| Dear Members,
The Company's performances for the period under review was satisfactory
considering the challenges and severe financial constraints, which is
summarized below :
FINANCIAL RESULTS
Particulars Current Previous
Year Year
(Rs. In Lacs) (Rs. in Lacs)
Profit/(Loss) before
Depreciation, Interest and Tax 816.24 807.62
Less: Depreciation 366.42 297.42
Profit/(Loss) before
Interest & Tax 449.82 510.20
Less: Interest 236.86 238.19
Profit/(Loss) before Taxation 212.96 272.01
Add : Exceptional Items
1. Provision for Bad &
Doubtful Debts 47.89 -
2. Provision for Diminution in
Value of Shares 9.51 -
Less: MAT Credit - 31.59
Less : Deferred Tax 102.04 (73.30)
Less : Provision for Income tax 49.00 2.46
Profit/(Loss) after Taxation 119.32 311.26
PERFORMANCE
During the year under review, your company achieved a turnover of Rs
69.28 Crores as against Rs. 78.66 Crores in the preceding year, which
shows the current trend in our sector of industry. The Company has
registered a profit after tax of Rs 1.19 Crore as against profit of Rs
3.11 Crore in the previous year. The reserves & surplus come to Rs.
37.70 Crores which substantially increased the net worth of the
company.
Your company have achieved a satisfactory turnover during the year, but
the following constraints persist : Competition continues to be intense
due to low entry barriers resulting in smaller players under-quoting to
capture the small basket of projects. Further government inaction,
delays in awarding projects, delays in clearances by various government
agencies, bureaucratic apathy to rising inflation leading to an
increase in prices of major construction materials and delay in
recoveries from clients, all these had a dampening effect on the
overall performance of the Company during the year under review. These
exerted pressures on the working capital management also and resulted
in higher receivables during the entire year.
DIVIDEND
The Company does not have any distributable surplus during the year.
The Board accordingly does not recommend any dividend.
CORPORATE GOVERNANCE:
The Board has followed the principles of good governance and emphasizes
transparency, integrity and accountability to the full extent. We
believe the good governance is voluntary and self-disciplining. The
management of your company endeavours to be progressive, competent and
trustworthy, for customers and other stakeholders, while reflecting and
respecting the best of Indian values in its conduct. The company took
primary steps purely focused on the improving the financial health of
the company to attract the best professional from the Industry. A
separate section titled 'Annexure II' is annexed hereto and forms a
part of the Report.
DIRECTORS RESPONSIBILITIES STATEMENT:
As required under section 217(2AA) of the Companies Act, 1956, on the
basis of compliance certificate made by management of the Company and
subject to disclosure in the annual accounts, as also on the basis of
the discussion with the Statutory Auditor of the Company from time to
time, the Board of Directors of the Company Confirms:
a) that in the preparation of the annual accounts, the applicable
accounting standard has been followed;
b) that the Directors have selected such accounting policies and
applied them consistently (except unless otherwise stated) and made
judgements 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.
c) that the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities.
d) that the Directors have prepared the annual accounts on a going
concern basis.
AUDITORS' OBSERVATIONS
The observations made in the Auditors Reports are self explanatory and
therefore, do not call for any further comments or explanations.
DIRECTORS
As per the provisions of the Companies Act and the provisions of
Articles of Association of the Company Dr. (Mrs.) Zarin P. Dadina
(DIN: 01848179) of the Company will retire by rotation at the ensuing
Annual General Meeting and being eligible, has offered herself for
reappointment.
SECRETARIAL COMPLIANCE CERTIFICATE
The Compliance Certificate received in accordance with provisions of
sections 383A(1)(a) of the Companies Act 1956 read with the Companies
(Compliance Certificate) Rules, 2001 being attached to the Directors
Report.
INFORMATION PURSUANT TO SECTION 217 OF THE COMPANIES ACT, 1956
Information pursuant to clause (e) of sub-section (1) of Section 217 of
the Companies Act, 1956 read with Companies (Disclosure of Particulars
in the Report of Board of Directors) Rules, 1988 and forming part of
the Directors' Report for the year ended 31st March, 2014 are given in
Annexure I of this report.
The details of employees of the Company in receipt of remuneration in
excess of the limits under section 217(2A) of the Companies Act, 1956
is not applicable during the period under review.
AUDITORS
The Auditors M/s. L. N. Todi & Co. retires at the conclusion of the
ensuing Annual General Meeting and being eligible offers themselves for
re-appointment.
ACKNOWLEDGMENTS
The Board acknowledges the understanding and support shown by its
Bankers, Suppliers, Customers, and Shareholders during the period under
review. The Directors also appreciate and value the contribution made
by all Employees of your Company.
For and on behalf of the Board
Place : Kolkata Pessi N Dadina
Date: 28th August, 2014 Chairman & Managing Director | 