| The Directors present the 37* Annual Report together with the Audited
Accounts of the Company for the Financial Year 2012-13.
Operating Results:
The Gross income from operations during the year under review was Rs.
649 lakhs as against Rs. 434 lakhs in the previous year. The Company
made a profit of Rs.332 lakhs as against Rs.90 lakhs in the previous
year.
The Company has preferred claims against various Clients to reduce
cumulative loss. Majority of the cases are pending in arbitration
proceedings. One of the claims pertaining to West Bengal was settled
during this period. The progress in the arbitration cases is being
closely watched. The Company is hopeful of getting favourable
decisions so as to realize substantial portion of the claims.
Liabilities with Banks & Other Financial Institutions
The Company is making earnest efforts to reduce its liabilities to
creditors, banks and fixed deposit holders. During the year part of the
liabilities were discharged. In regard to the One-Time Settlement
proposed for settlement of dues to the consortium banks the matter was
being actively followed up. In the light of certain discussions with
the banks certain improvements were also made. The settlement is under
their active consideration.
Existing project
The Company has completed all projects under execution and there are no
projects remaining to be executed. At present the Company is engaged in
settlement of outstanding liabilities for which resources are to be
found from arbitration awards and through liquidation of amounts due to
the Company. The Company will be able to undertake any new projects
only after liquidating all the liabilities and getting new lines of
credit from the Banks.
Fixed Deposits
At the end of the year the total outstanding fixed deposit was Rs.
14.78 lakhs. Earnest efforts are being taken to pay off the amount at
the earliest.
Directors' Responsibility Statement pursuant to Section 217(2AA) of the
Companies Act, 1956.
The Board of Directors hereby confirms:
1. that in the preparation of the annual accounts, applicable
accounting standards were followed with suitable procedure for material
departure.
2. that the Directors have selected such accounting policies and
applied them consistently and made judgments and estimates that are
reasonable and prudent, so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit or loss of the Company for that period.
3. that the Directors have taken adequate and proper care tor the
maintenance of 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, and,
4. that the Directors have prepared the annual accounts on a going
concern basis.
Particulars of Employees:
During the year 2012-13 no employee of the Company was in receipt of
remuneration in excess of the limit prescribed in Sub-section (2A) of
Section 217 of the Companies Act, 1956 read with Companies (Particulars
of Employees) Rules 1975.
Directors
Shri. E.S. Menon and Shri. Sunny C Madathil Directors, will retire at
the ensuing Annual General Meeting and being eligible, offers
themselves for re-election.
The tenure of Shri. Tomy C Madathil, as Managing Director will expire
at the ensuing Annual General Meeting. It is proposed to re-appoint him
for a further period of three years.
Auditors
M/s. P.C. Varghese & Co., Chartered Accountants, Auditors of the
Company, retire at the ensuing Annual General Meeting. They have not
given their consent for the re-appointment.
We are proposing to appoint M/s Sankar & Moorthy, Chartered
Accountants, Ernakulam, who have given their consent for the purpose to
accept of office of the Statutory Auditors, for auditing the accounts
of 2013-14.
Bankers
Your Directors place on record their sincere gratitude to the
Consortium of Banks consisting of State Bank of India, Syndicate Bank,
Union Bank of India and Dena Bank, for their co-operation and
confidence reposed on the Company.
Particulars pursuant to Section 217(1) (e) of the Companies Act, 1956
read with Companies (Disclosure of Particulars in the Report of the
Board of Directors) Rules, 1988:
a. Conservation of Energy:
Energy conservation measures are taken in all activities of the Company
by careful monitoring and implementation of suitable measures for
optimizing energy consumption.
b. Technology Absorption:
On account of the nature of operations of the Company, no special
efforts have been put in this regard.
c. Foreign Exchange earnings and outgo:
No foreign exchange was used or earned during the year and previous
year.
Acknowledgement
Your Directors thank the Central and State Governments, Financial
Institutions, Financial Agencies, Stock Exchanges, Sub-contractors and
their staff, Material Suppliers, Consultants, Clients, Deposit Holders
and Shareholders for their continued support and co-operation. The
Directors also place on record their appreciation for the services
rendered by employees at all levels.
For and on behalf of the Board of Directors
Sd/-
Kochi V.C. ANTONY
241" June 2013 Chairman | 