| The Directors have pleasure in presenting their report on the
operations of the Company for the year ending 31st March 2007.
Financial Results Current Year Previous Year
(Rs. in Lacs) (Rs. in Lacs)
a) Sales and other income 497.52 982.30
b) Profit before Interest,
Depreciation
and non-cash exp. (166.36) (253.72)
c) Interest 70.47 101.32
d) Depreciation and other non cash
expenses 0.99 1.10
e) Provision for Taxation 0.11 0.56
f) Net Profit/(Loss) before
Appropriation 237.93) (356.70)
g) Add: Deferred Tax 80.25 88.28
(157.68) (268.42)
h) Add: Balance Brought Forward (602.67 (334.25)
Net Profit & (Loss) trf. to
Balance sheet (760.35) (602.67)
Dividend:
Due to losses during year the Board of Directors does not recommend any
dividend for the year ended 31st March 2007.
Turnover and Profits and Operations:
Turnover for the year under review amounted to Rs 497.52 Lac (previous
year Rs.947.25 Lac). The net loss for the same year was Rs.237.81 Lac
(previous year Rs. 356.14 Lac).
Finance and Accounts:
During the year, the Company could not progress much and had strains on
its working capital requirement because of slow recovery of its
receivables, slow movement of stocks and losses due to lower turnover
mainly because of the recession prevalent in the Industry in which the
Company operates. However your directors hopeful of doing a better
performance in the future.
Auditors:
The Auditors M/s. S. M. Bhat & Associates., Chartered Accountants, are
holding their office as the Auditors of the Company till the conclusion
of the ensuing Annual General Meeting. M/s. S. M. Bhat and Associates,
Chartered Accountants, have expressed their consent to continue as
Statutory Auditors of the Company and your Board recommends their
appointment.
Deposits
The company has not invited or accepted any deposits from the public
under the non- banking financial companies, Reserve bank of India
directions, 1977.
Particulars of Employees:
As required under Sub Section 2A of Section 217 of Companies Act, 1956
read with Companies (Particulars of Employees) Rules, 1975 and as
amended from time to time, the particulars of such employees are not
applicable to the Company.
Conversion of energy and technology absorption
The particulars under the companies (Disclosure of Particulars in the
report of Board of directors) Rules, 1988 on conservation of energy and
technology absorption are not applicable.
Foreign Exchange Earnings & Outgo
There is no outflow/inflow of foreign exchange
Corporate governance
The company has complied with the requirements regarding corporate
governance as the required under clause 49 of the listing agreement
entered in to the stock exchange where the companys shares are listed.
A report of the corporate governance in this regard is made a part of
this annual report and a certificate from the auditors of the companies
regarding the compliance of the conditions of the corporate governance
is attached to this report.
Directors Responsibility Statement:
As required under Section 217(2AA) of the Companies Act, 1956, the
Directors confirm that:
1. In the preparation of the annual accounts, the applicable
accounting standards have been followed.
2. The accounting policies selected have been consistently applied and
the accounting for the period under review gives a true and fair view
of the state of affairs of the Company.
3. Proper and sufficient; care has been taken for maintenance of
adequate accounting records in accordance with the provisions of the
Act, for safeguarding the assets of the Company.
4. The accounts have been prepared on a going-concern basis.
Audit Committee
The company has duly constituted audit committee under section 292A of
the companies act, 1956.
Acknowledgement:
The Directors wish to take this opportunity to thank all the employees
of the Company as also various other Government Agencies for their
continuous contribution towards the growth of the organization.
For Aakar Engineering and Manufacturing Company Limited
Chairman
Place: Mumbai
Date : 03-09-2007
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