Mar 31, 2010
The Directors have pleasure in presenting the 20th Annual Report for
the financial year ended 31st March, 2010.
FINANCIAL RESULTS (Rs In Lacs)
2009-2010 2008-2009
Sales & other Income 9912.79 13130.72
Profit/(Loss) before Interest,
Depreciation (894.20) (255.78)
& Tax (PBIDT)
Less : Interest & Financial Charges 273.08 231.03
Cash Profit(Loss) (1167.28) (486.81)
Depreciation 78.64 70.12
Profit/(Loss) before Tax (PBT) (1245.92) (556.93)
Provision for Fringe Benefit Tax 0.00 1.16
Provision for Current Tax 0.00 0.00
Provisions for Deferred Tax Liability
(+)/Assets(-) 246.45 -137.95
Provision for Income Tax (Earlier Years) 0.00 -0.88
Profit/(Loss) after Tax (PAT) (1492.37) (419.26)
PERFORMANCE AND REVIEW
As the un-stability of global market has badly hit the oil industry
across the nation and your company is also one of the victims of said
un-stabi!ity. Due to adverse local market conditions and volatility in
global market, the year under review was of poor performance for the
Company as the turnover of company declined to Rs.99.12 Crores as
compared to Rs 131 30 Crores in the last year and the losses mount up
to Rs 14.92 crores during the year as compared to Rs.4 .19 crores
during the last year.
FUTURE PROSPECTS
Your Directors are exploring avenues to over come the present situation
and are instrumental in arranging some sort of amalgamation, joint
venture or collaboration to bring the company on track. One of the
biggest problems for the oil refinery unit like us is lesser ability to
compete with the units operating at the port areas where due to no or
lesser transportation cost, the total cost of refining is the lower and
these units enjoy an edge in refining at low gost and selling the
material at more competitive rates. However, after some arrangement and
with the operational of plant at full capacity, your company would
certainly be able to get rid of this situation.
The company had recently added the capacities of refining and now it is
having total capacities Of 750 MT per day, but it is short of funds and
working capital. Once these capacities will be fully utilized the
economies of scale will happen which will put the company at par with
other competing units Besides, if your company is able to bring the
material through Railway in one go then it wouldbe having an edge over
the port based units.
DIVIDEND
Keeping in view the present constraints, Your Directors express their
inability to recommend any dividend for the year under review.
PUBLIC DEPOSITS
During the year under review, the Company has accepted the deposits
within the meaning of Section 58A of the Companies Act, 1956 and the
rules made .there-under and complied with the provisions of section 58A
and 58AA of the Companies Act, 1956 read with the Companies (Acceptance
of Deposits) Rules, 1975 with regard to the deposits accepted from the
public.
DIRECTORS
Sh Jatinder Singh and Sh Varinder Kumar, Director (Works) are retiring
by rotation at the ensuing Annual General Meeting and being eligible
offer themselves for re-appointment.
DIRECTORS RESPONSIBILITY STATEMENT
The Directors would like to assure the Members that the financial
statements for the year under review, confirm in their entirety to the
requirements of the Companies Act, 1956. Hence pursuant to the
requirement under Section 217{2AA) of the Companies Act, 1956 with
respect to the Directors Responsibility Statement, it is hereby
confirmee:
a. That in the preparation of accounts for the financial year ended
31st March,2010, the applicable accounting standards have been followed
along with proper explanation relating to material departures.
b. That the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
loss for that period.
c. That 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. That the Directors have prepared the annual accounts for the
financial year ended on 31st March, 2010 on a going concern basis.
LISTING OF SECURITIES
The Equity Shares of the Company are listed at the following Stock
Exchanges.
1. The Delhi Stock Exchange Limited, New Delhi
2. The Bombay Stock Exchange Limited, Mumbai
3. The Ludhiana Stock Exchange Limited, Ludhiana
The Company has paid the listing fees to above Stock Exchange(s) for
the financial year 2010-11.
DEPOSITORY SYSTEM
Your Company had connectivity with both the Depositories i.e. National
Securities Depository Limited (NSDL) and/or Central Depository Services
Limited (CDSL) to facilitate the holding and trading of securities in
electronic form. As on 31s1 March, 2010, 85.07% of the equity share
capital of the company has been demateriaiized. The Company had already
paid the Annual Custodian Fees to the NSDL and CDSL. Further as per
SEBI circular NO. D & CC/FITTC/CIR- 15/ 2002 dated 27.12.2002, the
Company had its Registrar namely M/s Link Intime India Private Limited
formerly known as Intime Spectrum Registry Limited, A-40, 2nd Floor,
Naraiana Industrial Area, Phase-ll, New Batra Banquet Hall, New
Delhi-110 028 for Share Transfer and Electronic Connectivity.
Accordingly, all the Shareholders, Investors, Member of the Stock
Exchanges, Depository Participants and all other concerned are
requested to send all communications in respect of Share Transfer,
Demat/ Remat etc. to our said Registrar. In case, any query/complaint
remains unresolved with our Registrar, please write to the Company
Secretary of the Company at the Registered Office/Corporate Office &
Works of the Company.
ADEQUACY OF INTERNAL CONTROL
The Company has a proper and adequate system of internal control, to
ensure that all assets are safeguarded, properly utilized and protected
against loss from un-authorized use or disposition and that
transactions are authorized & recorded by the Accounts Department
properly and reported to the Audit Committee/Board correctly.
AUDIT COMMITTEE
The constituent members of the Audit Committee are Sh. R. C. Singal,
Sh. Jatinder Singh and Sh. Sahil Bansal. On the resignation of Sh.
Neeraj Uppal from the services of company, CA Sh. Sumit Goel Manager
(Accounts) has been charged by the Board for complying with Section 209
to 212 of the Companies Act, 1956 in relation to preparation and
finalization of Accounts of the Company. Sh. R.G. Singal is the
Chairman of the said Committee. During the year under review the
Committee had its five meetings.
SHARE TRANSFER CUM INVESTOR GRIEVANCE RE-DRESSAL COMMITTEE
The Committee looks into transfer, transmission, split, duplicate,
re-mat and consolidation of shares and also monitor the re-dressa! of
shareholders complaints. However, all-the matters pertaining to the
share transfer and related activities are handled by our Registrar and
Share Transfer Agent M/s Link Intime India Private Limited formerly
known as Intime Spectrum Registry Limited, New Delhi. The share
transfer requests are processed by them and a transfer register is sent
to the company for approval once in fortnight.
REMUNERATION COMMITTEE
The present Committee comprises of Sh R.C. Singal as its Chairman and
Dr. S.K.Suri and Sh. Jatinder Singh as Members. The Broad terms of
reference of the remuneration committee are to approve/recommend to the
Board the remuneration including perquisites, allowances to be paid to
companys whole time directors. The committee consists of only
non-executive independent directors.
AUDITORS
M/s P.C Goyal & Co., Chartered Accountants, are liable to retire as
statutory auditors of the Company at the ensuing Annual General Meeting
and being eligible, offer themselves for re-appointment and they have
furnished a certificate as required under Section 224(1-B) of the
Companies Act, 1956.
AUDITORS REPORT
The Auditors Report on the Accounts of the Company is self-explanatory
and do not require any comments.
COST AUDITORS
The Cost Accounts for the Financial Year 2009-2010 have been audited by
M/s Pawan & Associates, Cost Accountants, EE 255, Panj Peer, Bagh Karam
Baksh, Jalandhar City (Pb). The Cost Audit Report will be submitted to
the Central Govt, within the stipulated time.
Further, the Board, subject to the approval of the Central Government,
has re-appointed M/s J. Verma & Associates, Cost Accountants, 2nd
Floor, Bajaj Building, Up-stairs Dr Bowry Clinic, Bazar Panj Peer, Near
Bhagat Singh Chowk, Jalandhar City (Pb) as the Cost Auditor for
auditing of the costing accounts of the company for the Financial Year
2010-11 on receiving of requisite certificate under section 224 (1-B)
of the Companies Act, 1956.
CORPORATE GOVERNANCE.
Pursuant to clause 49 of the listing agreement, a Report on Corporate
Governance and a Management Discussion and Analysis Report are included
in the Annual Report along-with CEO & CFO Certificates. A certificate
from the auditors of the company is annexed to this report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The detailed information as required under 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 is
appended hereto and form part of this Report.
HUMAN RESOURCES
The Company is always following the policy of creating a healthy
environment and work culture resulting into harmonious inter-personnel
relations. Industrial Relations and work atmosphere remained very
cordial throughout the year
PARTICULARS OF EMPLOYEES
Particulars of employees in accordance with provisions of Section 217
(2A) of the Companies Act, 1956 read with the Companies (Particulars of
Employees) Rules 1975, as amended, are not given as none of employees
qualify for such disclosure.
ACKNOWLEDGEMENTS
The Board of Directors of the Company wish to place on record their
sincere thanks and appreciation to the team of Executives, Staff
Members and Workers at all levels for their cooperation and
contribution to the . operations of the company. Your directors also
acknowledge with gratitude the co-operation, and support received from
the Bankers, Central and State Government Authorities, Business
Constituents and also place on record their sincere thank to the
shareholders of the Company for their continued support, cooperation
and confidence in the Management of the Company.
FOR AND ON BEHALF OF THE BOARD
Sd/- Sd/-
PLACE : LUDHMNA SANJEEV BANSAL SAHIL BANSAL
DATE: 12.08.2010 MANAGING DIRECTOR DIRECTOR (FINANCE)
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