Mar 31, 2015
The Directors are hereby presenting the 29th Annual Report together
with Audited Financial Statements of the Company for the Financial Year
ended 31st March, 2015. Further, in compliance with the Companies Act,
2013 the Company has made requisite disclosures in this Board's Report
with the objective of accountability and transparency in its operations
to make you aware about its performance and future perspective of the
Company.
1. FINANCIAL SUMMARY, STATE OF COMPANY'S AFFAIRS AND CHANGE IN NATURE
OF BUSINESS
The Board's Report is based on the standalone Financial Statements of
the Company for the year ended 31st March, 2015:
(Amount in Rupees)
Particulars Current Year
(2014-2015) Previous Year
(2013-2014)
Total Revenue 59,74,71,363 61,48,30,717
Total Expenses 58,47,01,278 59,90,14,809
Profit Before Tax 1,27,70,085 1,58,15,908
Tax Expenses 2,46,92,083 39,35,136
A. Current Tax 26,65,110 55,24,300
B. Deferred Tax 2,15,57,643 (15,85,937)
C. Income Tax for earlier 4,69,330 (3,227)
years written off/back
Profit/Loss after Tax (1,19,21,998) 1,18,80,772
Carried to Balance Sheet (1,19,21,998) 1,18,80,772
1.1 PERFORMANCE REVIEW
During the year under review, the Company's total revenue was Rs.
59,74,71,363/- (Rupees Fifty Nine Crores Seventy Four Lacs Seventy One
Thousand Three Hundred and Sixty Three Only) as compared to Rs.
61,48,30,717/- (Rupees Sixty One Crores Forty Eight Lacs Thirty
Thousand Seven Hundred and Seventeen Only) and Company reported a
Profit Before Tax of Rs. 1,27,70,085/- (Rupees One Crore Twenty Seven
Lacs Seventy Thousand and Eighty Five Only) as compared to a Profit
Before Tax (PBT) of Rs. 1,58,15,908/- (Rupees One Crore Fifty Eight
Lacs Fifteen Thousand Nine Hundred and Eight Only) for the Financial
Year ended 31st March, 2014. During the year under review, a heavy
provision of deferred tax liabilities has been made which is affecting
the Profit figure.
There was expansion of existing manufacturing plant situated at
"Village Sejwaya", Ghatabillod, Dist. Dhar, M. P., and commercial
production was also commenced during the year under the review. Being
the first year of operation after expansion profitability and turnover
of the company affected downward for the related year. For such
expansion project, the Company also increased its existing debt
obligations from its Bankers and promoters; impact of same was resulted
in the financial position of Company. However, with reduction in cost
of maize as compared to previous year, better performance of utility
coupled with better product mix, improved technical parameters and
application of stringent cost cutting measures and as the existing
expansion has also come out, your company estimates that it shall be
able to increase its profitability. Further, the detailed performance
covered in the Management Discussion and Analysis Report separately
which is annexed as ANNEXURE IV with this report and shall form part of
the Board's report.
1.2 CHANGE IN NATURE OF COMPANY'S BUSINESS
During the Year under review, there was no change in Company's
Business, the Company finalized its Expansion plan and started the
commercial production of Starch and allied products in its expanded
unit w.e.f 21st March, 2015.
2. FUTURE OUTLOOK
Post expansion, the Company is utilizing the Manufacturing Unit to 100%
capacity, with installation of new equipments, de-bottlenecking,
automation of the existing production processes and improvement in
effluent treatment facilities, your Directors expect that the Company
would be able to increase the grinding activity as compared to previous
years. By doing so, your Company will be able to achieve a higher top
line and improve its bottom line in the years to come.
3. SHARE CAPITAL
During the year under review, the Company, neither increased nor
decreased its Equity and Preference Share Capital. The breakup of
Equity and 0% Redeemable Preference Share Capital of your Company as on
31st March, 2015 is as following:
a) The Authorized Equity Share Capital is Rs. 10,00,00,000/- (Rupees
Ten Crores Only) divided into 1,00,00,000 (One Crore) Equity Shares of
Rs. 10/- (Rupees Ten) each.
b) The Authorized Preference Share Capital is Rs. Rs. 2,00,00,000/-
(Rupees Two Crores Only) divided into 20,00,000 (Twenty Lacs) 0%
Redeemable Preference Shares of Rs. 10/- (Rupees Ten) each.
c) The Paid Up Equity Share Capital is Rs. 6,09,31,760/- (Rupees Six
Crore Nine Lacs Thirty One Thousand Seven Hundred Sixty Only) divided
into 60,93,176 (Sixty Lacs Ninety Three Thousand One Hundred and
Seventy Six) Equity Shares of Rs. 10/- (Rupees Ten) each.
d) The Paid Up 0% Redeemable Preference Share Capital is Rs.
1,50,00,000 (Rupees One Crore Fifty Lacs Only) divided into 15,00,000
(Fifteen Lacs) 0% Redeemable Preference Shares of Rs. 10/- (Rupees Ten)
each.
4. REVISION IN FINANCIAL STATEMENTS OR BOARD'S REPORT U/S 131(1) OF
THE COMPANIES ACT, 2013
In terms of Section 131 of the Companies Act, 2013, the Financial
Statements and Board's Report are in compliance with the provisions of
Section 129 or Section 134 of the Companies Act, 2013 and that no
revision has been made during any of the three preceding financial
years.
5. EXPORTS
During the year under review, the export turnover of your company is
Rs. 3,11,19,265/- (Rupees Three Crores Eleven Lacs Nineteen Thousand
Two Hundred and Sixty Five only). The major export markets of the
Company are United Arab Emirates (U. A. E.), South Africa and Kuwait,
further, your Company intends to continue with its long term export
oriented marketing policy by penetrating more in its existing
international market and exploring new avenues for its high value
products.
6. RESERVES
No amount has been proposed by the Board to carry to any reserves.
7. DIVIDEND
During the period under review, the Company did not pay any dividend.
8. DEPOSITS
During the year under review, Company's Bankers, viz, State Bank of
India, Commercial Branch, Indore, extended credit facilities in the
form of Cash Credit and Term Loan  III. Company's Bankers stipulated
under Sanction Letters that promoters of the Company shall be required
to contribute some amount in the form of Unsecured Loan. Therefore, the
Directors, Promoters and relatives of Promoters under such stipulation,
gave amount to the Company, as Unsecured Loan.
The excess deposits have been repaid by your Company before 31st March,
2015 and the Company is not under any default in terms of Companies
Act, 2013 and rules made there under.
9. MATERIAL CHANGES AND COMMITMENT AFFECTING THE FINANCIAL POSITION OF
THE COMPANY
During the year under review, State Bank of India, Commercial Branch,
Indore extended following credit facilities to your Company for the
expansion project at Company's factory premises situated at "Village
Sejwaya", Ghatabillod, Dist. Dhar, M. P.:
a) The Cash Credit limit to the tune of Rs. 8,00,00,000/- (Rupees Eight
Crores Only) and
b) A Term Loan  III to the tune of Rs. 4,25,00,000/- (Rupees Four
Crores and Twenty Five Lacs Only).
Your Directors also infused funds in the form of Unsecured Loans, in
terms of both the sanctions above, due to this reason, the financial
position the Company was substantially changed and after smooth
commencement of the expanded unit, the same shall be improved to a
great extent.
10. PERFORMANCE AND FINANCIAL POSITION OF SUBSIDIARY AND ASSOCIATE
COMPANIES:
As per Sections 2(87) and 2(6) of the Companies Act, 2013 and as on
date, the Company neither has any Subsidiary Company nor any Associate
Company and hence, do not call for any disclosure under this head.
11. EXTRACT OF ANNUAL RETURN
The extract of Annual Return in Form MGT Â 9, as provided under Section
92 (3) of the Companies Act, 2013, read with Rule 12 of the Companies
(Management and Administration) Rules, 2014 is annexed hereto as
ANNEXURE Â I with this report and shall form part of the Board's
Report.
12. NUMBER OF MEETINGS OF THE BOARD AND COMMITTEES THEREOF
During the year under review various meetings of the Board of Directors
and Committees was held for various purposes which were in compliance
with the provisions of the Companies Act, 2013, rules made there under
and Clause 49 of the Listing Agreement entered into between the Company
and the Bombay Stock Exchange. Further the details of such meetings of
the Board and Committees thereof are mentioned in the Report on
Corporate Governance which is annexed as ANNEXURE III with this Report
and shall form part of the Board's Report.
13. DIRECTOR'S RESPONSIBILITY STATEMENT
To the best of Board's knowledge and belief and according to the
information and explanations obtained by them, your Directors make the
following statements in terms of Section 134(3)(c) of the Companies
Act, 2013:
a) that in preparation of Annual Accounts for the period ended 31st
March, 2015, the applicable accounting standards have been followed
along with proper explanation relating to material departures, if any;
b) that such accounting policies as mentioned in Note: 2 of the Notes
to the Financial Statements have been selected and applied consistently
and judgment and estimates have been made that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company as at 31st March, 2015 and of the profit and loss of the
Company for the period ended on that date;
c) that proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act, 2013 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
d) that the Annual Account have been prepared on a going concern basis;
e) that Board has laid down proper internal financial controls and the
financial controls were adequate and were operating effectively;
f) The Directors have devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
14. THE DETAILS OF DIRECTORS OR KEY MANAGERIAL PERSONNEL WHO HAVE
APPOINTED OR RESIGNED DURING THE YEAR
During the year under review, there were following changes that took
place in the Key Managerial Personnel of the Company:
1. Dr. Damodar Modi, DIN: 00106669, who were holding the position of
Chairman and Managing Director of the Company, passed away on 17th
November, 2014. Dr. Modi was one of the founder members of Company, he
promoted the Company from its inception, his guidance, opinion and
prompt business decisions were helpful to the Board and the Company as
well, the Board placed on record its appreciation for the commendable
contribution by Dr. Damodar Modi during his tenure as a director of the
company.
2. Mr. Amit Modi (DIN: 03124351), was originally appointed as
Additional Director by the Board in its meeting held on 10th December,
2014. On 30th January, 2015, the Board appointed him as Whole Time
Director for a period of three years, subject to approval of members in
ensuing Annual General Meeting.
As per Section 161 of the Act, his office is liable to be vacated on
the date of Annual General Meeting of the Company. Mr. Amit Modi (DIN:
03124351), Whole Time Director of the Company, is seeking
re-appointment as Whole Time Director of the Company in ensuing Annual
General Meeting.
3. Mr. Ramdas Goyal (DIN; 00150037), Executive Director of the
Company, was appointed as Managing Director by the Board, in its
meeting held on 30th January, 2015, for a period of three years,
subject to approval of Members in ensuing Annual General Meeting.
Mr. Ramdas Goyal (DIN: 00150037), Managing Director of the Company is
seeking re- appointment as Managing Director of the Company in ensuing
Annual General Meeting.
4. During the year under review, the Board, in its meeting held on
30th January, 2015, appointed following Directors as Whole Time
Directors for a period of three years subject to approval of Members in
the General Meeting;
a) Mr. Ramesh Chandra Goyal (DIN: 00293615)
b) Mr. Yogesh Agrawal (DIN: 00107150)
c) Mr. Prakash Bafna (DIN: 00107070)
The abovementioned Directors are also seeking re-appointment at the
ensuing Annual General Meeting of the Company.
5. During the Financial Year 2014-2015, none of the Directors resigned
from the directorship of the Company, however, Mr. Yogesh Agrawal (DIN:
00107150), Whole Time Director. Mr. Satish Mangal (DIN: 00472652),
Independent Director of the Company, have resigned from the Board after
31st March, 2015 and Mr. Nikhar Agrawal (DIN: 00982811) as Additional
Director on the Board of Company w.e.f. 7th August 2015.
6. During the year under review, in terms of Company's Articles of
Association and Section 152 of the Companies Act, 2013, following
Directors shall retire at the ensuing Annual General Meeting of the
Company and are offering themselves to be re-appointed:
a) Ms. Pramila Jajodia (DIN: 01586753)
b) Ms. Shashikala Mangal (DIN: 00107187)
7. The Board, in its meeting held on 10th December, 2014, appointed
Mr. Siddharth Sharma as Company Secretary and Compliance Officer of the
Company.
8. The Board, in its meeting held on 19th March, 2015, appointed Mr.
Rohit Mangal as Chief Financial Officer of the Company.
At the time of appointment, all the disclosures and declarations
pursuant to Section 164(2) of the Companies Act, 2013 and Rule 14(1) of
Companies (Appointment and Qualification of Directors) Rules, 2014,
none of the Directors of the Company is disqualified from being
appointed as Director. Further, all intimations pertaining to such
appointments made during the year has been given to Stock Exchange
where the shares of the Company are listed and also the relevant
records are duly updated with the Registrar of Companies, Gwalior M.
P., wherever required.
15. APPOINTMENT/RE-APPOINTMNET OF INDEPENDENT DIRECTORS AND STATEMENT
OF DECLARATIONS BY INDEPENDENT DIRECTOR
The Company, as on 31st March, 2015, has following Independent
Directors;
a) Mr. Ashish Agrawal, DIN: 00335575
b) Mr. Vinod Kumar Garg, DIN: 00266341
c) Mr. Satish Mangal, DIN: 00472652 (resigned w.e.f. 1st June, 2015)
All the Independent Directors are well appointed on the Board of
Company in compliance with the Companies Act, 2013 and the Listing
Agreement entered into by the Company with Stock Exchange. Further, all
Independent Directors shall hold office for a term up to five
consecutive years on the Board of a Company, but shall be eligible for
reappointment for next five years after passing a special resolution by
the Company and disclosure of such appointment in the Board's Report.
The Company has received declarations from all the Independent
Directors of the Company confirming that they meet the criteria of
Independence under sub-section (6) of section 149 of the Act and Clause
49 of the Listing Agreement entered into by the Company with the Stock
Exchanges.
16. FAMILARISATION PROGRAMME FOR INDEPENDENT DIRECTORS
The directors will be introduced to all the Board members and the
senior management personnel such as Chief Financial Officer, Company
Secretary and Various Department heads individually to know their roles
in the organization and to understand the information which they may
seek from them while performing their duties as a Director. And meeting
may be arranged for Independent Directors with aforesaid officials to
better understand the business and operation of the Company. As part of
continuous updating and familiarization with the Company, every
Independent Director will be taken for visits to the factory or
manufacturing units and other branch of the company where officials of
various departments apprise them of the operational and sustainability
aspects of the plants to enable them to have full understanding on the
activities of the Company and initiatives taken on safety, quality etc.
The Company may also circulate news and articles related to the
industry from time to time and may provide specific regulatory updates.
17. SEPARATE MEETING OF INDEPENDENT DIRECTORS
In due compliance with the provisions of the Companies Act, 2013 and
Clause 49 of the Listing Agreement entered into between the Company and
the Bombay Stock Exchange, a separate meeting of Independent Directors
was held on 19th March, 2015.
18. PERFORMANCE EVALUATION BY INDEPENDENT DIRECTORS
The Independent Directors in their meeting have reviewed the
performance of Non- Independent Directors and Board as a whole
including reviewing the performance of the Chairperson of the company
taken into account the views of Executive Directors and Non- Executive
Directors. The said policy including above said criteria for the
evaluation of the Board, individual directors including independent
directors and the committee of the board has been laid down under
Nomination, Remuneration and Evaluation Policy given in the Report on
Corporate Governance which is annexed as ANNEXURE III with this report
and shall form part of the Board's report.
19. NOMINATION AND REMUNERATION COMMITTEE AND STAKEHOLDERS'
RELATIONSHIP COMMITTEE AND POLICIES THEREOF
a) The Board, in its meeting held on 10th December, 2014, reconstituted
the Nomination and Remuneration Committee in terms of Section 178 of
the Companies Act, 2013, rules made there under and Clause 49 of the
Listing Agreement entered into between the Company and the Bombay Stock
Exchange.
b) The Stakeholders' Relationship Committee is duly constituted as per
the provisions of Companies Act, 2013 and Clause 49 of Listing
Agreement; the nomenclature of that committee has been changed from
Shareholders' Grievance Committee to Stakeholders' Relationship
Committee.
The composition and brief terms of reference along with "Nomination,
Remuneration & Evaluation Policy" has been disclosed under the Report
on Corporate Governance which is annexed as ANNEXURE III with this
report and shall form part of the Board's report.
20. AUDITORS
20.1 STATUTORY AUDITORS
M/s Sunil Chandra Goyal and Company, Chartered Accountants, Indore,
having Institute of Chartered Accountants of India (ICAI) Firm
Registration Number: 002658C, Statutory Auditors of the Company who
were re-appointed in last Annual General Meeting on 30th September,
2014, have submitted to the Company, a letter of unwillingness dated
16th August, 2015, to continue as Statutory Auditors of the Company.
Further, M/s. A. P. G. and Associates, Chartered Accountants, Indore
having ICAI Firm Registration Number 119598W and Membership Number
411569, are proposed to be appointed as Statutory Auditors of the
Company from conclusion of this Annual General Meeting upto conclusion
of 34th Annual General Meeting. M/s A. P. G. and Associates have
confirmed, vide their letter dated 18th August, 2015 that they hold a
valid certificate issued by Peer Review Board of the ICAI. Proposal for
their appointment have been included in the Notice calling Annual
General Meeting for your approval.
20.2 SECRETARIAL AUDITORS
Pursuant to the provisions of Section 204 of the Companies Act, 2013
and The Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, the Company has appointed Mr. Ramesh Chandra
Bagdi, Practicing Company Secretary, to undertake the Secretarial Audit
of the Company for Financial Year 2014-2015. The Secretarial Auditor of
the Company have submitted their Report for Financial Year 2014-2015
and the same is annexed with this Board's Report as ANNEXURE V.
20.3 INTERNAL AUDITORS
Pursuant to Section 138 of the Companies Act, 2013 and Rule 13 of The
Companies (Accounts) Rules, 2014, the Board, has appointed M/s Spark
and Associates, Chartered Accountants, Indore, having ICAI Firm
Registration Number: 005313C, as Internal Auditors of the Company.
21. STATUTORY AUDITOR'S REPORT AND SECRETARIAL AUDIT REPORT
The Statutory Auditors and the Secretarial Auditor of the Company have
submitted their respective reports; the same have been attached with
this Annual Report.
The qualifications, reservations and adverse remarks, so given in the
Statutory Audit and Secretarial Audit Report are explained hereunder:
a) In respect of Fixed Assets, the work of compilation of the Fixed
Assets Register showing other particulars such as locations,
depreciation, quantitative details etc. is in progress.
b) The internal control process is not commensurate with the size of
the Company and the nature of its business with regard to purchase of
inventory and fixed assets and with regard to sale of goods and
services. During the year, the Company has appointed M/s. Spark and
Associates, Chartered Accountants, as Internal Auditors and they have
observed that Internal Control procedures followed by the Company needs
improvement and the accounting software in place for recording the
transactions is now not able to keep up with the needs of growing
business. Now the Company has appointed a firm of Chartered Accountants
as Internal Auditor and also broad based its accounts department in
order to strengthen the Internal Control system. The management hereby
assures to strengthen the aforesaid internal control procedures mainly
regarding purchase of fixed assets and other expenditure verification.
c) The overdue amount of installments payable to Bank for Term Loan
were Rs. 133.70 Lacs at the end of 31st March, 2015 and the Company has
regularized the Term Loan Accounts on 10th April, 2015, the management
hereby assures that its shall regularize all its accounts.
d) Section 148(1) of the Companies Act, 2013 is applicable to the
Company with respect to Cost records; the Company is in the process to
comply with the same and maintenance of cost records in due course.
e) There has been a change in the promoters and directors of the
Company, due to this reason, the Company, in writing, requested the
Registrar and Share Transfer Agent to update the records under
shareholding pattern of promoter group. Such change is not due to sale
or purchase of equity shares by promoter group of the Company; hence,
there is no violation.
f) The Board has an optimum mix of Executive, Non-Executive and
Independent Directors, Managing Director and all Whole Time Directors
were not paid any remuneration during the year under review, therefore,
as per Clause 49 of the Listing Agreement, the Combination was proper
and there's no violation.
22. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186
OF THE COMPANIES ACT, 2013
During the year under review, the Company, has neither given any Loans
nor provided any Guarantees nor made any Investments under Section 186
of the Companies Act, 2013.
23. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES U/S
188(1) AND 188(2) OF THE COMPANIES ACT, 2013
The related party transactions are entered into based on considerations
of various business exigencies, such as synergy in operations, sectoral
specialization and the Company's long-term strategy for sectoral
investments, optimization of market share, profitability, liquidity and
capital resources of its group companies. All related party
transactions that were entered introducing the financial year were at
Arm's Length basis and were in the ordinary course of business, the
same were placed before the Audit Committee for the review and noting,
in their respective meetings. There are no materially significant
related party transactions made by the company with Promoters, Key
Managerial Personnel or other designated persons which may have
potential conflict with interest of the company at large. Further, as
there are no such transactions are exempted under sub-section (1) of
section 188 of the Companies Act, 2013, so no AOC-2 is required to be
given in this report.
24. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information on conservation of energy, technology absorption,
foreign exchange earnings and outgo as required under Rule 8(3) of the
Companies (Accounts) Rules, 2014 is appended herewith as ANNEXURE - II
and forms part of this report.
25. RISK MANAGEMENT
The policy on Risk Management has been included in Company's Code of
Conduct and your Directors have implemented the same in due course and
a statement for its implementation has been given under Management
Discussion and Analysis Report.
26. CORPORATE SOCIAL RESPONSIBILTY
The Company has adopted good practices under its Code of Conduct with
respect to its responsibility towards society. However, the Company was
neither required to constitute the Corporate Social Responsibility
Committee nor was required to contribute any amount on Corporate Social
Responsibility Initiatives in terms of the Companies Act, 2013 and the
Listing agreement entered into between the Company and the Bombay Stock
Exchange.
27. FORMAL ANNUAL EVALUATION
Pursuant to section 134 (3) (p) of the Companies Act, 2013 and Rule
8(4) of Companies (Accounts) Rules, 2014 and Clause 49 IV (b) of
Listing Agreement, the Board has carried out an evaluation of its own
performance, the directors individually as well as the evaluation of
its Committees as per the criteria laid down in the Nomination,
Remuneration and Evaluation policy. The said policy including above
said criteria for the evaluation of the Board, individual directors
including independent directors and the committee of the board has been
laid down in the Corporate Governance Report, which form part of this
report.
28. ORDER(S) PASSED BY REGULATOR(S), COURT(S), TRIBUNAL(S) IMPACTING
THE GOING CONCERN STATUS AND COMPANY STATUS
During the year under review, it was found that the Income Tax
Department, TDS CPC, Aaykar Bhawan, Sector-3, Vaishali, Ghaziabad, U.
P.-201 010, has raised a total demand of Rs. 1,56,990/- (Rupees One Lac
Fifty Six Thousand Nine Hundred and Ninety Only). However, such demand
did not affect the going concern status of the Company and the Company
is operating in an efficient manner. Apart from this, there were no
orders passed that could affect the going concern status of the
Company.
29. ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE
FINANCIAL STATEMENTS
The Company has a proper internal control system, which provides
adequate safeguards and effective monitoring of the transactions and
ensures that all assets are safeguarded and protected against loss from
unauthorized use or disposition. The Company has an internal audit
system from an outside agency, which ensures that the Company's control
mechanism is properly followed and all statutory requirements are duly
complied with. Moreover, the audit committee of the Company comprising
of independent directors regularly reviews the audit plans, adequacy of
internal control as well as compliance of accounting standards. Also
the Whole Time Directors/CFO has the responsibility for establishing
and maintaining internal controls for financial reporting and that they
also have the overall responsibility to evaluate the effectiveness of
internal control systems of the company pertaining to financial
reporting and they have to disclose to the auditors and the Audit
Committee, deficiencies in the design or operation of such internal
controls, if any, of which they are aware and the steps they have taken
or propose to take to rectify the deficiencies.
30. AUDIT COMMITTEE
The Company is in compliance with Section 177(8) of the Companies Act,
2013 and rules made there under with respect to forming Audit Committee
of the Company, details of which has been clearly disclosed in
Corporate Governance Report attached to this Annual Report.
31. VIGIL MECHANISM
The Company believes in the conduct of its affairs in a fair and
transparent manner by adopting highest standards of professionalism,
honesty, integrity and ethical behavior. The Company is committed to
develop a culture in which every employee feels free to raise concerns
about any poor or unacceptable practice and misconduct. In order to
maintain the standards has adopted lays down this Whistle Blower Policy
to provide a framework to promote responsible and secure whistle
blowing. The Board of Directors of your Company has adopted the Vigil
Mechanism and Whistle Blower Policy in compliance of Companies Act,
2013 and Clause 49(F)(3) of Listing Agreement. The same forms part of
Company's Code of Conduct.
32. COMMISSION RECEIVED BY DIRECTOR FROM HOLDING OR SUBSIDIARY COMPANY
The Company neither has any holding nor is any subsidiary company,
therefore, disclosure under Section 197 (14) of the Companies Act, 2013
not applicable.
33. MANAGERIAL REMUNERATION
During the year under review, none of the Directors of your Company
were paid any remuneration; therefore, disclosure under Sections 196
and 197 of the Companies Act, 2013 and rules made there under is not
applicable.
34. EQUITY SHARES WITH DIFFERENTIAL VOTING RIGHTS
The company has not issued any shares with differential voting rights
and accordingly the provisions of Section 43 read with Rule 4(4) of the
Companies (Share Capital and Debentures) Rules, 2014 of the Companies
Act, 2013 and rules framed there under are not applicable for the year.
35. DETAILS OF SWEAT EQUITY SHARES
The company has not issued any sweat equity shares and accordingly the
provisions of Section 54 read with Rule 8(13) of the Companies (Share
Capital and Debentures) Rules, 2014 of the Companies Act, 2013 and
rules framed there under are not applicable for the year.
36. DETAILS OF EMPLOYEES STOCK OPTION SCHEME
The company has not granted stock options and accordingly the
provisions of Section 62(1)(b) read with Rule 12(9) of the Companies
(Share Capital and Debentures) Rules, 2014 of the Companies Act, 2013
and rules framed there under are not applicable for the year.
37. DISCLOSURE OF VOTING RIGHTS NOT EXCERCISED
The company has not made any provision of money for the purchase of, or
subscription for, shares in the company or its holding company, if the
purchase of, or the subscription for, the shares by trustees is for the
shares to be held by or for the benefit of the employees of the company
and accordingly the provisions of Chapter IV (Share Capital and
Debentures) of the Companies Act, 2013 and rules framed there under are
not applicable for the year.
38. EMPLOYEES
Employee's relation continued to be cordial throughout the year. Your
Directors wish to place on record their sincere appreciation for the
excellent spirit with which the entire team of the Company worked at
factory and office premises and achieved commendable progress.
During the year under review, none of the employee has received
remuneration of Rs. 5.00 Lacs per month or Rs. 60.00 Lacs per year or
at a rate which, in the aggregate, is in excess of that drawn by the
managing director or whole-time director or manager and holds by
himself or along with his spouse and dependent children, not less than
two percent of the equity shares of the company pursuant to Section 197
(12) of the Companies Act, 2013 read with Rule 5(2) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 and
hence, do not call for any further details referred to in Rule 5(3) of
the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014.
39. CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Report on Corporate Governance and Management Discussion and Analysis
Report, in terms of Clause 49 of the Listing Agreement are annexed as
ANNEXURE - III and ANNEXURE - IV respectively, with this report and
shall form part of the Board's report.
A certificate from a Practicing Company Secretary confirming compliance
with the conditions of Corporate Governance is also annexed with this
report.
40. PAYMENT OF LISTING FEE AND DEPOSITORY FEE
Annual Listing Fee for the year 2015 Â 2016 has been paid to Bombay
Stock Exchange. The annual custodial fee for the year 2015 Â 2016 shall
be paid to National Depository and Securities Limited and Central
Depository Services Limited, on receipt of the invoices.
41. DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT THE WORKPLACE
(PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Board of Directors of the Company has approved and adopted the
"Policy on Prevention of Sexual Harassment at Workplace" to provide
equal employment opportunity and is committed to provide a work
environment that ensures every woman employee is treated with dignity
and respect and afforded equitable treatment. The Company has formed an
Internal Complaints Committee where employees can register their
complaints against sexual harassment. This is supported by the Sexual
Harassment Policy which ensures a free and fair enquiry process with
clear timelines. Present composition of the committee is as follows:
42. DEMATERIALISATION
The company's shares are presently held in both electronic and physical
modes.
43. TRANSFER TO INVESTOR'S EDUCATION AND PROTECTION FUND
During the year under review, the Company was not required to transfer
any amount in the Investor's Education and Protection Fund.
44. CODE OF FAIR DISCLOSURE OF UNPUBLISHED PRICE SENSITIVE INFORMATION
AND CODE OF CONDUCT UNDER SEBI (PROHIBITION OF INSIDER TRADING)
REGULATIONS, 2015
Pursuant to Regulation 8 of Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations, 2015, the Board of
Directors has formulated and adopted the "Code of Practices and
Procedures for Fair Disclosure of Unpublished Price Sensitive
Information" (Code of Fair Disclosure) of the Company. The Board has
also formulated and adopted "Code of Conduct for Prohibition of Insider
Trading" (Code of Conduct) of the Company as prescribed under
Regulation 9 of the said Regulations.
45. POLICY ON DIRECTOR'S APPOINTMENT AND REMUNERATION
The Board reconstituted the Nomination and Remuneration Committee in
terms of Section 178 of the Companies Act, 2013, rules made there under
Clause 49 of the Listing Agreement entered into between the Company and
the Bombay Stock Exchange; the Company has adopted a comprehensive
policy on Nomination and Remuneration of Directors on the Board. As per
such policy, candidates proposed to be appointed as Directors on the
Board shall be first reviewed by the Nomination and Remuneration
Committee in its duly convened Meeting. 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
Directors, Key Managerial Personnel and other employees.
The Nomination and Remuneration Committee shall ensure thatÂ
a) The level and composition of remuneration is reasonable and
sufficient to attract, retain and motivate directors of the quality
required to run the company successfully;
b) Relationship of remuneration to performance is clear and meets
appropriate performance benchmarks; and
c) Remuneration to directors, KMPs and senior management involves a
balance between fixed and incentive pay reflecting short and long-term
performance objectives appropriate to the working of the company and
its goals.
During the year under review, none of the Directors of the company
receive any remuneration. The composition of Nomination and
Remuneration Committee has been disclosed in the Report on Corporate
Governance.
46. SUBSIDIARIES, JOINT VENTURES OR ASSOCIATE COMPANIES
During the year under review, the Company neither had any Subsidiaries
nor Joint Ventures nor Associate Companies.
47. CODE OF CONDUCT FOR ALL BOARD MEMBERS AND SENIOR MEMBERS AND
DUTIES OF INDEPENDENT DIRETORS
The Board has laid down a Code of Conduct for all Board Members and
Senior Management of the Company. The Code of Conduct has been posted
on Company's website. Board Members and Senior Management Personnel
have affirmed the compliance with the Code for Financial Year
2014-2015. A separate declaration to this effect has been made out in
the Corporate Governance Report. The Company has also adopted a Code of
Practices and Procedures for Fair Disclosure of Unpublished Price
Sensitive Information and Code of Conduct as required under Regulation
(8)(1) and Regulation (9)(1) of the SEBI (Prohibition of Insider
Trading) Regulations, 2015.
48. DISCLOSURE OF FRAUDS IN THE BOARD'S REPORT U/S 143 OF THE
COMPANIES ACT, 2013
During the year under review, your Directors do not observe any
contract, arrangement and transaction which could result in a fraud;
your Directors hereby take responsibility to ensure you that the
Company has not been encountered with any fraud or fraudulent activity
during the Financial Year 2014-2015.
49. ACKNOWLEDGEMENTS
Your Directors wish to place on record their appreciation for and
gratitude to the State Bank of India for their valuable support and
co-operation.
Your directors also wish to place on record their appreciation of the
wholehearted and continued support extended by the shareholders,
investors, employees and workers of the company which had always been a
source of strength for the Company.
For and on behalf of the Board of Directors
RAMDAS GOYAL
DIN: 00150037
(Chairman)
Place: INDORE
Date: 25th August, 2015
Mar 31, 2014
Dear Members,
The Directors have pleasure in presenting their 28th Annual Report
together with the Audited Statement of Accounts for the year ended 31st
March, 2014.
(Amount in Rs.)
Particulars Current Year Previous Year
2013-2014) (2012-2013)
Profit/ (loss) for the year 53,54,832 3,68,041
Less: Depreciation 1,04,61,075 98,49,315
Profit/loss after Depreciation 1,58,15,907 (94,81,274)
Income Tax 55,24,300 -
(Net of MAT Credit)
(Less)Add: Provision for Deferred Tax (15,85,937) 12,56,445
Profit/Loss after Tax 1,18,77,577 (82,24,829)
Add/ (Less): Debit relating to
Previous years (3,227) (240)
Sundry balances written off - -
Bonus written back - -
Credit relating to previous years - -
Excess provision for Income Tax written back - -
Excess provision for fringe Benefit Tax - -
Less - Income Tax for earlier Year 95-96 - -
Carried to Balance Sheet 1,18,80,771 ( 82,25,069)
PERFORMANCE:
During the year under review, your Company achieved a Profit After Tax
of Rs. 1,18,77,577 against Rs. (82,24,829). Both the plants (Starch &
Dextrose) are running smoothly and satisfactorily at 100% capacity.
Efforts are being made to reduce power consumption by making necessary
changes. The D. G. Set is used to produce electricity whenever there is
power cut from M. P. E. B.
SHARE CAPITAL:
During the year under review,
1. Company sub-divided its existing preference share capital from Rs.
25,00,000 (Rupees Twenty Five Lacs Only) divided into 25,000 (Twenty
Five Thousand Only) 14% Cumulative Redeemable Preference Shares of Rs.
100/ - (Rupees Hundred Only) each to Rs. 25,00,000 (Rupees Twenty Five
Lacs Only) divided into 2,50,000 (Two Lacs and Fifty Thousand Only) 0%
Redeemable Preference Shares of Rs. Rs. 10/- (Rupees Ten Only) each.
2. Company's Authorised Equity Share Capital was increased by Rs.
3,25,00,000/- (Rupees Three Crores Twenty Five Lacs Only) divided into
32,50,000 (Thirty Two Lacs and Fifty Thousand Only) Equity Shares of
Rs. 10/ - (Rupees Ten Only) each from Rs. 6,50,00,000/- (Rupees Six
Crores Fifty Lacs Only) divided into 65,00,000 (Sixty Five Lacs Only)
Equity Shares of Rs. 10/- (Rupees Ten Only) each to Rs. 10,00,00,000/-
(Rupees Ten Crores Only) divided into 1,00,00,000 (One Crore) Equity
Shares of Rs. 10/- (Rupees Ten) each.
3. Company's Authorised 0% Redeemable Preference Share Capital was also
increased by Rs. 1,75,00,000/- (Rupees One Crore and Seventy Five Lacs
Only) divided into 17,50,000 (Seventeen Lacs and Fifteen Thousand Only)
0% Redeemable Preference Shares of Rs. 10/- (Rupees Ten) each to Rs.
2,00,00,000/ - (Rupees Two Crores Only) divided into 20,00,000 (Twenty
Lacs) 0% Redeemable Preference Shares of Rs. 10/- (Rupees Ten) each.
4. Company's Paid Up Equity Share Capital is Rs. 6,09,31,760/- (Rupees
Six Crore Nine Lacs Thirty One Thousand Seven Hundred Sixty Only)
divided into 60,93,176 (Sixty Lacs Ninty Three Thousand One Hundred and
Seventy Six) Equity Shares of Rs. 10/- (Rupees Ten) each.
5. The Company allotted 15,00,000 (Fifteen Lacs) 0% Redeemable
Preference Shares of Rs. 10/- (Rupees Ten) each amounting to Rs.
1,50,00,000 (Rupees One Crore Fifty Lacs Only) on 28th March, 2014.
PUBLIC DEPOSITS:
As on 31st March, 2014, the Company has accepted deposits from Public
in excess of the limits specified under Section 58A and 58AA of the
Companies Act, 1956 and Rules made there under, for which the Company
has made all the required arrangements for its due return, for the
Financial Year 2013-2014, the Company has duly filed a Return of
Deposits outstanding on the date of commencement of the Companies Act,
2013 with the Registrar of Companies, Madhya Pradesh and Chhattisgarh.
FINANCE:
The Company is availing a Cash Credit (hypothecation) limit of Rs. 5.5
Crores and Term Loan of Rs.23 Crores from State Bank of India,
Commercial Branch, Indore.
DIVIDEND:
In order to plough back profits of the Company, your directors do not
recommend any dividend for the year 2013-2014
EXPANSION:
Company started construction of its factory premises for New Plant for
manufacturing of Starch at Village Sejwaya, Ghatabillod, Dist. Dhar, M.
P. Company also appointed Shri Hariom Desai as consultant who has
sufficient knowledge of starch plant. Company has started taking
disbursement from State Bank of India and also paid advance to various
machine suppliers. The company is expected commercial production in
financial year 2014-15.
DIRECTORS:
During the year under review, due to some unavoidable circumstances and
practical difficulties in the smooth functioning of the business of the
Company, Dr. Damodar Modi, Chairman and Managing Director, four Whole -
Time Directors, Shri Ramdas Goyal, Shri Yogesh Kumar Agrawal, Shri
Ramesh Chandra Goyal and Shri Prakash Chandra Bafna, of the Company,
decided to not to take remuneration from the Company.
And therefore, the four Whole-Time Directors of the Company had
resigned, from the Board, in the capacity of Whole-Time Directors and
decided to continue in the capacity of Ordinary Directors on the Board
of the Company w.e.f. November, 2013.
DIRECTORS RETIRING BY ROTATION :
Following directors of the Company shall retire by rotation in the
ensuing Annual General Meeting. They are eligible to be re-appointed on
the Board of the Company and offer themselves for re-appointment and
that their re-appointment, if made, shall not be deemed to constitute a
break in their appointment as Directors/ Managing Director of the
Company.
1. Smt. Shashikala Mangal,
2. Shri Yogesh Kumar Agrawal
Further as per the provision of section 149 and 152 of the Companies
Act, 2013, Mr. Ashish Agrawal, Mr. Vinod Kumar Garg and Mr. Satish
Mangal Independent, non-executive directors of the Company has been
re-appointed for a period of 5 years, commencing from 01st October,
2014 to 30th September, 2019
LISTING AGREEMENT WITH STOCK EXCHANGE:
Pursuant to requirements of the Listing Agreement, the Company declares
that its Equity Shares are listed on the Bombay Stock Exchanges Ltd.,
Mumbai. The Company confirms that it has paid listing fee due to the
above Stock Exchange for the year 2014-15.
DIRECTORS' RESPONSIBILITY STATEMENT:
The Directors confirm that:
I. In preparation of the Annual Accounts, the applicable Accounting
Standards have been followed along with proper explanation relating to
material departures, if any.
II. They have selected the 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 under review and for the
Profit of the Company for the period;
III. They 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. They have prepared Annual Accounts on a going concern basis;
CORPORATE GOVERNANCE:
The Company has complied with all mandatory provisions of Corporate
Governance as prescribed under the Listing Agreement of the Stock
Exchange with which the Company is listed. Pursuant to Clause 49 of
Listing Agreement with the Stock Exchange, a separate report on
Corporate Governance is given as a part of the Annual Report.
AUDIT COMMITTEE:
The company has formed an Audit committee as required under Section
292A of the Companies Act, 1956. Four Meetings of the committee were
held during the year. Following are the members of the committee:
1. Shri Ashish Agrawal - Chairman, (Independent Director)
2. Shri Vinod Kumar Garg - Member (Independent Director)
3. Shri Yogesh Kumar Agrawal - Member (Whole-Time Director)
STATUTORY AUDITORS:
M/s. Sunil Chandra Goyal and Company, Chartered Accountants having Firm
Registration Number 002658C, Indore, Statutory Auditors of the Company,
holds office until the conclusion of the ensuing Annual General Meeting
and is eligible for re-appointment up to the conclusion of thirty first
Annual General Meeting to be held in the year 2017. M/ s. Sunil Chandra
Goyal and Company, Chartered Accountants having Firm Registration
Number 002658C, Indore have confirmed that there appointment, if made,
would be in conformity of Section 139 of the Companies Act, 2013 read
along with Rule 4 of the Companies (Audit and Auditors) Rules, 2014,
your Board recommends their re-appointment as Statutory Auditors of the
Company.
COMMENTS ON STATUTORY AUDITOR'S REPORT:
The remarks in Statutory Auditors' Report are self explanatory.
PARTICULARS OF EMPLOYEES:
There was no employee during the year drawing remuneration in excess of
the ceilings prescribed u/s. 217 (2A) of the Companies Act, 1956.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION AND
FOREIGN EXCHANGE EARNINGS:
A statement giving information as required u/ s. 217 (1E) of the
Companies Act, 1956 is annexed and form part of this report (Annexure
"A").
ACKNOWLEDGEMENT:
Your Directors wish to express their sincere appreciation for the
co-operation and support received from State Bank of India. Your
Directors also record their appreciation for the services rendered by
the employees at all levels and the Shareholders, Customers & Dealers
for their continued co-operation through-out the year.
For and on Behalf of the Board
Sd/-
Dr. Damodar Modi
Chairman & Managing Diretcor
Place: Indore
Date : 25th August, 2014
Mar 31, 2012
TO THE MEMBERS
The Directors have pleasure in presenting their 26th Annual Report
together with Audited Statement of Accounts for the year ended
31.3.2012.
2011-2012 2010-2011
(Rs.) (Rs.)
Profit/(loss) for the year 14059511 53453906
Less: Depreciation 8955007 8610810
Profit/loss after Depreciation 5104504 44843096
Income Tax 2504936 16258247
(Net of MAT Credit)
(Less)/Add: Provision for Deferred Tax 1181168 1370335
Profit/Loss after Tax 3780736 29955184
Add/(Less): Debit relating to
Previous years 32871 (186545)
Sundry balances written off 1063043 601
* Bonus written back 119376 112723
Credit relating to previous years 972997 26227
Excess provision for Income
Tax written back - 13974
Excess provision for fringe
Benefit Tax -
Less-Income Tax for earlier Year 95-96 _ (153649)
Carried to Balance Sheet 2671861 29768488
PERFORMANCE :
Both the plants (Starch & Dextrose) are running smoothly and
satisfactorily at 100% capacity.
Efforts are being made to reduce power consumption by making necessary
changes. The D.G. Set is used to produce electricity whenever there is
power cut from MPEB.
FINANCE :
The Company is availing a C.C. loan (hypothecation) limit of Rs. 5.5
crores and Term Loan upto 18 Crores from State Bank of India,
Commercial Branch, Indore.
ACCOUNTING STANDARD:
The Institute of Chartered Accountants of India has introduced various
Accounting Standards in the year under review to make the financial
statements and disclosure in line with the International accounting
practices and disclosures. Most of these Accounting standards are of
mandatory in nature and the company has incorporated them in the
accounts accordingly.
Of the various Accounting standards, the main Accounting standards
implemented during the year by the company are: Accounting standards 17
- Segment Reporting, Accounting Standard 18, related party disclosure
and Accounting standard 22-Accounting for Taxes on income. Accounting
standard- 28, Impairment of assets. Accounting standard-29, Provisions,
Contingent liabilities & Contingent assets.
MANAGEMENT:
Three of your Directors' Shri Prakash Bafna, Shri Vinod Garg and Shri
Ashish Agrawal retire by rotation. They are eligible and offer
themselves for re-appointment and that their re- appointment as such
shall not be deemed to constitute a break in their appointment as
Director of the Company.
LISTING AGREEMENT WITH STOCK EXCHANGE:
Pursuant to requirements of the listing Agreement, the Company declares
that it's Equity Shares are listed on the Stock Exchange Ltd., Mumbai.
The Company confirms that it has paid listing fee due to the above
Stock Exchange for the year 2012-13.
DIRECTORS' RESPONSIBILITY STATEMENT:
The Directors confirm that:
I. In preparation of the Annual Accounts, the applicable Accounting
Standards have been followed along with proper explanation relating to
material departures, if any.
II. They have selected the 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 under review and for the
Profit of the Company for the period;
III. They 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. They have prepared Annual Accounts on a going concern basis;
CORPORATE GOVERNANCE :
The Company has complied with all mandatory provisions of Corporate
Governance as prescribed under the Listing Agreements of the Stock
Exchange with which the Company is listed. Pursuant to Clause 49 of
Listing Agreement with the Stock Exchange, a separate report on
Corporate Governance is given as a part of the Annual Report along with
the Auditors' statement on its compliance.
AUDIT COMMITTEE
The company has formed an Audit committee as required U/S. 292A of the
Co's Act 1956, as amended by Co's (amendment) Act-2000. The committee
has been reconstituted on 27.05.2011, where in Shri Sulabh Goyal has
resigned & Shri Ashish Agrawal appointed as Chairman in his place. Now
Committee consists of following Directors:
1. Shri Ashish Agrawal - Chairman,
Independent Director
2. Shri Vinod Kumar Garg-Member.
Independent Director
3. Shri Yogesh Kuma Agrawal - Member.
Wholetime Director
4 Meetings of the committee were held during the year.
AUDITORS :
You have to appoint Auditors for the current financial year and to fix
their remuneration. M/s. Sunil Chandra Goyal & Co., Chartered
Accountants, Indore the Retiring Auditors are eligible for
re-appointment. There appointment if made, will be within the
prescribed limit specified u/s. 224 (1B) of the Companies Act-1956.
COMMENTS ON AUDITORS REPORT :
The remarks in Auditors' Report are self explanatory.
PARTICULARS OF EMPLOYEES :
There was no employee during the year drawing remuneration in excess of
the ceilings prescribed u/s. 217 (2A) of the Companies Act-1956.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION AND
FOREIGN EXCHANGE EARNINGS :
A statement giving information as required u/s. 217 (1E) of the
Companies Act-1956 is annexed and form part of this report (Annexure
"A").
ACKNOWLEDGEMENT :
Your Directors wish to express their sincere appreciation for the
co-operation and support received from State Bank of India. Your
Directors also record their appreciation for the services rendered by
the employees at all levels and the Shareholders, Customers & Dealers
for their continued co-operation through- out the year.
For and on Behalf of the Board
Place . Indore Dr. Damodar Modi
Date : 5th September 2012 Chairman
Mar 31, 2011
The Directors have pleasure in presenting their 25th Annual Report
together with Audited Statement of Accounts for the year ended
31.3.2011.
2010-2011 2009-2010
(Rs.) (Rs.)
Profit/(loss) for the year 53453906 25346440
Less: Depreciation 8610810 8377665
Profit/loss after Depreciation 44843096 16968775
Income Tax 16258247 7257430
(Net of MAT Credit)
(Less)/Add: Provision for Deferred Tax 1370335 (1974573)
Profit/Loss after Tax 29955157 11685918
Add/(Less): Debit relating to
Previous years (186545) (2063399)
Sundry balances
written off 601 (53426)
Bonus written back 112723 (675540)
Credit relating to
previous years 26227 368098
Excess provision for Income Tax
written back 13974 267825
Excess provision for fringe Benefit Tax - 12560
Less-Income Tax for earlier Year 95-96 (153649) -
Carried to Balance Sheet 29768488 9542035
PERFORMANCE:
Both the plants (Starch & Dextrose) are running smoothly and
satisfactorily at 100% capacity.
Efforts are being made to reduce power consumption by making necessary
changes. The D.G. Set is used to produce electricity whenever there is
power cut from MPEB.
FINANCE :
The Company is availing a C.C. loan (hypothecation) limit of Rs. 5.5
crores from State Bank of India, Commercial Branch, Indore.
ACCOUNTING STANDARD:
The Institute of Chartered Accountants of India has introduced various
Accounting Standards in the year under review to make the financial
statements and disclosure in line with the
International accounting practices and disclosures. Most of these
Accounting standards are of mandatory in nature and the company has
incorporated them in the accounts accordingly. Of the various
Accounting standards, the main Accounting standards implemented during
the year by the company are: Accounting standards 17 - Segment
Reporting, Accounting Standard 18, related party disclosure and
Accounting standard 22-Accounting for Taxes on income. Accounting
standard- 28, Impairment of assets. Accounting standard-29, Provisions,
Contingent liabilities & Contingent assets.
MANAGEMENT:
Three of your Directors' Dr. Damodar Modi, Shree Ramdas Goyal & Shree
Satishchandra Mangal retire by rotation. They are eligible and offer
themselves for re-appointment and that their re-appointment as such
shall not be deemed to constitute a break in their appointment as
Director of the Company.
LISTING AGREEMENT WITH STOCK EXCHANGE:
Pursuant to requirements of the listing Agreement, the Company declares
that it's Equity Shares are listed on the Stock Exchange Ltd., Mumbai.
The Company confirms that it has paid listing fee due to the above
Stock Exchange for the year 2011-2012.
DIRECTORS' RESPONSIBILITY STATEMENT:
The Directors confirm that:
I. In preparation of the Annual Accounts, the applicable Accounting
Standards have been followed along with proper explanation relating to
material departures, if any.
II. They have selected the 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 under review and for the
Profit of the Company for the period;
III. They 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. They have prepared Annual Accounts on a going concern basis;
CORPORATE GOVERNANCE :
The Company has complied with all mandatory provisions of Corporate
Governance as prescribed under the Listing Agreements of the Stock
Exchange with which the Company is listed. Pursuant to Clause 49 of
Listing Agreement with the Stock Exchange, a separate report on
Corporate Governance is given as a part of the Annual Report along with
the Auditors' statement on its compliance.
AUDIT COMMITTEE
The company has formed an Audit committee as required U/S. 292A of the
Co's Act 1956, as amended by Co's (amendment) Act-2000. The committee
has been reconstituted on 27.05.2010, where in Shri Sulabh Goyal has
resigned & Shri Ashish Agrawal appointed as Chairman in his place.
Now Committee consists of following Directors:
1. Shri Ashish Agrawal -Chairman, Independent Director
2. Shri Vinod Kumar Garg- Member. Independent Director
3. Shri Yogesh Kuma Agrawal - Member. Wholetime Director
7 Meetings of the committee were held during the year.
AUDITORS :
You have to appoint Auditors for the current financial year and to fix
their remuneration. M/s. Sunil Chandra Goyal & Co., Chartered
Accountants, Indore the Retiring Auditors are eligible for
re-appointment. There appointment if made, will be within the
prescribed limit specified u/s. 224 (1B) of the Companies Act-1956.
COMMENTS ON AUDITORS REPORT :
The remarks in Auditors' Report are self explanatory.
PARTICULARS OF EMPLOYEES :
There was no employee during the year drawing remuneration in excess of
the ceilings prescribed u/s. 217 (2A) of the Companies Act-1956.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION AND
FOREIGN EXCHANGE EARNINGS :
A statement giving information as required u/s. 217 (1E) of the
Companies Act-1956 is annexed and form part of this report (Annexure
"A").
ACKNOWLEDGEMENT :
Your Directors wish to express their sincere appreciation for the
co-operation and support received from State Bank of India. Your
Directors also record their appreciation for the services rendered by
the employees at all levels and the Shareholders, Customers & Dealers
for their continued co-operation through- out the year.
For and on Behalf of the Board
Place Indore Dr. Damodar Modi
Date : 3rd September 2011 Chairman
Mar 31, 2010
The Directors have pleasure in presenting their 24th Annual Report
together with Audited Statement of Accounts for the year ended
31.3.2010.
2009-2010 2008-2009
(Rs.) (Rs.)
Profit/floss) for the year 25346440 20200520
Less : Depreciation 8377665 8054102
Profit/loss after Depreciation 16968775 12146418
Income Tax 7257430 4531100
(Net of MAT Credit)
(Less)/Add: Provision for Deferred Tax (1974573) (241287)
Fringe Benefit Tax - 117376
Profit/Loss after Tax 11685918 7731229
Add/(Less): Debit relating to
Previous years (2063399) (576981)
Sundry balances written off (53426) (29673)
Bonus written back (675540) 123626
Credit relating to previous years 368098 192422
Excess provision for Income Tax written
back 267825 -
Excess provision for fringe Benefit Tax 12560 -
Carried to Balance Sheet 9542035 7499269
PERFORMANCE:
Both the plants (Starch & Dextrose) are running smoothly and
satisfactorily at 100% capacity.
Efforts are being made to reduce power consumption by making necessary
changes. The D.G. Set is used to produce electricity whenever there is
power cut from MPEB.
FINANCE :
The Company is availing a C.C. loan (hypothecation) limit of 5.5
crores from State Bank of India, Commercial Branch, Indore.
ACCOUNTING STANDARD:
The Institute of Chartered Accountants of India has introduced various
Accounting Standards in the year under review to make the financial
statements and disclosure in line with the International accounting
practices and disclosures. Most of these Accounting standards are of
mandatory in nature and the company has incorporated them in the
accounts accordingly.
Of the various Accounting standards, the main Accounting standards
implemented during the year by the company are: Accounting standards 17
- Segment Reporting, Accounting Standard 18, related party disclosure
and Accounting standard 22- Accounting for Taxes on income. Accounting
standard -28, Impairment of assets. Accounting standard -29,
Provisions, Contingent liabilities & Contingent assets.
MANAGEMENT:
Three of your Directors Shree Rameshchandra Goyal, Smt. Pramila
Jajodia & Smt. Shashikala Mangal retire by rotation. They are eligible
and offer themselves for re-appointment and that their re-appointment
as such shall not be deemed to constitute a break in their appointment
as Director of the Company.
Two of your Directors Shri Sanjeev Gupta-Whole time Director & Shri
Sulabh Goyal -Independent Director have resigned & their resignations
has been accepted by the Board.
Shri Satish Chandra Mangal, an Independent Director was appointed as an
additional Director on 31.07.2010 under section 260 of Companies
Act-1956. You have to appoint him in this General Meeting..
LISTING AGREEMENT WITH STOCK EXCHANGE :
Pursuant to requirements of the listing Agreement, the Company declares
that its Equity Shares are listed on the Stock Exchanges Ltd., Mumbai.
The Company confirms that it has paid listing fee due to the above
Stock Exchange for the year 2010-2011.
DIRECTORS RESPONSIBILITY STATEMENT:
The Directors confirm that:
I. In preparation of the Annual Accounts, the applicable Accounting
Standards have been followed along with proper explanation relating to
material departures, if any.
II. They have selected the 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 under review and for the
Profit of the Company for the period;
III. They 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. They have prepared Annual Accounts on a going concern basis;
CORPORATE GOVERNANCE:
The Company has complied with all mandatory provisions of Corporate
Governance as prescribed under the Listing Agreements of the Stock
Exchange with which the Company is listed. Pursuant to Clause 49 of
Listing Agreement with the Stock Exchange, a separate report on
Corporate Governance is given as a part of the Annual Report along with
the Auditors statement on its compliance.
AUDIT COMMITTEE
The company has formed an Audit committee as required U/ S. 292A of the
Cos Act 1956, as amended by Cos (amendment) Act-2000. The committee
has been reconstituted on 27.05.2009, where in Shri Sulabh Goyal has
resigned & Shri Ashish Agrawal appointed as Chairman in his place.
Now Committee consists of following Directors:
1. Shri Ashish Agrawal - Chairman, Independent Director
2. Shri Vinod Kumar Garg - Member. Independent Director
3. Shri Yogesh Kuma Agrawal - Member.
Wholetime Director
Shri Sanjeev Gupta has also resigned with effect from 25.02.2010 & Shri
Yogesh Agrawal appointed in his place.
7 Meetings of the committee were held during the year.
AUDITORS :
You have to appoint Auditors for the current financial year and to fix
their remuneration. M/s. Sunil Chandra Goyal & Co., Chartered
Accountants, Indore the Retiring Auditors are eligible for
re-appointment. There appointment if made, will be within the
prescribed limit specified u/s. 224 (1B) of the Companies Act-1956.
COMMENTS ON AUDITORS REPORT:
The remarks in Auditors Report are self explanatory.
PARTICULARS OF EMPLOYEES:
There was no employee during the year drawing remuneration in excess of
the ceilings prescribed u/s. 217 (2A) of the Companies Act-1956.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION AND
FOREIGN EXCHANGE EARNINGS:
A statement giving information as required u/s. 217 (1E) of the
Companies Act-1956 is annexed and form part of this report
(Annexure "A").
ACKNOWLEDGEMENT:
Your Directors wish to express their sincere appreciation for the
co-operation and support received from State Bank of India. Your
Directors also record their appreciation for the services rendered by
the employees at all levels and the Shareholders, Customers & Dealers
for their continued co-operation throughout the year.
For and on Behalf of the Board
Place : Indore Dr. Damodar Modi
Date : 4th September 2010 Chairman
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