Mar 31, 2014
The Members of
S.B. & T INTERNATIONAL LIMITED
The Directors present with pleasure the Twenty Seventh Annual Report
together with the Audited Statement of Accounts of the Company for the
year ended March 31, 2014.
1. FINANCIAL RESULTS
(INR In Million)
Particulars 2013-2014 2012-2013
Gross Profit (32.08) (48.67)
Less: Depreciation 1.49 1.75
Profit before Tax (33.58) (50.41)
Provision for Tax - Current NIL NIL
Deferred NIL NIL
Profit after Tax (33.58) (50.41)
Add: Balance brought forward NIL NIL
Profit available for appropriation (33.58) (50.41)
Appropriations NIL NIL
Proposed Final Dividend NIL NIL
Corporate Dividend Tax NIL NIL
Balance carried to Balance Sheet (33.58) (50.41)
2. OPERATIONS
Turnover of the Company is INR. 126.82 million for the year ended 31st
March, 2014 as compared to INR 65.27 million for the year ended 31st
March, 2013.
3. DIVIDEND
In order to conserve resources, no dividend has been declared for the
financial year 2013 - 2014.
4. MANAGEMENT DISCUSSION AND ANALYSIS REPORT
a) INDUSTRY STRUCTURE AND DEVELOPMENTS
The Jewellery Industries is going through a slow down and export have
shrunk and even the domestic market is witnessing a slow down.
b) SWOT ANALYSIS OF INDIAN GEMS & JEWELLERY INDUSTRY STRENGTHS:
About one million craftsmen are associated with this Industry.
Their skills can be utilized for designing and making modern Jewellery.
Availability of abundance of cheap and skilled labour in India.
Presence of excellent marketing network spread across the world.
Supportive government Industrail / EXIM Policy.
WEAKNESSES:
Small firms lacking technological / export information expertise.
Low Productivity compared to labour in China, Thailand and
Srilanka.
âAs the major raw material requirements need to be imported,
companies normally stock huge quantities of inventory carrying costs.
OPPORTUNITIES:
The jewellery industry is growing at a whopping rate with the boom
in the domestic and exports of Indian jewellery, the shining materials
of India brings more sparkle to the economy.
Gems and jewellery export stands the second major foreign exchange
earner for the country. India has many natural advantages to emerge as
Gems & Jewellery hub of the world.
India has the largest and the best artisan force for designing and
crafting the jewellery in the world. There is considerable scope of
value addition in terms of capacity building at the domestic front,
quality management and professionalism.
India is the world''s largest manufacturing centre for gems and
jewellery and the Industry contributes over 12% to the total export
earnings of the country and employs highly skilled 1.5 million workers.
The gems and jewellery industry is a major exchange exchequer as major
portion (around 80%) of its turnover was contributed by exports.
Diamonds contribute to nearly 80% of the entire turnover and of this
industry and hence many times the terms âÂÂgems and jewellery
industryâ and âÂÂdiamond industryâ are used as synonyms.
THREATS:
Although India currently enjoys dominance in the world''s cut and
polished diamonds market, China may emerge as a viable rival, if not in
the near term, certainly in the longer term. An increasing number of
diamond processors from Israel and Belgium, and even India, are setting
up facilities in China for a variety of reasons, according to the
report on the Indian gems and jewellery industry. The primary reasons
for these are:
The labour force there, like in India, is cheap and disciplined.
High economic growth in China over the past decade has resulted in
a significant increase in potential consumers in the high - income
segment within the country.
Quality of workmanship and technological development (technical
expertise) are the other areas where the Indian industry faces a threat
from China.
c) SEGMENT WISE PERFORMANCE:
The Company has two segments one is manufacturing and other is trading.
The detailed reporting of segment wise performance of the Company is
mentioned in Note No. B (12) of Schedule 17 of the Financial statement
attached.
d) FUTURE OUTLOOK:
As industry survey stated, there has been a slowdown in the economy
especially in the developed economies and it may continue for some time
due to demand contraction in the developed markets such as the US and
the European Union. However, very recent figures and increase in
consumer confidence across globe have boosted the industry confidence
and experts are hoping for quick revival of consumer demand and growth
in industry. All India Gem and Jewellery Trade Federation (GJF) are
targeting growth in the forthcoming financial year.
India possesses the world''s most competitive gems and jewellery
market due to its low cost of production and availability of skilled
labour. As per the new research report "Indian Gems and Jewellery
Market - Future Prospects to 2011", highly skilled and low cost
manpower, along with strong government support in the form of
incentives and establishment of SEZs, has been the major driver for the
Indian gems and jewellery market. The market also plays a vital role in
the Indian economy as it is a leading foreign exchange earner and
accounts for more than 12% of India''s total exports. Currently the
Indian market remains highly fragmented, but is rapidly transforming
into an organized sector.
The Indian Diamond Industry is witnessing a divergent trend in the
demand for cut and polished diamonds and maintaining its Global
Presence. The Jewellery Industry is also having its presence felt in
the local as well as global market. The new Government and its economic
policies will have an impact on the economic reforms and also on the
Gem and Jewellery Industry. The Rupees / Dollar fluctuations is having
a lot of impact on the performance of the industry and continues to do
so in future also because the exports are linked to dollar. The overall
demand in the world market is excellent but due to problems faced by
the U.S. economy the demand will be sluggish until and unless there is
improvement in the oil price. Revaluation of Yuan of China will have
cost bearing effect in the labour market. This will open up the market
for Indian Diamond and Jewellery and increase its presence. The cash
flow of the company is very encouraging with the significant growth in
terms of turnover as well as profitability. Currently, the industry is
facing a slowdown due to global economic turmoil. But due to various
government efforts and incentives coupled with private sector
initiatives, the Indian gems and jewellery sector is expected to grow
at a CAGR of around 14% from 2012 to 2015. At present, the Indian gems
and jewellery market is dominated by the unorganized sector; however,
the trend is set to change in near future with the branded jewellery
market growing at an expected CAGR of more than 41% in the coming four
years.
The outlook for the Industry and consequently for the Company during
the current financial year is reasonably good, subject however, to the
effects of prevailing disturbed scenario in the different parts of the
world. The Company is putting a lot of efforts to strengthen its
financial position by increasing its working capital so as to expand
its operations and export business. In view of the demand for Cut and
Polished Diamonds and Diamond Studded Jewellery there is a continuous
growth in diamond business. There is enough potential in the Indian and
Overseas market for the Companies engaged in diamond trade and export.
The Company''s policy is to maintain goodwill in the market and flawless
perfection at all levels. Customer''s satisfaction is the top most
priority.
e) RISK MANAGEMENT:
Risk is an important element of corporate functioning and governance.
Your Company has established the process of identifying, analyzing and
treating risks, which could prevent the Company from effectively
achieving its objectives. It ensures that all the risks are timely
defined and mitigated in accordance with the well structured risk
management Process.
f) INTERNAL CONTROL SYSTEMS:
The Company has designed an effective Internal Control System to
balance the financial, operational, compliance and other risks and
explore its business opportunities at the fullest to achieve its
desired objectives.
g) DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL
PERFORMANCE
Turnover of the Company is Rs. 126.82 million for the year ended 31st
March, 2014 as compared to Rs. 65.27 million for the year ended 31st
March, 2013. Net loss for the year ended 31st March 2014 is Rs. 33.58
million against Net Loss Rs. 50.41 million for the year ended 31st
March, 2013.
h) HUMAN RESOURCE - THE BIGGEST COMPETITIVE EDGE
The Company regards its human resources as one of its prime and
critical resources. The Company proactively reviews policies and
processes by creating a work environment which encourages initiative,
provides challenges & opportunities and recognizes the performance and
potentials of its employees.
Comprehensive on-going training is offered to the employees to increase
their competence level and job capability. There is a strong focus on
team work and team building. Employee relations continue to be cordial.
People are our most vital resources of the Company. The success or
failure of the organization is directly linked to the talent of the
work force that it is able to attract, retain & engage. We have created
a favourable work environment that encourages innovation and
meritocracy in our employees which are our greatest resource of
sustainable competitive advantage.
We believe that to enhance the market presence of the Company, it is
important that new personnel entering the organization are highly
skilled, qualified and emotionally attached to the organization. The
rollout of this initiative has been extremely well received by the
target audience and also by customers, opinion leaders and the media.
In our Company the key focus has been to change the mindset from
âÂÂHuman resource utilizationâ to âÂÂNurturing and leveraging
Talentâ Employee engagement remains a key focus of HR initiatives
undertaken by our Company. The company helps employees to build new
skills and competencies and also promotes knowledge sharing and team
building. Harmonious and constructive relations between the management
and workmen help to maintain a cordial work atmosphere and achieve
business growth.
i) CODE OF CONDUCT
The Board of Directors has prescribed norms of ethical practices and
code of conduct for the Directors of the Company. The Code of Conduct
of the Company lays down the principles, values, standards and rules of
behavior that guide the decisions, procedures and systems of the
Company in a way that (a) it contributes to the welfare of its
stakeholders, and (b) respects the rights of all constituents affected
by its operations The Code of Conduct is reviewed from time to time by
the Board. The Code of Conduct of the Company has also been posted on
the Company''s website - www.sbtindia.com
j) CAUTIONARY STATEMENT
The statements made in this report describe the Company''s objectives,
expectations and projections that may be forward looking statements.
The actual results might differ materially from those expressed or
implied depending on the economic conditions, government policies and
other incidental factors, which are beyond the control of the Company
and Management.
5. THE COMPANIES ACT, 2013
The Companies Act, 2013 (the Act) came into force as on 1st April, 2014
(in the manner, to the extent notified by the Ministry of Corporate
Affairs). The Act has replaced the Companies Act, 1956 and has brought
a new set of compliances for companies.
The new Legislation will facilitate greater transparency, more
Disclosures and enhanced corporate governance. The Company is taking
necessary steps for implementation of the provisions of the Act.
6. BOARD OF DIRECTORS
RE-APPOINTMENT/ APPOINTMENT:
In accordance with the Articles of Association of the Company and
provisions of the Companies Act, 2013, at least two- third of our
Directors shall be subject to retirement by rotation. One- third of
these retiring Directors must retire from office at each Annual General
Meeting , Mr. Surendrakumar Sethi will retire by rotation at the
ensuing Annual General Meeting and being eligible, offer himself for
re-appointment. Your Directors recommend his re-appointment.
The Company has decided to appoint Ms. Rakhi Jain as a Director, liable
to retire by rotation of the Company in the Annual General Meeting of
the Company in respect of whom the company has received a notice under
Section 160 of the Companies Act, 2013 from a member proposing her
candidature for the office of Director.
The Company has also decided to re-appoint Mr. Varij Sethi and Mr.
Surendrakumar Sethi as a Managing Directors of the Company for a period
of Five year and One year respectively with effect from 01st December,
2014, liable to retire by rotation.
Pursuant to the provisions of the new Companies Act, 2013 and revised
Clause 49 of the Listing Agreement (effective from October 1,2014), the
Company has decided the term of Independent Directors as below:
Mr. Sunilkumar Barjatiya (DIN No.02242320) and Mr. Shrance Sethi (DIN
No.03230097) be and is hereby appointed as an Independent Director of
the Company to hold office for 5(five) consecutive years for the term
upto March 31st, 2019, not liable to retire by rotation.
7. FIXED DEPOSITS
During the year under review, the Company has not accepted any deposit
from public as the Company has stopped accepting deposits w.e.f. 12th
September 2003 as per the resolution passed by the Board of Directors.
Total amount of deposits as on 31st March, 2014 was Rs.50,000/- (Rupees
Fifty Thousand Only). There were no outstanding or unclaimed fixed
deposits as on 31st March, 2014.In terms of the provisions of Section
58A of the Companies Act, 1956 read with the Companies (Acceptance of
Deposit Rules), 1975, the Company has not accepted fixed deposits
during the year.
8. SUBSIDIARY COMPANY
The Ministry of Corporate Affairs vide its General Circular No. 2 /
2011 dated 8th February, 2011 granted general exemption to the
Companies from attaching a copy of the Balance Sheet, the Profit and
Loss Account and other documents of its subsidiary companies as
required to be attached under Section 212 of the Companies Act, 1956 to
the Balance Sheet of the Company subject to fulfillment of conditions
stipulated in the circular.
Therefore, the said documents of the following subsidiary companies
viz. (1) S. B. & T Designs Ltd. (2) Mimansa Jewellery P. Ltd. will not
be attached to the Annual report. However, the aforesaid documents
relating to the subsidiary companies and the related detailed
information will be made available upon request by any member or
investor of the Company. Further, the Annual Accounts of the
subsidiary companies will be kept open for inspection by a member or an
investor at the Registered Office of the Company or the respective
subsidiary company.
9. CONSOLIDATED FINANCIAL STATEMENTS.
The Consolidated Financial Statements of SB&T International Limited and
its subsidiaries Mimansa Jewellery Private Limited, SB&T Designs
Limited prepared in accordance with Accounting Standard 21 is annexed.
10. PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNING AND OUTGO.
Information pursuant to Section 217 (1) (e) of the Companies Act, 1956
read with the Companies (Disclosure of particulars in the Report of the
Board of Directors) A rule, 1988 is annexed hereto and forms part of
this report.
11. PARTICULARS OF EMPLOYEES.
Since none of the employees of the Company was drawing remuneration in
excess of limits laid down pursuant to Section 217(2A) of the Companies
Act, 1956 read with the Companies (Particulars of Employees) Rules,
1975, details therewith are not furnished.
12. DIRECTORS'' RESPONSIBILITY STATEMENT
To the best of their knowledge and belief and according to the
information and explanation obtained by them, your Directors make the
following statement in terms of Section 217(2AA) of the Companies Act,
1956:
(i) That in the preparation of the Annual Accounts for the year ended
March 31,2014; the applicable accounting standards have been followed
along with proper explanation relating to material departures, if any.
(ii) 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 ended March
31,2014 and of the profit of the Company for the said year.
(iii) That the Directors have 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.
(iv) That the Directors have prepared the Annual Accounts for the year
ended March 31,2014, on a going concern basis.
13. COST AUDIT:
The Cost Audit under Section 233B of the Companies Act, 1956 is
applicable to the Company for the Financial Year 2013- 14 and
accordingly Mr. Naresh Kumar Jethwani were appointed as the Cost
Auditor, for the said year.
14. STATUTORY AUDITORS:
Pursuant to provisions of Section 139 of the Companies Act, 2013 and
the rules framed thereunder, it is proposed to appoint M/s. M. M. Dubey
& Co., Chartered Accountants, Mumbai, Statutory Auditors of your
Company (Firm Registration No. 30453) from the conclusion of the
ensuing AGM till the conclusion of Thirtieth AGM to be held in the year
2017, subject to annual ratification by members at the Annual General
Meeting.
The Auditors have confirmed that, their re-appointment, if made, would
be in accordance with the Section 139 of the Companies Act, 2013 and
the rules made thereunder and that they are not qualified in terms of
Section 141 of the Act.
15. SECRETARIAL AUDITOR:
Pursuant to the provisions of the Section 179(3) and 204 of the
Companies Act, 2013 read with Rule 8 of the Companies (Meetings of
Board and its Powers) Rules, 2014 and as a measure of good corporate
governance practice, the Board of Directors of the Company hereby
appoint M/s. Pramod S. Shah & Associates (Membership No. 334),
Practicing Company Secretaries, Mumbai as a Secretarial Auditors of the
Company for the financial year 2014-2015 on such remuneration as may be
decided by the Board in consultation with the Secretarial Auditor.
17. INTERNAL AUDITOR:
Pursuant to the provisions of Section 138 and 179(3) of the Companies
Act, 2013 read with Rule 8 of the Companies (Meetings of Board and its
Powers) Rules, 2014, the Directors of the Company hereby appoint M/s.
N. K. Suthar & Co. (Membership No.126694), Mumbai as Internal Auditors
of the Company for the financial year 2014-2015 on such remuneration as
may be decided by the Board in consultation with the Internal Auditor.
18. COMMITTEES OF THE BOARD:
The details of the Committees of the Board including their composition
are provided in the Corporate Governance Section of this Annual Report.
Nomination and Remuneration Committee -Companies Act 2013.
Pursuant to the provisions of Section 178 of Companies Act, 2013, the
Board of Directors of the Company has consented the change in
nomenclature of existing Remuneration Committee to ''Nomination and
Remuneration Committee'' as provided under Companies Act, 2013 and has
also approved the revised terms of reference of the Nomination and
Remuneration Committee as per the provisions of the Companies Act, 2013
(effective from 01/04/2014).
As per the said terms of reference approved by the Board the Nomination
and Remuneration Committee shall formulate the criteria for determining
the qualifications, positive attributes and independence of a director
and recommend to the Board a policy, relating to the remuneration for
the Director, Key Managerial Person (KMP) and other employees. The
Company''s policy on Directors appointment and remuneration and other
specifications as mentioned above will be disclosed in the Boards''
Report as provided under Section 134 (3) (e) once the same is
formulated by the Committee.
19. CORPORATE GOVERNANCE
Pursuant to Clause 49 of the Listing Agreements with the Stock
Exchanges, Report on Corporate Governance is furnished as a part of the
Directorsâ Report and forms part of this report. Certificate from the
Practicing Company Secretaries regarding compliance is annexed hereto
and forms part of this report.
20. ACKNOWLEDGMENT:
Your Directors take this opportunity to express their grateful
appreciation for the excellent assistance and co-operation received
from all our customers, vendors, investors and bankers for their
continued support during the year. We place on record our appreciation
of the contribution made by employees at all levels.
We thank the Government of India, the Ministry of Communication and
Information Technology, the State Government, various government
agencies and the Government of United States of America where we have
operations, for their immense support, and look forward to their
continued support in the future.
For and on behalf of the Board of Directors
Place: Mumbai Surendra Kumar Sethi
Date: 4th September, 2014 Chairman
Registered Office:
Yusuf building, 1st floor, Room No. 15,
Abdulrehman street,
Mumbai - 400 003.
Mar 31, 2010
The Directors present with pleasure the Twenty Third Annual Report
together with the Audited Statement of Accounts of the Company for the
year ended March 31, 2010.
1 FINANCIAL RESULTS
(Rs. In Million)
2009-2010 2008-2009
Gross Profit 11.95 15.92
Less: Depreciation 2.83 3.37
Profit before Tax 9.12 12.55
Provision for Tax - Current (5.27) (6.35)
Deferred (0.14) 1.36
Fringe Benefit Tax - (0.15)
Profit after Tax 3.71 7.41
Add: Balance brought forward 41.80 36.61
Profit available for appropriation 45.51 44.02
Appropriations
Proposed Final Dividend 1.69 1.69
Corporate Dividend Tax (0.62) (0.54)
Balance carried to Balance Sheet 43.20 41.79
2. OPERATIONS
Turnover of the Company is Rs. 1286.18 Million for the year ended 31st
March, 2010 as compared to Rs. 1052.31 Million for the year ended 31s1
March, 2009.
3. CAPITAL
The Paid up Capital of the Company for the financial year ended 31st
March, 2010 is Rs. 168,500,000 divided into 16,850,000 shares of Rs. 10
each.
4. DIVIDEND
Your Directors recommend dividend at the rate of 1% of the paid up
capital of Rs. 168,500,000/- consisting of 16,850,000 equity shares of
Rs.10/- each fully paid up for the financial year ended 31st March,
2010 aggregating to Rs. 1,685,000/- and Tax on dividend of Rs.
2,86,366/-. The dividend is free of tax in the hands of the recipient.
5. MANAGEMENT DISCUSSION AND ANALYSIS REPORT
a) INDUSTRY STRUCTURE AND DEVELOPMENTS
Diamonds, Gems and Jewellery have been a part of the Indian
civilisation since its recorded history, the significance of the Gems
and Jewellery industry in the Indian economic scenario is a development
of the last three or four decades. In 1966-67, the export turnover of
the Gems & Jewellery industry was just Rs 220 million representing a 3
per cent of total merchandise exports. However, it has now grown to
become one of the leading export oriented industries in India recording
an export turnover of around Rs 675 billion during 2004-05 and
contributing 16 per cent of total exports, making it a significant
foreign exchange earner for the country.
Gems and Jewellery form an integral part of Indian tradition. A legacy
passed from one generation to another. The components of jewellery
include not only traditional gold but also diamond, platinum
accompanied by a variety of precious and semi-precious stones. India is
one of the largest exporters of gems and Jewellery and also the diamond
polishing capital
The Indian Gems & Jewellery industry is highly fragmented with a large
number of domestic private sector companies. A large portion of the
market is in the unorganized sector. India is gaining prominence as an
international sourcing destination for high quality designer jewellary.
b) SWOT ANALYSIS OF INDIAN GEMS & JEWELLERY INDUSTRY
STRENGTHS:
About one million craftsmen are associated with this industry. Their
skills can be utilized for designing and making modern Jewellery
Availability of abundance of cheap and skilled labour in India.
Presence of excellent marketing network spread across the world.
Supportive government industrial/ EXIM policy.
WEAKNESSES:
Small firms lacking technological/ export information expertise.
Low productivity compared to labour in China, Thailand and Sri Lanka.
As the major raw material requirements need to be imported, companies
normally stock huge quantities of inventory resulting high inventory
carrying costs.
OPPORTUNITIES:
New markets in Europe & Latin America Growing demand in South Asian &
Far East countries. Industry moving from a phase of consolidation
THREATS:
China, Sri Lanka and Thailands entry in small diamond segment
Infrastructure bottlenecks, absence of latest technology Unusual
increase in the prices of gold and rough diamonds
c) SEGMENT-WISE PERFORMANCE
Refer to Note B (12) of Schedule 20 of the financial statements
attached herewith.
d) FUTURE OUTLOOK
The future scenarios for the global fashion jewelry industry, based on
the recent trends, are that the mining countries will capture a huge
share of the polishing sector as well. Substitutes of precious stones
such as synthetic diamonds and non-precious metals will replace the
precious stones. The plain gold jewelry sales will keep on declining
and China and India will emerge as large retail markets.
Based on the above trends the projections for growth of jewelry
industry are as follows:
The growth in sales of the industry as a whole will slow down and the
world will notice the emergence of new markets. The global fashion
jewelry sales will grow at the rate of 4.6% annually and is estimated
to reach US $ 185 billion by 2010 and US $ 230 billion in 2015. China
and India together will emerge as equivalent to the US market in 2015.
Jewellery fabrication services will also show sluggish demand and will
move to new centers. The CAGR of global fashion jewelry fabrication is
estimated to be 5.1% by 2015. China and India will be the new centers
for jewelry fabrication.
Lowering margins in profit and debt levels in the industry will help to
build up the fashion jewelry industry.
By the year 2015, the fashion jewelry industry will witness the
emergence of a number of giant markets, which will be the industry
leaders of the future.
The future of fashion jewellery industry lies in the developing
countries and primarily China and India. The African countries
producing raw materials will also benefit from the expansion of these
markets. Thus on the whole the future for the industry is bright but
still certain steps need to be taken by the key players to increase
supply of raw materials and reform the supply chain.
e) RISK MANAGEMENT
The company considers risk management to be one of the most critical
components of its business framework. During the year, risk management
systems were further strengthened and fine-tuned to effectively manage
the risks confronted by the company. Similarly, well-established and
documented systems and procedures provide defence against the
operational risk. The Company assesses the risk on quarterly basis.
f) INTERNAL CONTROLS
The Company has in place adequate system of internal control. These
controls have been designed to provide a reasonable assurance with
regard to maintaining of proper accounting controls, monitoring of
operations, protecting assets from unauthorized use or losses,
compliances with regulations and for ensuring reliability of financial
reporting. The Company has continued its efforts to align all its
processes and controls with global best practices in these areas as
well.
The Companys internal control systems governed by well framed policies
and guidelines is supplemented by well-established audit processes that
assists management in identifying issues and associated risks and
ensure that all assets are safeguarded and protected against any loss.
Internal audit, an independent appraisal function, examines and
evaluates the adequacy and effectiveness of the internal control
systems, appraises periodically about activities and audit findings to
the Audit Committee, statutory auditors and the management.
g) DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL
PERFORMANCE
Turnover of the Company is Rs. 1286.18 Million for the year ended 31st
March, 2010 as compared to Rs. 1052.31 Million for the year ended 31st
March, 2009. Net Profits after Tax has decreased from Rs. 7.41 Million
for the year ended 31st March 2009 to Rs. 3.71 Million for the year
ended 31st March, 2010.
h) HUMAN RESOURCE-THE BIGGEST COMPETITIVE EDGE
The Company regards its human resources as one of its prime and
critical resources. The Company proactively reviews policies and
processes by creating a work environment which encourages initiative,
provides challenges & opportunities and. recognises the performance and
potentials of its employees.
Comprehensive on-going training is offered to the employees to increase
their competence level and job capability. There is a strong focus on
team work and team building. Employee relations continue to be cordial.
People are our most vital resources of the Company. The success or
failure of the organization is directly linked to the talent of the
work force that it is able to attract, retain & engage. We have created
a favourable work environment that encourages innovation and
meritocracy in our employees which are our greatest resource of
sustainable competitive advantage.
In our Company the key focus has been to change the mindset from "Human
resource utilization" to "Nurturing and leveraging Talent" Employee
engagement remains a key focus of HR initiatives undertaken by our
Company. The company helps employees to build new skills and
competencies and also promotes knowledge sharing and team building.
Harmonious and constructive relations between the management and
workmen help to maintain a cordial work atmosphere and achieve business
growth.
i) CODE OF CONDUCT
The Board of Directors has adopted the Code of Conduct setting out the
rules, ethical codes and honor codes outlining the responsibilities of
or proper practices for the Directors and the Company. The Code of
Conduct of the Company lays down the principles, values, standards and
rules of behavior that guide the decisions, procedures and systems of
the Company in a way that (a) it contributes to the welfare of its
stakeholders, and (b) respects the rights of all constituents affected
by its operations The Code of Conduct is reviewed from time to time by
the Board.
The Code of Conduct of the Company has also been posted on the
Companys website - www.sbtindia.com
j) CAUTIONARY STATEMENT
The statements made in this report describe the Companys objectives,
expectations and projections that may be forward looking statements.
The actual results might differ materially from those expressed or
implied depending on the economic conditions, government policies and
other incidental factors, which are beyond the control of the Company
and Management.
6. DIRECTORS
In accordance with the provisions of the Companies Act, 1956 and
Articles of Association of the Company, Mr. Vivek Tharaney and Mr.
Sunil Barjatiya, Directors of the Company retire by rotation at the
ensuing Annual General Meeting and being eligible offer themselves for
re-appointment.
7. FIXED DEPOSITS
During the year under review, the Company has not accepted any deposit
from public as the Company has stopped accepting deposits w.e.f. 12th
September 2003 as per the resolution passed by the Board of Directors.
Total amount of deposits as on 31st March, 2010 was Rs.94,000 /-
(Rupees Ninety Four Thousand Only). There were no outstanding or
unclaimed fixed deposits as on 31st March, 2010.
8. SUBSIDIARY COMPANY
In accordance with Section 212 of the Companies Act, 1956, the audited
statement of accounts of the Companys subsidiaries SB&T Holding
Limited, Mimansa Jewellery Private Limited, Soft Touch Jewelers LLC,
SB&T Designs Limited and SB&T (UK) Limited together with Reports of the
Directors and Auditors thereon for the year ended 31st March, 2010
are annexed hereto and form part of this report.
9. CONSOLIDATED FINANCIAL STATEMENTS.
The Consolidated Financial Statements of SB&T International Limited and
its subsidiaries SB&T Holding Limited, Mimansa Jewellery Private
Limited, Soft Touch Jewelers LLC, SB&T Designs Limited and SB&T (UK)
Limited prepared in accordance with Accounting Standard 21 is annexed.
10. PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNING AND OUTGO
Information pursuant to Section 217 (1) (e) of the Companies Act, 1956
read with the Companies (Disclosure of particulars in the Report of the
Board of Directors) A rule, 1988 is annexed hereto and forms part of
this report.
11. PARTICULARS OF EMPLOYEES
Since none of the employees of the Company was drawing remuneration in
excess of limits laid down pursuant to Section 217(2A) of the Companies
Act, 1956 read with the Companies (Particulars of Employees) Rules,
1975, details therewith are not furnished.
DIRECTORS RESPONSIBILITY STATEMENT
To the best of their knowledge and belief and according to the
information and explanation obtained by them, your Directors make the
following statement in terms of Section 217(2AA) of the Companies Act,
1956:
(i) that in the preparation of the Annual Accounts for the year ended
March 31, 2010; the applicable accounting standards have been followed
along with proper explanation relating to material departures, if any.
(ii) 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 ended March
31, 2010 and of the profit of the Company for that year.
(iii) that the Directors have 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
(iv) that the Directors have prepared the Annual Accounts for the year
ended March 31, 2010, on a going concern basis.
COST AUDIT
The company is not required to undertake the cost audit as required
under Section 233 B of the Companies Act, 1956.
AUDITORS
M/s. M. M. Dubey & Co., Auditors of the Company, hold office until the
conclusion of the ensuing Annual General Meeting. The Company has
received letter from them to the effect that their appointment, if
made, would be within the prescribed limits under Section 224(1-B) of
the Companies Act, 1956. Your Directors recommend their re-appointment.
CORPORATE GOVERNANCE
Report on Corporate Governance is furnished as a part of the Directors
Report and forms part of this report. Certificate from the Companys
Auditors regarding compliance is annexed hereto and forms part of this
report.
PERSONNEL
Your Directors place on record their appreciation to the sincere and
dedicated services put in by the employees of the Company at all the
levels and in all the departments of the Company.
BANKERS
The Directors place on record their appreciation for the support and
co-operation received from all the Bankers.
For and on behalf of the Board of Directors
Place : Mumbai Surendra Kumar Sethi
Date : September 08, 2010 Chairman
Registered Office:
138, Shreeji Chambers, First Floor,
Tata Road No. 2, Opera House,
Mumbai - 400 004
Mar 31, 2009
The Directors present with pleasure the Twenty Second Annual Report
together with the Audited Statement of Accounts of the Company for the
year ended March 31, 2009.
1. FINANCIAL RESULTS
(Rs. In Million)
2008-2009 2007-2008
Gross Profit 15.92 31.13
Less: Depreciation 3.37 3.72
Profit before Tax 12.55 27.41
Provision for Tax - Current (6.35) (11.14)
Deferred 1.36 (1.23)
Fringe Benefit Tax (0.15) (0.23)
Profit after Tax 7.41 14.81
Add: Balance brought forward 36.61 31.42
Profit available for appropriation 44.02 46.23
Appropriations
Proposed Final Dividend (1.69) (8.18)
Corporate Dividend Tax (including interest) (0.54) (1.44)
Balance carried to Balance Sheet 41.79 36.61
2. OPERATIONS
Turnover of the Company is Rs. 1052.31 Million for the year ended 31st
March, 2009 as compared to Rs. 944.95 Million for the year ended 31s1
March, 2008.
3. CAPITAL.
The Company allotted 5, 00,000 Equity Shares of Rs. 10/- each at a
premium of Rs. 30/- per share on 15th April, 2008. Subsequently the
paid up share capital of the Company has increased to Rs. 168,500,000/-
4. DIVIDEND
Your Directors recommend dividend at the rate of 1 % of the paid up
capital of Rs 168,500,000/- consisting of 16,850,000 equity shares of
Rs 10/- each fully paid up for the financial year ended 31st March,
2009 aggregating to Rs 1,685,000/- and tax on dividend of Rs. 286,366/-
The dividend is free of tax in the hands of the recipients.
5. EXTENSION FOR HOLDING ANNUAL GENERAL MEETING:
There was a change in the Accounting Software of the Company in the
month of March 2009. Hence, due to technical reasons, there had been a
delay to migrate the data to the new Software and the Companys Annual
Accounts have been delayed. Thus, the Company had applied for Extension
of its Annual General Meeting. The Company filed the necessary
documents and forms with the Registrar of Companies and the approval
was granted upto December 31, 2009 by a letter dated September 17,
2009.
6. FORFEITURE OF 18,00,000 EQUITY SHARE WARRANTS
In terms of resolution approved in the meeting of the Board of
Directors of the Company held on 17th December 2007 and in the
Extraordinary General Meeting of its members held on 9th January, 2008,
the Company had issued 18 lacs Equity Share Warrants @ Rs. 40/- each on
preferential basis on 4th April, 2008, with an option of its subsequent
conversion into same number of Equity shares. But, the 10% upfront
money received on issuance of Equity Share Warrants have been forfeited
due to the non-exercise of the said option by the warrant holders.
11. CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements of SB&T International Limited and
its subsidiaries SB&T Holding Limited, Mimansa Jewellery Private
Limited, Soft Touch Jewelers LLC, SB&T Designs Limited and SB&T (UK)
Limited prepared in accordance with Accounting Standard 21 is annexed.
12. PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNING AND OUTGO
Information pursuant to Section 217 (1) (e) of the Companies Act, 1956
read with the Companies (Disclosure of particulars in the Report of the
Board of Directors) Rule, 1988 is annexed hereto and forms part of this
report.
13. PARTICULARS OF EMPLOYEES
Since none of the employees of the Company was drawing remuneration in
excess of limits laid down pursuant to Section 217(2A) of the Companies
Act, 1956 read with the Companies (Particulars of Employees) Rules,
1975, details therewith are not furnished.
14. DIRECTORSRESPONSIBILITY STATEMENT
To the best of their knowledge and belief and according to the
information and explanation obtained by them, your Directors make the
following statement in terms of Section 217(2AA) of the Companies Act,
1956:
(i) that in the preparation of the Annual Accounts for the year ended
March 31, 2009; the applicable accounting standards have been followed
along with proper explanation relating to material departures, if any.
(ii) 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 ended March
31, 2009 and of the profit of the Company for that year.
(iii) that the Directors have 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
(iv) that the Directors have prepared the Annual Accounts for the year
end March 31, 2009, on a going concern basis.
15. COST AUDIT
The Company is not required to undertake the cost audit as required
undo Section 233 B of the Companies Act, 1956.
16. AUDITORS
M/s. Haribhakti & Co., Chartered Accountants, one of the Joint Audit jp
o fne Company, resigned from the post of Joint Auditors with effect
from July 02nd, 2009.
M/s. M. M. Dubey & Co., Chartered Accountants, one of the Joint
Auditors of the Company are appointed as the Statutory Auditors of the
Company with effect from November 03rd, 2009 through the process of
Postal Ballot under section 192(A) of the Companies Act, 1956.
17. CORPORATE GOVERNANCE
Report on Corporate Governance is furnished as a part of the Directors
Report and forms part of this report. Certificate from the Companys
Auditors regarding compliance is annexed hereto and forms part of this
report.
18. PERSONNEL
Your Directors place on record their appreciation to the sincere and
dedicated services put in by the employees of the Company at all the
levels and in all the departments of the Company.
19. BANKERS
The Directors place on record their appreciation for the support and
co-operation received from all the Bankers.
For and on behalf of the Board of Directors
Place : Mumbai Surendra Kumar Sethi
Date : November 25, 2009 Chairman
Registered Office:
138, Shreeji Chambers, First Floor,
Tata Road Mo. 2, Opera House,
Mumbai - 400 004
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