Mar 31, 2014
Dear members,
The Directors have pleasure in presenting the Report on the business
and operations of the Company together with the Audited Accounts for
the year ended 31st March, 2014.
1. FINANCIAL RESULTS: (Amt. in Rupees)
Year Ended Year Ended
Particulars March 31, 2014 March 31, 2013
Turnover 19,85,91,743.70 42,80,01,884.00
Other Income 46,85,096.81 3,63,36,805.00
Expenditure 25,51,72,026.98 46,30,83,301.00
Profit(Loss) Before Taxes (5,19,75,367.86) 12,55,388.00
Provision for Taxes
Current Tax NIL 2,39,200.00
Deferred Tax NIL 4,30,550.00
Profit after Tax available for (5,19,75,367.86) 5,85,638.00
appropriation
Dividend NIL NIL
Balance carried forward to Balance (5,19,75,367.86) 5,85,638.00
Sheet
2. DEPOSITS:
The Company has not accepted any deposit from Public. Therefore
provisions of section 58(A) of Companies Act, 1956 and Companies
(Acceptance of Deposits) Rules, 1975 are not applicable to the Company.
3. DIVIDENDS:
In the view of long run interest of the company, your Directors do not
recommend any dividend.
4. INSURANCE:
Movable and fixed Assets are adequately insured.
5. CORPORATE GOVERNANCE:
The Company has been following the principles and practices of good
Corporate Governance and has ensured compliance of the requirements
stipulated under Clause - 49 of the Listing Agreement with the Stock
Exchanges.
A detailed report on Corporate Governance along with Certificate issued
by Practicing Chartered Accountants in terms of Clause - 49 of the
Listing Agreement is attached which forms part of this Report.
6. MANAGEMENT DISCUSSION AND ANALYSIS:
A report on Management Discussion and Analysis forms part of this
Report and it deals with the Business, Operations and Financial
Performance etc.
7. PARTICULARS OF EMPLOYEES:
The company did not employ anybody drawing remuneration of Rs.60,
00,000/-or more per annum or Rs.5, 00,000/- or more per month and hence
the question of providing information under section 217(2A) of the
companies Act, 1956 does not arise.
8. DIRECTORS:
Mr. Chandrakant Gaikwad, Directors will retire by rotation at the
ensuing Annual General Meeting and being eligible, offer themselves for
reappointment. Your Directors recommend their reappointments for your
approval.
Mrs.Ami Jigar Motta, Mr. Nilesh Shivram Mistry and Mr. Ketan Babubhai
Patel are being proposed to be re-appointed as Independent Directors in
terms of the applicable provisions of the Companies Act, 2013. The
Board recommends their re-appointment.
9. THE CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNING/OUTGO:
Information pursuant to Section 217(1) (e) of the Companies Act, 1956
read with Rule 2 of the Companies (Disclosure of Particulars in the
Report of Board of Directors) Rules, 1988 regarding conservation of
Energy, Technology Absorption and Foreign Exchange Earnings and Outgo
is provided separately as an annexure to the Director''s Report.
10. DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to the provision of Sub-Section (2AA) of section 217 of the
companies Act, 1956 your directors confirm:
I. That in the preparation of the annual accounts for year ended on31st
March, 2014, the applicable accounting standards had been followed with
no departures there from;
II. That 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 ended on
31st March, 2014 and of the loss of the Company for that period;
III. That 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. That the Directors had prepared the annual accounts for the year
ended on 31st March, 2014 on a going concern basis.
11. AUDITORS:
M/s. Sheetal Samriya & Associates, Chartered Accountants the present
Auditors of the Company have furnished a certificate regarding their
eligibility for re- appointment. You are requested to appoint auditors
of the company and fix their remuneration.
12. AUDITORS REPORT:
There are no qualifications or adverse remarks in the Auditors'' Report
which requires any clarifications / explanations. The notes to accounts
forming part of the financial statements are self explanatory.
13. ACKNOWLEDGEMENT:
The Board wishes to thank the Employees, Business partners, Bankers,
Clients and shareholders, for their continued support and for faith
they have respond in the Company.
For, Prabhav Industries Limited
Date: 30/05/2014 SD/-
Place: Vadodara Jayesh R. Thakkar
Chairman
Mar 31, 2011
To The Members of PRABHAV INDUSTRIES LIMITED
The Directors are pleased to present the Annual Report of your Company
Along with the Audited Financial Statements for the year ended 31st
March, 2011.
FINANCIAL RESULTS:
Key aspects of your Company's financial performance for the year 2010-
11 are tabulated below:
Particulars As on As on
31st March 2011 31st March 2010
(Amount in Rs) (Amount in Rs)
Income 84,11,40,587 2,95,35,648
Expenses 83,16,32,020 2,80,56,135
Net Profit before
Depreciation and Tax 95,08,567 14,79,512
Depreciation 56,52,475 4,73,387
Net Profit before Tax 38,56,092 10,06,126
Provision for Taxation 21,19,400 93,089
Net Profit after Tax 17,36,692 9,13,037
Earnings Per Share 0.04 0.02
OPERATIONAL REVIEW:
After witnessing a worldwide downturn in all spheres of business
including in the steel industry in second half of 2008-09, your company
remained focused on its fundamentals including expansion plans. It was
only the result of the concerted and collective action undertaken by
your Company's Management that your Company could achieve such an
handsome growth in revenues during the year under review.
The revenues of the Company improved significantly across its
businesses with an upshot in the gross revenue to Rs. 84,11,40,587 as
compared to Rs. 2,95,35,648 in the preceding year, thus registering an
impressive growth of about 28 times.
Further it has always been your Company's endeavor to continually
uphold the interest of its stakeholders and this can be reflected from
the increase in the bottom line and the earnings per
share of your Company. The Bottom line of your Company recorded an
increase of about 90% as compared to the preceding year. Further the
Earnings per share of your Company's Shares have doubled as compared to
the preceding year, thus resulting in the overall accumulation of the
Shareholders wealth.
The Directors of your Company are Optimistic towards the future plans
of the Company and are confident of achieving higher margins in the
years to come.
FUTURE OUTLOOK:
Your Company functions in two business segments namely, Manufacturing
of Steel Products i.e. M.S. Ingot from M.S. Scrap and Trading in
upstream as well as downstream metal products.
The existing business segments enable your company to hedge as well as
capitalize on volatility in the raw material prices. The trading
division has facilitated us to maintain our profitability in this
strenuous phase of uncertainty and anxiety.
In the course of balancing the existing business activity your company
has acquired deep insight of commodities and capital markets and thus
the Board of Directors considers it desirable to bank on its expertise
and commence the Investment Business along with the main objects of the
Company.
The core activities of the Investment division shall include acquiring
and dealing in various financial securities such as shares, debentures,
bonds, obligations, securities issued by various Private as well as
statutory authorities.
The aforesaid resolution along with the necessary explanatory
statement, for commencing the Investment Business is proposed in the
Notice of this Annual General Meeting and the said notice forms the
part of this Annual Report.
We commend the resolution for your approval.
DIVIDEND:
After considering the financial results for the financial year, your
Directors are of the opinion that it is prudent that no dividend be
declared for the year under review so that the profits earned in the
financial year can be ploughed back and utilized towards various growth
and other expansion plans.
AUDIT COMMITTEE:
The Company has duly constituted its Audit Committee pursuant to the
provisions of Section 292A of the Companies Act, 1956 & Clause 49 of
the Listing Agreement.
Presently the Audit Committee of your Company comprises of Mr. Chirag
Gada, Non-Executive Independent Director as Chairman of the Committee,
Mr. Ketan Patel, Non-Executive Independent Director and Mr. Jayesh
Thakkar, Managing Director as the Members of the Committee.
Hence the Company has maintained the requisite combination of
Independent & Non-Independent Directors in the Composition of the Audit
Committee.
It is further stated that the Board of Directors of the Company have
accepted all the recommendations of the Audit Committee.
SECRETARIAL AUDIT REPORT:
As a measure of Good Corporate Governance practice, the Board of
Directors of the Company has obtained a Certificate from Practicing
Company Secretary on the basis of Secretarial Audit of the Company.
This is to certify that the Company has complied with all the
applicable provisions of the Companies Act, 1956, Depositories Act,
1996, Listing Agreements with the Stock Exchanges, Securities Contracts
(Regulation) Act, 1956 and all the Regulations and Guidelines of SEBI
as applicable to the Company, including the Securities and Exchange
Board (Substantial Acquisition of Shares and Takeover) Regulations,
1997 and the Securities and Exchange Board of India (Prohibition of
Insider Trading) Regulations, 1992.
ACCEPTANCE OF FIXED DEPOSITS:
The Company has not accepted any fixed deposits from general public
within the purview of Section 58A, of the Companies Act, 1956, during
the year under review.
CHANGES IN COMPOSITION BOARD OF DIRECTORS:
Directors Retiring by Rotation
In accordance with the provisions of section 257 the Companies Act,
1956, Mr. Vinod Shinde and Mr. Chirag Gada, Directors of your Company
retire by rotation at the forthcoming Annual General Meeting and being
eligible, offer themselves for re-appointment.
The Board wishes to place on record their appreciation for the services
rendered by them as the Directors of the Company.
The Proposals regarding the re- appointment of the aforesaid Directors
are placed for your approval.
Your Directors commends their appointment for their approval.
None of the Directors, except Mr. Vinod Shinde and Mr. Chirag Gada are
interested or concerned in the resolution.
Re- appointment of Additional Directors
The Board of Directors of your Company had appointed Mr. Ketan Patel,
Mrs. Ami Motta and Mr. Nilesh Mistry as the additional Directors to
hold office till the commencement of the Annual General Meeting.
The Board wishes to place on record their appreciation for the services
rendered by them as the Directors of the Company and commends their
appointment for your approval.
The notice proposing their candidature as the directors of the Company
has been already received by the Company.
None of the Directors, except Mr. Ketan Patel, Mrs. Ami Motta and Mr.
Nilesh Mistry are interested or concerned in the aforesaid resolution.
Re - appointment of Managing Directors
Mr. Jayesh Thakkar was appointed as a Managing Director of the Company
on 23rd November, 2006 for a period of 5 years. Pursuant to this, his
Tenure as a Managing Director shall cease on 22nd November, 2011.
He has played a pivotal role in steering your organization and making
it accomplish higher horizons of success. It was only under his
leadership that your Company could write its success story and reach
the place where it stands today.
Your Company wishes to take on record its appreciation for the valuable
services rendered by him and considers it as a pleasure to have his
valued association with the Company for another period of 5 years,
subject to the approval of the Members.
The relevant resolution proposing his re- appointment has been included
in the Notice to the annual report.
Your are requested to accord your consent to his re- appointment.
A brief profile of all the aforesaid Directors is provided under
"Schedule A" of this report. DISCLOSURE OF CHANGES IN THE CAPITAL
STRUCTURE OF THE COMPANY:
The present Capital structure of the Company comprises of Rs.
46,08,91,000 divided 4,60,89,100 fully paid Equity Shares of Rs. 10/-.
Pursuant to the decisions taken by the Board in their Meeting held on
27th August, 2010 and the Annual General Meeting held on 30th
September, 2010, the Board of Directors in their Meeting held on 18th
October, 2010 allotted 25,00,000 (Twenty Five Lacs) Convertible Equity
Warrants to Cameron Realty Private Limited, an entity forming part of
the Promoter and Promoter Group, on a Preferential Basis.
Each Warrant entitles the holder to apply for and be allotted one
equity share of the Company of par value of Rs. 10/- each, at a price
of Rs. 102/- per Equity Share, at any time within 18 months from the
date of allotment of Warrants, i.e., within 17th April, 2012.
During the year under review, the Warrant holder did not exercise the
option to convert any of the Warrants held by it into Equity Shares of
the Company.
Post Conversion the Paid- up Share Capital of the Company shall stand
at Rs. 48,75,91,000 divided into 4,87,59,100 fully paid Equity Shares
of Rs. 10/-.
PROCEEDS OF PREFERENTIAL ALLOTMENT:
During the year, your Company allotted 25,00,000 Convertible Equity
Warrants to Cameron Realty Private Limited, an entity forming part of
the Promoter and Promoter Group, on a Preferential Basis.
The proceeds received towards the subscription of Warrants are being
utilized for the purpose of meeting the working capital requirements of
the Company
AUDITORS:
The Company's Auditors M/s. N.R. Parikh & Co. retire at the conclusion
of the ensuing Annual General Meeting and being eligible offer
themselves for reappointment.
Your Company has received confirmation from the Auditors to the effect
that their reappointment, if made would be within the limits prescribed
under Section 224(1B) of the Companies Act, 1956 and that they are not
disqualified for reappointment within the meaning of Section 226 of the
said Act.
You are requested to appoint auditors to hold such office from this
Annual General Meeting up to the conclusion of next Annual General
Meeting and fix their remuneration.
AUDITORS REPORT:
The Statutory Auditors' Report on the Accounts of the Company for the
financial year ended 31st March, 2010 does not does not contain any
qualification.
Further the observations furnished by the Auditors in their report is
self- explanatory and do not call for any further comments.
PARTICULARS OF EMPLOYEES:
During the year under review, no employee of the Company was in receipt
of remuneration exceeding the sum prescribed under section 217(2A) of
the Companies Act 1956, read with the Companies (Particulars of
Employees) Rules 1975, hence the requirement for furnishing a separate
disclosure does not arise.
CORPORATE GOVERNANCE:
Your Company has documented internal governance policies and put in
place a formalized system of Corporate Governance which sets outs the
structure, processes and practices of governance within the Company.
A separate section on Corporate Governance forming part of the Annual
Report and a certificate from the Statutory Auditor confirming
compliance of Corporate Governance norms as stipulated in Clause 49 of
the Listing Agreement with the Stock Exchanges is included in the
Annual Report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
Management Discussion and Analysis Report for the year under review, as
stipulated under clause 49 of the Listing Agreement with the Stock
Exchanges in India, is presented in a separate section forming part of
the Annual Report.
CORPORATE SOCIAL RESPONSIBILITY:
Corporate Social Responsibility (CSR) is the responsibility of an
organization for the impacts of its decisions and activities on
society, the environment and its own prosperity. For any organization,
CSR begins by being aware of the impact of its business on society.
Parham's Social Objective is synonymous with Corporate Social
Responsibility (CSR). Apart from the business of manufacture of Steel
Products, the objective of the company is to conduct business in ways
that produce social, environmental and economic benefits to the
communities in which it operates.
Further your Company also reaffirms its commitment to contribute
towards a clean sustainable environment and continually enhancing its
environmental performance as an integral part of its business
philosophy and values.
HUMAN RESOURCE MANAGEMENT REVIEW:
Your Company has always believed in the ideology of achieving
excellence through investing in people and technology simultaneously
and thus it continues to work for the development and realization of
best potential of its people. To promote motivational climate and
achieve growth, your Company has continued to undertake efforts for
optimal utilization of manpower with focus on improvement in their
productivity.
Further the efforts were also initiated for promoting better employee
participation at all the levels. Thus the HR initiatives undertaken
mainly focused on building teams with wider spectrum with reference to
skill and knowledge.
DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956 with respect to Directors responsibility Statement, it is
hereby confirmed that:
In the preparation of the accounts for the Financial Year ended 31st
March, 2011; the applicable Accounting Standards have been followed
along with proper explanation relating to material departures.
The Directors have selected such Accounting Policies and applied them
consistently and made judgments and estimates that were reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company at the end of the Financial Year and the profit of the
Company for the year under review;
The Directors have taken proper and sufficient care for the maintenance
of the 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;
The Directors have prepared the Accounts for the Financial Year ended
31st March, 2011 on a going concern basis.
ENTERPRISE RISK MANAGEMENT:
Enterprise Risk Management (ERM) policy has been framed for
identification of key risk areas and formulates appropriate risk
mitigation plans for taking corrective action in a time bound manner.
DISCLOSURE OF MATERIAL CHANGES SINCE THE END OF THE FINANCIAL YEAR
ENDED 31ST MARCH, 2011
There has not been any material change in the nature of business or
operations of the Company since the end of the financial year ended
31st March, 2011 till the date of this Annual Report.
CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY
ABSORPTIONS AND FOREIGN EXCHANGE EARNINGS AND OUTGO:
Information pursuant to Section 217(1) (e) of the Companies Act, 1956
read with Rule 2 of the Companies (Disclosure of Particulars in the
Report of Board of Directors) Rules, 1988 regarding conservation of
Energy, Technology Absorption and Foreign Exchange Earnings and Outgo
is provided separately as an annexure to the Director's Report.
ACKNOWLEDGEMENT:
Your Directors wish to place on record their gratitude for the
continued support and patronage rendered by the Government of India,
various State Government departments, Financial Institutions, Banks and
various stakeholders, such as, shareholders, customers and suppliers,
among others. The Directors also commend the continuing commitment and
dedication of the employees at all levels, which has been critical for
the Company's success. The Directors look forward to their continued
support in future.
Registered Office: By Order of the Board of Directors
902, Galav Chambers, Sd/-
opp. Sardar Patel Statue,
Sayaji Gunj, Vadodara -390 005 (Jayesh Thakkar)
Chairman and Managing Director
Place: Vadodara
Date: 1st September, 2011.
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