUTO LPG
The company would be the 1st private sector parallel marketer to enter
in this segment in Eastern India in the year, 2010-11 along with IPPL.
The company is also planning to start 100 Auto LPG filling stations
throughout India in coming years.
D. READY MIX CONCRETE
Ready Mix Concrete or RMC is the latest concept of easing out the
operations for a big concreting job. Since the demand for such mixed
concrete is increasing at the rate of more than 75% per year; he
business of putting up RMC plants are upcoming very rapidly. The
increasing competition may hamper hefty initial profits, however first
players will dominate the market without doubt. Keeping the same in
mind East Gas has entered into this segment as well and expects a great
growth in this line in upcoming days.
E. OTHER AREAS
The Company is in active talks with Indias leading gas companies for
business relationships and is keeping close watch to enter into the
City Gas Distribution, Coal Bed Methane (CBM) and Compressed Natural
Gas (CNG) business.
DIVIDEND
The Board believes that it will be prudent for the company to conserve
resources in view of future expansion programs inline for the coming
year, which will enhance the profitability to a great extent. Hence,
your directors are not recommending any dividend for the Financial Year
2009-10.
ISSUE OF SHARE CAPITAL
There is no further issue of share capital during the year.
MANAGEMENT DISCUSSION AND ANALYSIS.
Pursuant to clause 49 of the Listing agreement a separate report on
Management Discussion and Analysis, forming part of this Annual Report,
is annexed.
CORPORATE GOVERNANCE.
The Company has complied with the provisions of Clause 49 of the
Listing Agreement relating to Corporate Governance. Report on Corporate
Governance is annexed. Necessary declaration duly signed by the
Executive Director of the Company to the effect that all the Board
Members and Senior Management personnel have affirmed their compliance
on an annual basis with the Code of Conduct as laid down by the Company
pursuant to the requirements of Clause 49 of the Listing Agreement with
the Stock Exchanges annexed and forms part of this report.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the provisions of Section 217 (2AA) of the Companies Act,
1956, your directors hereby confirm that:
A. in the preparation of the annual accounts all applicable accounting
standards had been followed along with proper explanation relating to
material departures, if any;
B. the Directors had selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year and of the profit of
the Company for that period;
C. the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956, for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
D. the Directors have prepared the annual accounts on a Ãgoing
concern basis.
LISTING OF SHARES
The shares of the company are listed on CSE and BSE.
VOLUNTARY DELISTING OF EQUITY SHARES
Consequent upon the approval of members at the Sixth Annual General
Meeting of the Company held on 27th September, 2001 and in pursuance of
the delisting guidelines issued by SEBI, the Company has applied for
delisting of shares from Ahmedabad
Stock Exchange Ltd. and Jaipur Stock Exchange Ltd. The delisting will
not adversely affect the members of the Company as the equity shares
continue to be listed on Calcutta Stock Exchange Ltd. and Bombay Stock
Exchange Ltd. The Company hereby unconditionally and irrevocably
undertakes to keep indemnified and harmless The Ahmedabad Stock
Exchange Ltd and The Jaipur Stock Exchange Ltd., its officials against
any action, claim, causes, proceedings, demands, whatsoever which may
arise on account of voluntary delisting.
PARTICULARS OF EMPLOYEES
None of the employees of the Company is drawing remuneration exceeding
prescribed limit specified under section 217(2A) of the Companies
Act,1956, read with the Companies (Particulars of Employees) Rules,
1975.
PUBLIC DEPOSITS
The Company has not accepted any deposits from the public within the
meaning of section 58A of the Companies Act, 1956 and the rules made
thereof.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO.
A. CONSERVATION OF ENERGY
Information required to be provided under Section 217(1)(e) of the
Companies Act, 1956, read with the Companies (Disclosure of Particulars
in the Report of the Board of Directors) Rules, 1988 in relation to the
Conservation of Energy and Technological Absorption are currently not
applicable to the Company. However, the company requires energy for its
operations and every effort is made to ensure the optimal use of
energy, avoid misuse and conserve energy.
B. TECHNOLOGY ABSORPTION
1. Specific areas in which R&D carried out by the Company - Not
Applicable
2. Benefits derived as a result of above R & D - Not Applicable
3. Future plan of Action - Not Applicable
4. Expenditure on R&D : -
a) Capital - NIL
b) Revenue - NIL
c) Total - NIL
d) Total R&D expenditure as a percentage of net sales - NIL
Technology Absorption, Adaptation & Innovation:
The Company always keeps a check on global innovation and techniques to
avail the latest technology trends and practices. The Company has not
imported any technology or process in the financial year.
C. FOREIGN EXCHANGE EARNINGS & OUTGO:
The Company has neither had any Foreign Exchange earnings nor any Outgo
during the year under review.
INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY
The Company has installed adequate internal control systems in
combination with delegation of powers and policy guidelines to ensure
optimal utilisation and protection of resources, IT security, accurate
reporting of financial transactions and compliance with applicable laws
and regulations. The control system is also supported by internal
audits and Management reviews with documented policies and procedures:
- The Company has adequate systems of internal control in place to
ensure that assets are safeguarded against loss from unauthorized use
or disposition, and that transactions are authorized, recorded, and
reported correctly.
- Companies internal audit function is empowered to examine the
adequacy, relevance and effectiveness of control systems, compliance
with laws, regulations & policies, plans and statutory requirements.
- The Company also has an exhaustive budgetary control system. Actual
performance is reviewed with reference to the budget by the management
on an regular basis.
- Companys Audit Committee reviews the findings and recommendations of
the internal auditor.
The system is improved and modified continuously to meet changes in
business conditions, statutory and accounting requirements.
SUBSIDIARY
It is reported that the Company has no Subsidiary within the meaning of
Section 4 of the Companies Act, 1956.
INFORMATION TECHNOLOGY
In todays digital networked economy, every company is increasing
dependability on IT to deliver their strategic business objectives for
increasing sales, enhancing operational efficiency, reducing
operational risks and improve productivity. The Company believes that
Information Technology is a source of competitive advantage and has
therefore continued to invest in the same. The company also plans to
install SAP system in the coming year for better control and
management.
SOCIAL COMMITMENT
The Company is fully aware of responsibilities towards its own
employees, their dependent and local community within which the works
are situated and to the people of Durgapur and West Bengal in general.
Our driving objective has been to improve living and working condition
of our workforce and their dependents and society as well.
There has been a constant endeavor to interact with the workers on a
day to day basis and promptly resolve the issues that surface.
SAFETY
The Company has adequate system for Industrial safety. The year under
review continued to be NIL accident year.
ENVIRONMENTAL EFFORTS
The Company is quite alert in providing clean environment on a
continuous basis.
HUMAN RESOURCES AND INDUSTRIAL RELATIONS
As the Company begins to compete in the challenging business
environment of the new millennium, it realises that Human Resources(HR)
are the most valuable assets for the organisation and its them who
always provides the competitive edge to stay ahead.
The Companys strategy for development of HR is to provide them
motivating work environment, recruiting the best talents in industry,
providing challenging goals and by creating a culture for learning and
growth. The Company aims of HR development is not just about acquiring
skills to solve specific problems but also expanding minds to address
problems and opportunities which have not become apparent with full
understanding of cross functional linkage. Continuing personal
development is the constant obligation of all employees and constant
responsibility of all Executives, Managers and Supervisors. The
development and use of human potential is the Company gateway for
continued success in the future.
The relation between the employees, workers and the management were
cordial and an atmosphere of understanding prevailed throughout the
year.
DIRECTORS
Shri P.K.Bhansali, Director of the company retires by rotation at the
forthcoming Annual general Meeting and being eligible, offer himself
for re-appointment.
Brief resume of Director proposed to be re-appointed, nature of their
experience in their functional area, name of the companies in which
they hold directorship and membership/chairmanship of the Board
Committees, as stipulated under Clause 49 of the Listing Agreement with
the stock exchanges forms the part of the Notice.
STATUTORY AUDITORS
M/s. Sarkar Gurumurthy & Associates the auditor of the Company will
retire at the conclusion of this Annual General Meeting and being
eligible as per Section 224 (1B) of the Companies Act, 1956, they have
expressed their willingness for re-appointment. It is proposed to
re-appoint them as auditors for the financial year 2009-10 and fix
their remuneration.
AUDITORS REPORT
Your Directors have no comments on the Auditors Report since the
Report itself is self explanatory.
APPRECIATION
The Board records its sincere appreciation for the valuable support
extended by the Companys Bankers, Financial Institutions and the
Government Agencies. The Board also wishes to thank all its customers /
dealers / sub-dealers and all those associated with the Company. The
Board further conveys cordial thanks to all the employees for their
sincere works and takes this opportunity to thank Shareholders for
their continued confidence reposed in the Management of the Company.
For and on behalf of the Board
Place: Kolkata S.K. Bhansali
Dated: 31st July ,2010 Chairman
Mar 31, 2009
The Directors have great pleasure in presenting the Thirteenth Annual
Report and the Audited Statement of Accounts of the Company for the
year ended 31st March, 2009.
PERFORMANCE IN FINANCIALTERMS
(Rs. In Lakhs)
2008-09 2007-08
NetSales 3873,63 1700.15
Profit before Interest,
depreciation and taxation 184.08 62.41
Interest 103,22 13.99
Depreciation 26.10 21.57
Profit Before Tax 54.68 26.85
Less: Provision for Taxation
including FBT 7.46 3.91
Net Profit 47.22 22.94
Add: Balance Brought
Forward 23.42 0.48
Surplus carried to Balance Sheet 70.64 23.42
Net Worth 773.38 671.74
REVIEW OF OPERATION
The Company has been gradually gearing up its performance level to
consolidate its position in the face of stiff com petition in the
marketwith firm commitment & sustained efforts. The company expects to
maintain persistent growth in the years to come. During the year under
review the Company has achieved sales to the tune of Rs.3874/-lakhs
against Rs.1700/- lakhs in the previous year. The Company was also able
to achieve Operational Profit to Rs. 184 lakhs against Rs. 62 lakhs
last year. Net Profit has also grown double to Rs. 47 lakhs against
Rs. 23 lakhs last year. The Company was able to control Selling and
Administrative Expenses and recorded a decrease of 117% showing better
cost control practices.
PROSPECT IN THE CURRENT YEAR
However during the course of current financial year, the Board has
witnessed an impressive rise in demand powered by accelerated economic
growth, public awareness for usage of commercial cylinders for
commercial application instead of domestic cylinders and accordingly
the Company expects to perform better. The Management has taken
adequate steps to cater the future demand for consolidating its
position in the market. LPG being more economical in comparison with
others fuels and the industry will gain significance not only in the
Eastern Region, but also throughout India. The company has also decided
for setting up more Bottling plant/Auto LPG dispensing stations which
will require substantial investment in future.
A. BOTTLING SEGMENT
The company is currently catering the commercial cylinder market of
Kolkata and adjoining suburbs from its own bottling plant situated at
Durgapur. The Company has already entered into arrangements with
various private sector bottling plants situated at major locations to
cover all major LPG commercial hubs for refilling of "EAST GAS"
Cylinders. This will add to companys presence in Commercial and
Industrial marketing segment. In addition to above the Company is also
planning to set three more Manufacturing Cum Bottling Plants at
strategically best locations to cover West, South and Central India.
B. BULK LPG
The Company expects a good growth in this segment as the prices for
alternate fuel are increasing and the Industrial customers prefer
sustained supplies of fuel which is cheap and eco-friendly. The company
is planning to explore opportunities throughout India as usage of LPG
in Industrial heating processes is growing.
C. AUTO LPG
The company would be the 1" private sector parallel marketer to enter
in this segment in Eastern India in the year, 2009-10 along with IPPL.
The company is also planning to start 100 Auto LPG filling stations
throughout India in coming years.
D. READY MIX CONCRETE
Ready Mix Concrete or RMC is the latest concept of easing out the
operations for a big concreting job. Since the demand for such mixed
concrete is increasing at the rate of more than 75% per year; he
business of putting up RMC plants are upcoming very rapidly. The
increasing competition may hamper hefty initial profits, however first
players will dominate the market without doubt. Keeping the same in
mind East Gas has entered into this segment as well and expects a great
growth in this line in upcoming days.
E.OTHERAREAS
The Company is in active talks with Indias leading gas companies for
business relationships and is keeping close watch to enter into the
City Gas Distribution, Coal Bed Methane (CBM) and Compressed Natural
Gas (CNG) business.
DIVIDEND
The Board believes that it will be prudent for the company to conserve
resources in view of future expansion programs inline for the coming
year, which will enhance the profitability to a great extent. Hence,
your directors are not recommending any dividend for the Financial Year
2008-09.
ISSUE OF SHARE CAPITAL
There is no further issue of share capital during the year.
MANAGEMENT DISCUSSION ANDANALYSIS
Pursuant to clause 49 of the Listing agreement a separate report on
Management Discussion and Analysis, forming part of this Annual Report,
is annexed.
CORPORATE GOVERNANCE
The Company has complied with the provisions of Clause 49 of the
Listing Agreement relating to Corporate Governance. Report on Corporate
Governance is annexed. Necessary declaration duly signed by the
Executive Director of the Company to the effect that all the Board
Members and Senior Management personnel have affirmed their compliance
on an annual basis with the Code of Conduct as laid down by the Company
pursuant to the requirements of Clause 49 of the Listing Agreement with
the Stock Exchanges annexed and forms part of this report.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the provisions of Section 217 (2AA) of the Companies Act,
1956, your directors hereby confirm that:
A. in the preparation of the annual accounts all applicable accounting
standards had been followed along with proper explanation relating to
material departures, if any;
B. the Directors had selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year and of the profit of
the Company for that period;
C. the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956, for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities;
D. the Directors have prepared the annual accounts on a going
concernbasis.
LISTING OF SHARES
The shares of the company are listed on CSE and BSE.
VOLUNTARY DELISTING OF EQUITY SHARES
Consequent upon the approval of members at the Sixth Annual General
Meeting of the Company held on 27* September, 2001 and in pursuance of
the delisting guidelines issued by SEBI, the Company has applied for
delisting of shares from Ahmedabad Stock Exchange Ltd. and Jaipur Stock
Exchange Ltd. The delisting will not adversely affect the members of
the Company as the equity shares continue to be listed on Calcutta
Stock Exchange Ltd. and Bombay Stock Exchange Ltd. The Company hereby
unconditionally and irrevocably undertakes to keep indemnified and
harmless The Ahmedabad Stock Exchange Ltd and The Jaipur Stock Exchange
Ltd., its officials against any action, claim, causes, proceedings,
demands, whatsoever which may arise on account of voluntary delisting.
PARTICULARS OF EMPLOYEES
None of the employees of the Company are drawing remuneration exceeding
prescribed limit specified under section 217(2A) of the Companies Act,
1956, read with the Companies (Particulars of Employees) Rules, 1975.
PUBLIC DEPOSITS
The Company has not accepted any deposits from the public within the
meaning of section 58Aof the Companies Act, 1956 and the rules made
thereof.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
A. CONSERVATION OF ENERGY
Information required to be provided under Section 217(1)(e) of the
Companies Act, 1956, read with the Companies (Disclosure of Particulars
in the Report of the Board of Directors) Rules, 1988 in relation to the
Conservation of Energy and Technological Absorption are currently not
applicable to the Company. However, the company requires energy for its
operations and every effort is made to ensure the optimal use of
energy, avoid misuse and conserve energy.
B. TECHNOLOGY ABSORPTION
1. Specific areas in which R&D carried out by the Company - Not
Applicable
2. Benefits derived as a result of above R&D- Not Applicable
3. Future plan of Action - Not Applicable
4. Expenditure on R&D - a)Capital-NIL
b) Revenue-NIL
c) Total-NIL
d) Total R&D expenditure as a percentage of net sales - NIL
Technology Absorption, Adaptation & Innovation:
The Company always keeps a check on global innovation and techniques to
avail the latest technology trends and practices. The Company has not
imported any technology or process in the financial year.
C. FOREIGN EXCHANGE EARNINGS & OUTGO:
The Company has neither had any Foreign Exchange earnings nor any Outgo
during the year under review.
INTERNAL CONTROL SYSTEMS& THEIR ADEQUACY
The Company has installed adequate internal control systems in
combination with delegation of powers and policy guidelines to ensure
optimal utilisation and protection of resources, IT security, accurate
reporting of financial transactions and compliance with applicable laws
and regulations. The control system is also supported by internal
audits and Management reviews with documented policies and procedures:
- The Company has adequate systems of internal control in place to
ensure that assets are safeguarded against loss from unauthorized use
or disposition, and that transactions are authorized, recorded, and
reported correctly.
- Companies internal audit function is empowered to examine the
adequacy, relevance and effectiveness of control systems, compliance
with laws, regulations & policies, plans and statutory requirements.
- The Company also has an exhaustive budgetary control system. Actual
performance is reviewed with reference to the budget by the management
on an regular basis.
- Companys Audit Committee reviews the findings and recommendations of
the internal auditor. The system is improved and modified continuously
to meet changes in business conditions, statutory and accounting
requirements.
SUBSIDIARY
It is reported that the Company has no Subsidiary within the meaning of
Section 4 of the Companies Act, 1956.
INFORMATION TECHNOLOGY
In todays digital networked economy, every company is increasing
dependability on IT to deliver their strategic business objectives for
increasing sales, enhancing operational efficiency, reducing
operational risks and improve productivity. The Company believes that
Information Technology is a source of competitive advantage and has
therefore continued to invest in the same. The company also plans to
install SAP system in the coming year for better control and
management.
SOCIAL COMMITMENT
The Company is fully aware of responsibilities towards its own
employees, their dependent and local community within which the works
are situated and to the people of Durgapur and West Bengal in general.
Our driving objective has been to improve living and working condition
of our workforce and their dependents and society as well. There has
been a constant endeavor to interact with the workers on a day to day
basis and promptly resolve the issues that surface.
SAFETY
The Company has adequate system for Industrial safety. The year under
review continued to be NIL accident year.
ENVIRONMENTAL EFFORTS
The Company is quite alert in providing clean environment on a
continuous basis.
HUMAN RESOURCES AND INDUSTRIAL RELATIONS
As the Company begins to compete in the challenging business
environment of the new millennium, it realises that Human Resources(HR)
are the most valuable assets for the organisation and its them who
always provides the competitive edge to stay ahead.
The Companys strategy for development of HR is to provide them
motivating work environment, recruiting the best talents in industry,
providing challenging goals and by creating a culture for learning and
growth. The Company aims of HR development is not just about acquiring
skills to solve specific problems but also expanding minds to address
problems and opportunities which have not become apparent with full
understanding of cross functional linkage. Continuing personal
development is the constant obligation of all employees and constant
responsibility of all Executives, Managers and Supervisors. The
development and use of human potential is the Company gateway for
continued success in the future.
The relation between the employees, workers and the management were
cordial and an atmosphere of understanding prevailed throughout the
year.
DIRECTORS
Mr. B.S. Baid , Director of the company retires by rotation at the
forthcoming Annual general Meeting and being eligible, offer himself
for re- æ appointment.
Brief resume of Director proposed to be re-appointed, nature of their
experience in their functional area, name of the companies in which
they hold directorship and membership/chairmanship of the Board
Committees, as stipulated under Clause 49 of the Listing Agreement with
the stock exchanges forms the part of the Notice.
STATUTORY AUDITORS
M/s. Sarkar Gurumurthy & Associates the auditor of the Company will
retire at the conclusion of this Annual General Meeting and being
eligible as per Section 224 (1B) of the Companies Act, 1956, they have
expressed their willingness for re-appointment. It is proposed to
re-appoint them as auditors for the financial year 2009-10 and fix
their remuneration.
AUDITORS REPORT
Your Directors have no comments on the Auditors Report since the
Report itself is self explanatory.
APPRECIATION
The Board records its sincere appreciation for the valuable support
extended by the Companys Bankers, Financial Institutions and the
Government Agencies. The Board also wishes to thank all its customers /
dealers / sub-dealers and all those associated with the Company. The
Board further conveys cordial thanks to all the employees for their
sincere works and takes this opportunity to thank Shareholders for
their continued confidence reposed in the Management of the Company.
For and on behalf of the Board
Place: Kolkata S.K. Bhansali
Dated: 31st July 2009 Chairman