| The Directors are pleased to present their Report on the business and
operations of your Company together with the Audited Statement of
Accounts for the year ended 31st March, 2012:
FINANCIAL RESULTS:
Performance of the Company for the Financial Year 2011-12 is summarized
as below
(Rupees in Lacs)
Particulars 31.03.2012 31.03.2011
Gross Income 891.97 752.58
Expenditure Other than Depreciation 836.61 720.80
Profit Before Depreciation 55.36 31.78
Less Depreciation 15.81 15.28
Profit After Depreciation 39.55 16.50
Less: Income Tax 10.00 5.00
Prior Period Tax Adjustments 24.68 5.55
Prior Period Adjustments (Net) 6.88 0.51
Profit after Tax and Prior Period
Adjustment (2.01) 5.44
DIVIDEND:
In view of the carried forward losses, the Board of Directors'
expresses their inability to recommend any dividend for the year.
MANAGEMENT DISCUSSION & ANALYSIS:
Operations & Performance:
Production/Purchase for the year: 83,879 Sqm
Dispatches for the year : 74,124 Sqm
Sales Value for the year in Rs.: 8,60,95,438 Rs.
Your Company continues to carry on its business with the focus on
exports. As against the revenue of Rs. 7.53 Crores in the previous
year, the Company has achieved overly revenue of Rs. 8.92 Crores.
Operating profits increased from Rs. 31.78 Lakhs to Rs 55.36 Lakhs.
Global competition with supplies coming from China has been the primary
concern and is responsible for reduced growth. The market in the United
States seems to have shut its door for the granite products. Recession
in Europe continues to haunt the granite industry with the vagaries of
construction business. Having passed the most difficult situation in
the past, your Directors are infusing all out efforts to ensure
continued operations and look for better opportunities in the days to
come.
OUTLOOK:
The exposure of the Management to the business being carried out by the
Company and the experience earned by the Core Team coupled with the
requisite infrastructure for operations, network of market globally,
collectively constitute the unique core strength for your Company.
Relentless efforts continued by the Company on implementing austerity
measures and cost cutting uniformly. With uncertainties and global
recession, your Directors will focus on achieving better profitability
by garnering all the resources at their disposal. The Directors hope
that the situation will change to offer the Company better market
opportunities.
INTERNAL CONTROL SYSTEMS:
Your Company has in place adequate systems of Internal Controls which
are commensurate with the size of its operations and it is properly
designed to protect and safeguard the assets of the Company. There is a
proper system for recording the transactions, which ensures that each
transaction is properly authorized and executed according to the norms.
Reorganization of some of the key positions was implemented during the
year under report and your Directors are of the view that this will
help the Company to great extent.
INDUSTRIAL RELATIONS:
Your Company continued to extend the training programmes at various
levels in order to optimize the productivity. The Company continues to
have about 160 personnel including casuals.
PUBLIC DEPOSITS:
The Company has not accepted any fixed deposits.
DIRECTORS:
Mrs. Urmila Rani, Director of the Company retires by rotation and being
eligible, offers herself for re-appointment.
AUDIT COMMITTEE:
Audit Committee constituted by the Board of Directors with requisite
composition to fall in line with the prevailing laws continued to
discharge its functions during the year under report.
CORPORATE GOVERNANCE:
As per the provisions of the Listing Agreement with the Stock Exchange,
a Report on Corporate Governance has been given in the Annexure I
hereto.
AUDITORS:
Messrs R Singhvi & Associates, Chartered Accountants, Bangalore, the
retiring Auditors of the Company hold office until the conclusion of
the forthcoming Annual General Meeting and are eligible for
re-appointment.
AUDITORS' REPORT ; Attention is drawn to the Auditors' Report and the
following explanation is furnished:
1. Note No. 4 :
Regarding appointment of full time Company Secretary.
The explanation provided under Schedule 'O' II (18) regarding the
aforesaid item is self-explanatory.
PARTICULARS OF EMPLOYEES:
Statement pursuant to Section 217(2A) of the Companies Act, 1956, read
with the Companies (Particulars of Employees) Amendment Rules, 2011.'
There were no employees drawing remuneration in excess of Rs.5 lakhs
per month or Rs.60 lakhs per annum.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956, with respect to Directors Responsibility Statement, it is
hereby confirmed:
i) That in the preparation of the accounts for the financial year ended
31st March 2012, the applicable accounting standards have been followed
along with proper explanation relating to material departures;
ii) That the Directors have followed such accounting policies,
standards as prescribed by ICAI applied them consistently and made
judgments and estimates that were 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 of the Company for the year
under review;
iii) That the Directors have taken proper and sufficient care for the
maintenance of adequate 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;
iv) That the Directors have prepared the accounts for the financial
year ended 31st March, 2012 on a "going concern" basis.
OTHER STATUTORY DISCLOSURES:
In terms of Section 217(1)(e) of the Companies Act, 1956 following
particulars are furnished:
Energy Conservation/Technology Absorption :
Your Company continues to put in the best efforts to conserve and
efficiently utilize energy wherever possible.
Technology Absorption. Adaptation and Innovation :
The machinery being sophisticated with built-in technology, the quality
of the products manufactured is on par with the international
standards. From time to time, the core technical personnel are imparted
the latest technology.
Foreign Exchange Transactions :
Foreign Exchange Earnings Rs. 587.73 Lakhs
Foreign Exchange Outgo Rs. 70.47 Lakhs
ACKNOWLEDGEMENT:
The Board of Directors wish to thank all the Shareholders, Government
Authorities, Financial Institutions, Bankers, Suppliers, Customers and
all the Employees for their continued assistance, support, cooperation
and direction to the Company during the year under review.
By Order of the Board
For AANKIT GRANITES LIMITED
DR. ADARSH KUMAR
MANAGING DIRECTOR
URMILA RANI
DIRECTOR
Place : Bangalore
Date : 30-05-2012 |