| To The Members,
The have pleasure in presenting to you the Annual Report along with the
audited accounts for the year ended on 31st March 2013.
FINANCIAL RESULTS
(Amount in Rs.)
Sr. Particulars 31.03.2013 31.03.2012
No.
1. REVENUE 21,193,055 224,189,153
2. Total expenditure 21,965,410 229,857,497
3. Profit/(Loss) before tax (772,355) (5,668,344)
Current Tax
Deferred tax liabilities 122,190 24,068
5. Profit after tax (650,165) (5,692,412)
DIVIDEND
In view of the losses incurred during the year your Board do not
recommend any dividend for the year.
REVIEW OF OPERATION AND FUTURE PROSPECTS
During the year under review the activities of the company was at the
lowest for last many years, and turnover touched as low of Rs.
2,11,93,055/- as compared to previous years turnover Rs. 224,189,153/-.
The Company has concentrated its goal of consolidating and
strengthening its marketing network, delivering quality products and
cutting cost wherever possible. The net Loss after tax is Rs.
6,50,165/- has been increased due to adjustment of previous Year
losses, increase cost of material and variation in the labour policy.
The Company is planned to shift its whole operations to its new project
location at MIDC, Nardhana Industrial Area, Dist. Dhule. As the
company's plant and machinery at present location are turned into scrap
and these are written down fully. The only asset left at the present
location is land and building. Further more the governments is not
provided any subsidy or exemption to the industry and in this recession
time it is very difficult for the company to compete with others due to
its increase cost of material.
NEW PUNT
Your Company is undertaking continuous endeavors for expansion of its
domestic and overseas customers by implementing new facilities. For
establishing manufacturing facilities, your Company has started work
for its Nardhana Plant. The Company has already purchased land situated
at MIDC, Nardhana Industrial Area, Dist. Dhule and taking off
possession from MIDC Authorities. The power reached and water is still
waiting to the site and the Company will start building construction
activity there. The company expects to start production activity there
in the current financial year 2013 -14. Annual Report 2012-13
DIRECTORS
Shri Sachin Sharma and Shri Giriraj Prasad Sharma are being liable for
retire by rotation and offer themselves to appoint further as Directors
of the Company.
The brief particulars of all directors, for which approval of members
for their appointment or re-appointment are sought, have been provided
in the Notice of Annual General Meeting pursuant to Clause 49 of the
Listing Agreement relating to Corporate Governance.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the provisions of Sec 217(2AA) of Companies Act, 1956, the
directors state that: that in preparation of the annual accounts, the
applicable accounting standards have been followed along with proper
explanations relating to material departures, if any.
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 true and fair view of the state of affairs of
the company at the end of the financial year and of the profit of the
company for that period.
that the directors have taken proper and sufficient care of 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.
that the directors have prepared the annual accounts on a going concern
basis.
DEPOSITS
The company has not accepted any deposit from the public attracting the
provisions of Sec 58A of the Companies Act 1956.
AUDITORS
The retiring Auditors, M/s Ashish Vyas & Co. Chartered Accountants,
Dewas, being eligible, offer themselves for reappointment. They have
furnished a certificate to the effect that their reappointment if made,
would be within the prescribed limits under Sec 224(1B) of the
Companies Act 1956.
AUDITORS' REPORT
Report of the auditors and their observations and notes to the accounts
of the company for the year under review are attached herewith which
are self-explanatory and do not require further explanation.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, ADAPTATION AND
INNOVATION & FOREIGN EXCHANGE EARNING AND OUTGO
This information required to be given under section 217 (1) (c) of the
Companies Act, 1956 read with the Companies (Disclosure of particulars
in the Report of the Director) Rules 1988 is annexed herewith.
PARTICULARS OF EMPLOYEES
The information required under Sec 217(2A) of the Companies Act 1956 is
not given as there was no employee in receipt of remuneration during
the year, exceeding the limits prescribed by the Companies (Particulars
of Employees) Rules, 1975 as revised.
LISTING
Your Company continues to be listed on the Stock Exchange, Mumbai where
the Company's shares are being traded. The Company has paid Listing
Fees for the year 2013-14.
CORPORATE GOVERNANCE
Your Company is committed in following the highest standards of
Corporate Governance. In this pursuit, your Company has a structure of
corporate governance in place that ensures compliance of the provisions
of Clause 49 of the Listing Agreement.
For fiscal 2013 the compliance report is provided in the Corporate
Governance Report section of this annual report.
MANAGEMENT DISCUSSION AND ANALYSIS
Pursuant to clause 49 of the Listing Agreement, Management discussion
and analysis Report which forms part of this report is annexed.
ACKNOWLEDGEMENT
The company has developed a very cordial, warm and close relationship
with the investors, various government and semi-government departments,
banks and financial institutions, customers, suppliers and other
service providers. The Board of Directors wish to gratefully
acknowledge the co-operation, assistance and guidance received from all
of them. The company could make the progress it has in these years due
to the dedication and creativity of its staff at all levels. The Board
of Directors wishes to place on record its warm appreciation for these
efforts.
By Order of the Board of Directors
For S.5.FORGINGS & ENGINEERING LIMITED
Sd/-
Place: Mumbai Suresh Sharma
Dated: 01/09/2013. Chairman | 