| The Directors are pleased to present the Annual Report for the year
2008-09 on the business and operations of t. Company together with
Balance Sheet as at 31st March 2009 and Profit and Loss Account for the
year ended on that date.
OPERATING PERFORMANCE
(Rs. In Lacs)
2008-09 2007-08
Total Income 2011.84 4247.85
Operating Profit 208.68 661.30
Less: Interest 297.36 248.10
Cash Accruals -88.68 413.20
Less: Depreciation 308.09 307.66
Profit/Loss before Tax -396.77 105.54
Provision for Taxation
(including FBT) 3.32 13.84
Profit/Loss after Tax -400.09 91.70
During the year under review, the auto industry witnessed turbulent
times, which affected the performance of automobile majors, and cheaper
import of crankshafts from China. Your Company also suffered on account
of decline in demand due to these factors. The Government of India also
imposed dumping duty on cheap crankshafts import. The Government of
India announced stimulus packages for revival of the industry and the
demand for vehicles and auto components is reviving.
FUTURE OUTLOOK AND PROSPECTS
With the announcement of stimulus packages by the Government of India
the automobile industry is showing signs of revival and outlook for the
next couple of years remains positive. The new crankshafts machining
line is likely to commence commercial production by January 2010, and
shall improve the profitability of the Company.
However, the availability and price of steel are the major cause of
concern for the industry.
DIRECTORS
Your Directors deeply condole the demise of Mr. N.S. Parulekar and
accordingly he has ceased to be a Director of the Company. Your Board
places on record its appreciation of the services rendered by Mr.
Parulekar during his association with the company.
Mr. Anil Sharma, Mr. Sushil Nanda and Mr. N. Sinha, Directors retire by
rotation and being eligible offer themselves for re- election.
Mr. Deshbir Singh, Managing Director is proposed to be reappointed as
Managing Director for a further period of 5 years with effect from 1st
November 2009.
AUDITORS AND AUDITORSREPORT
M/s. J.K. Arora & Co. Chartered Accountants hold office until the
conclusion of the ensuing Annual General Meeting and have signified
that they are eligible for re-appointment.
The observations of the auditors have been explained by way of notes to
accounts.
PERSONNEL
During the year, none of the employee was in receipt of remuneration as
prescribed under section 217(2A) of the Companies Act, 1956. The
industrial relations during the year remained cordial.
I DIRECTORS RESPONSIBILITY STATEMENT
our Directors declare:
1. that in the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures.
2. that the Directors had selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and Fair view of the state
of affairs of the company at the end of the financial year and of the
profit and loss of the company for that period.
3. that the directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of Companies Act, 1956 for safeguarding the assets of the
company and for preventing and detecting frauds and other
irregularities.
4. that the directors had prepared the annual accounts on a going
concern basis.
ACKNOWLEDGEMENTS
Your Directors" place on record the assistance extended by All India
Financial Institutions, Banks, PICUP, the Central and State Government
of Uttar Pradesh, and customers of the company.
Your Directors are grateful to the shareholders for their continued
support.
For and on Behalf of the Board
DESHBIR SINGH
CHAIRMAN & MANAGING DIRECTOR
Place : NOIDA
Dated : 31.08.2009
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