| The Directors have the pleasure of presenting this 27th Annual Report
along with the Audited Financial Statements and the Auditor's Report
thereon for the Financial Year ended 30th June 2012.
FINANCIAL PERFORMANCE: (Rs.)
Particulars 2011-12 2010-11
Gross Total Income 212,066,703 206,424,767
Expenses 200,001,566 232,056,716
Profit/(Loss) before financial
expenses, depreciation and 12,065,138 25,631,949
taxation
Depreciation 6,719,856 33,587,272
Net Profit 12,065,138 160,437,762
BIFR:
Members are aware that the net worth of the Company had been completely
eroded and the Company was registered as sick industrial Company vide
No. 57/2000 with BIFR.
Hon'ble BIFR approved the rehabilitation Scheme filed with it and
passed the final order on 8th June, 2011 to implement the said
Rehabilitation Scheme. And the Company is implementing the Scheme and
approaching different government authorities to seek the grants and
relief's as directed by Hon'ble BIFR in the Rehabilitation Package.
DIVIDEND:
Your Directors could not recommend any dividend for the financial year
due to accumulated losses.
DIRECTORS
During the year Mr. Vangala Reddy Shyam Sunder and Mr. Venkateswara Rao
Gudipudi retire by rotation at the ensuing Annual General Meeting and
being eligible offer themselves for re- appointment. Mr. Ch. Ramesh
Babu has been submitted resignation to the office of the Director.
Details of Directors seeking re appointment at the forthcoming AGM
(In Pursuance of Clause 49 (IV) (G) (i) of the Listing Agreement)
Particulars Vangala Shyam Sunder Reddy
Date of Birth 08/08/ 1966
Date of Appointment 26 / 12/2011
Expertise in specific functional
areas Excellent academic record with
the high level proficiency and
legal acumen and have more than
18 years of rich experience in
the field of civil construction
in India.
Qualifications B.A. L.L.B.
No. of Shares held as on March
31, 2011 Nil
Directorships held in other
companies (excluding private 2
limited and foreign companies)
Particulars Gudipudi Venkateswara Rao
Date of Birth 12/01/1959
Date of Appointment 26 / 12/2011
Expertise in specific functional
areas Vast experience in general
management of Companies.
Qualification B.Com, L.L.B.
No. of Shares held as on
March 31, 2011 Nil
Directorships held in other
companies 3
DIRECTORS' RESPONSIBILITY STATEMENT:
The Directors of your Company hereby report:
(i) that in the preparation of Annual Accounts for the year ended 30th
June, 2012, the applicable accounting standards except AS-15, have been
followed along with the proper explanation relating to material
departures.
(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 30th
June, 2012 and of the profit and loss of the company for that period.
(iii) that the directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the company and
for preventing and detecting fraud and other irregularities.
(iv) that the directors have prepared the annual accounts on a going
concern basis.
FIXED DEPOSITS:
During the Financial year, company has not accepted any deposits
falling with the preview of Section 58A of the Companies Act, 1956 read
with Companies (Acceptance of Deposits) Rules, 1975.
AUDITORS:
M/s. Rambabu & Co, Chartered Accountants, the Statutory Auditors of
your Company, who retires at the conclusion of the ensuing Annual
General Meeting, and being eligible, expressed their willingness for
re-appointment. The board recommends their re-appointment.
AUDITORS QUALIFICATION
With regard to Point No. 9 (b) of Annexure to Auditor's Report, the
outstanding sales tax amounts to old period during the period when the
Company became sick and the Hon'ble BIFR ordered the Department to
consider the waiver of the same and the same is pending before the
Authorities.
PARTICULARS OF EMPLOYEES:
There are no employees drawing remuneration exceeding the limits as
specified under the provisions of Section 217 (2A) of the Companies
Act, 1956, read with the Companies (Particulars of Employees) Rules,
1975.
CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY ABSORPTION
AND FOREIGN EXCHANGE EARNINGS/OUTGO:
2011-12 2010-11
Conservation of Energy
Electricity
Purchased Units in Lakhs 6,555,746 7,286,713
Total Rupees in Lakhs 28,047,839 32,914,043
Rate per Unit 4.28 4.52
Own Generation Nil Nil
Power Consumption for MT (in units) 97.35 103.94
Research and Development Nil Nil
Technology Absorption Nil Nil
Foreign Exchange Earnings and Outgo Nil Nil
SECRETARIAL COMPLIANCE CERTIFICATE:
Certificate from the Practicing Company Secretary as stipulated in
Section 383A of the Companies Act, 1956 read with the Companies
(Compliance Certificate) Rules, 2001, attached as Annexure-I to the
Directors' Report.
MANAGEMENT DISCUSSION AND ANALYSIS:
Management Discussion and Analysis is set out separately for the
information of the shareholders in Annexure-II of the Director's
Report
CORPORATE GOVERNANCE:
A report on Corporate Governance, in accordance with Clause 49 of the
Listing Agreement with the Stock Exchanges is set out separately for
the information of the shareholders in Annexure-III.
ACKNOWLEDGEMENTS:
Your Directors take this opportunity to record their appreciation for
the continuous support and co-operation extended by the customers and
bankers. The Directors also acknowledge the confidence reposed by the
investors and shareholders in the Company.
For and on behalf of the Board
Date : 14.11.2012
Place : Hyderabad K.S.N.PRASAD
MANAGING DIRECTOR | 