director chairman - tai ind · name of director: mr. prem sagar brief resumé: mr. prem sagar...
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Board of Directors DashoWangchukDorji Chairman & Managing Director DashoTopgyalDorji Director Mr.PremSagar Director Mr.KNMalhotra Director Mr.VinayKilla Director
Audit Committee Mr.PremSagar Chairman Mr.KNMalhotra Mr.VinayKilla
President Mr.RohanGhosh
General Manager-Corporate & Company Secretary Ms.IndiraBiswas
Bankers StateBankofIndia HDFCBankLimited CanaraBank UnitedBankofIndia VijayaBank
Statutory Auditors Ray&Ray,CharteredAccountants,Kolkata
Registered Office 53A,MirzaGhalibStreet
3rdfloor,Kolkata700016
�
Contents
Notice 3
Directors’Report 5 ManagementDiscussionandAnalysisReport 9 ReportonCorporateGovernance 10
CEO’s declaration on the Affirmation of Code of Conduct 15
Auditor’s Certificate on Corporate Governance 16
Auditor’sReport 17
BalanceSheet �0
Profit & Loss Account 21
CashFlowStatement ��
Schedules �4
BalanceSheetAbstract 37
AddendumtotheAccounts 38
ProxyForm 39
Annual General Meeting on Monday, ��nd September �008 at Kalakunj,48,ShakespeareSarani,Kolkata-700017at10.00A.M.Asameasureofeconomy,copies of the Annual Report will not be distributed at the General Meeting.ShareholdersarerequestedtokindlybringtheircopiestotheMeeting.
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NoticeNOTICE is hereby given that the Twenty-fifth Annual General Meeting of Tai Industries Limited will be held at Kalakunj,48ShakespeareSarani,Kolkata–700017,onMonday,the22ndSeptember,2008at10.00a.m.totransactthefollowingbusiness:
Ordinary Business
1. Toreceive,considerandadopttheProfitandLossAccountfortheyearended31stMarch2008,theBalanceSheetasatthatdateandtheReportsoftheDirectorsandtheAuditorsthereon.
2.ToappointaDirectorinplaceofMr.PremSagarretiringbyrotationandeligibleforreappointment.
3. ToappointAuditorsandtofixtheirremuneration.Messrs.Ray&Ray,theretiringAuditorsareeligibleforreappointment.
Special Business
4. ToconsiderandifthoughtfittopassthefollowingresolutionasSpecialResolution.
“RESOLVEDthatpursuanttoSection149(2A)andotherapplicableprovisions,ifany,oftheCompaniesAct,1956consentbeandisherebyaccordedforthecommencementofbusinessofpurchaseandsale,includingimportandexportofmachineryasprovidedinsub-clause6and9oftheOtherObjectsClauseoftheMemorandumofAssociationoftheCompany.”
“RESOLVEDFURTHERthattheBoardofDirectorsoftheCompanybeandisherebyauthorizedtodoallsuchacts,deedsorthingswhichmayberequiredtogiveeffecttothisresolution.”
ByOrderoftheBoard
Indira Biswas
Thimpu,Bhutan GeneralManager-Corporate25thJune,2008 &CompanySecretary
Notes:
1. TherelativeexplanatorystatementpursuanttoSection173oftheCompaniesAct,1956,isannexedhereto.
2. AMEMBERENTITLEDTOATTENDANDVOTEATTHEMEETINGISENTITLEDTOAPPOINTAPROXYTOATTENDANDVOTEINSTEADOFHIMSELF.APROXYNEEDNOTBEAMEMBEROFTHECOMPANY.
A Proxy, in order to be effective, must be received at the Company’s Registered Office at 53A , Mirza Ghalib Street,Kolkata-700016notlessthanforty-eighthoursbeforetheMeeting.
3. TheCompanyisregisteredwithNationalSecuritiesDepositoryLtd.(‘NSDL’),andCentralDepositoryServices(India)Ltd.(‘CDSL’), for dematerialization of its Equity Shares which has been allotted the ISIN INE358D01018. Intime SpectrumRegistryLimitedhavingtheirofficeat59CChowringheeRoad,Kolkata700020aretheRegistrarandShareTransferAgentsoftheCompany.
4. TheRegisterofMembersoftheCompanywillremainclosedfrom15thSeptember,2008to22ndSeptember,2008,bothdaysinclusive.
5. Memberswhoareholdingsharesinphysicalformarerequestedto:
a. notifyanychangeintheiraddresses;
b. communicate on all matters pertaining to their shareholdings with the Company’s Registered Office, quoting theirrespectiveLedgerFolioNumbers,ClientIDandDPID;
c. notethatasperprovisionsoftheCompaniesAct,1956,facilityformakingnominationsisavailableforshareholdersinrespectofEquitySharesheldbythem;
d. bringtheircopiesoftheAnnualReporttotheMeeting;
e. bringtheirrespectiveLedgerFolioNumbers,ClientIDandDPIDforeasyidentificationofattendanceattheAnnualGeneralMeeting.
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6. i. PursuanttoSection205AoftheCompaniesAct,1956(‘theAct’)alldividendsdeclaredandrelativedividendwarrantsposted upto and including the Dividend for the year 1993-94 and remaining unclaimed by members have beentransferredtotheGeneralRevenueAccountoftheCentralGovernment.ShareholderswhohavenotencashedtheirdividendwarrantsinrespectofthesaidperiodarerequestedtoprefertheirclaimstotheRegistrarofCompanies,WestBengal.Incaseanyassistanceisrequired,shareholdersarerequestedtowritetotheCompany’sRegisteredOffice.
ii. Pursuant to Section 205A of the Companies Act, 1956 dividends declared from the year 1994-95 upto 1999-2000(InterimDividend)andremainingunclaimedbythemembersattheendofthestatutoryperiodofsevenyearshavebeentransferredtotheInvestorEducation&ProtectionFundconstitutedbytheCentralGovernmentunderSection205CoftheActonwhichnoclaimforUnpaidDividendcanbepreferred.TheStatutoryperiodofsevenyearspertainingtodividendfortheyear2000-2001expireson9thSeptember,2008,followingwhichtheunpaid/unclaimeddividendforthesaidyearshallbetransferredtotheInvestorEducationandProtectionFund.
iii. Thosememberswhohavenotsofarencashedtheirwarrantspertainingtothedividendpaidfortheyear2001–2002arerequestedtosendthesametotheCompany’sRegisteredOfficeforrevalidationimmediatelyinviewofthefactthatdividendremainingunpaid/unclaimedoveraperiodofsevenyearsarerequiredtobetransferredtotheaforesaidFundonwhichnoclaimforUnpaidDividendcanbepreferred.
7. Relevantdetails in respectof Itemno.2of theNotice,pursuant toClause49of theListingAgreementwith theStockExchanges,aregivenhereunder.
DETAILSOFDIRECTORRETIRINGBYROTATIONANDSEEKINGRE-APPOINTMENT
(InpursuanceofClause49oftheListingAgreement)
NameofDirector:Mr.PremSagar
BriefResumé:
Mr.PremSagarstartedhiscareerwithTISCOandhasassumedseveralresponsiblepositionsintheTataGroupofCompanies.Hehasanexperienceofoverfourdecadesintheindustryandisawidelytravelledtechnocrat.Mr.Sagarisconnectedwithseveraltrade,socialandsportsassociationsinIndia.
Directorships&CommitteeMembershipsofOtherCompanies:
Mr.PremSagarisalsoaDirectorofFrontierSpringsLimited
Mr.PremSagardoesnotholdanyshareintheCompany.
ByOrderoftheBoard
Indira Biswas
Thimpu,Bhutan GeneralManager-Corporate25thJune,2008 &CompanySecretary
Explanatory Statement pursuant to section 173 (2) of the Companies Act, 1956.
Item No. 4
Asadiversificationprogramme,yourCompanyproposestoenterintothebusinessofpurchaseandsale,includingexportandimportofmachinerywhichhasvastpotentialsofgrowth.
TheCompanyispermittedtoenterintothisactivityvideclauses6and9intheOtherObjectsClauseoftheMemorandumofAssociationoftheCompany.
As per section 149 (2A) of the Companies Act, 1956, approval of members by way of special resolution is necessary forcommencementofnewbusinessprovidedinthe‘OtherObjects’clausesoftheMemorandumofAssociation.Accordinglythisresolutionisplacedbeforetheshareholdersfortheirapproval.
NoDirectorisinterestedorconcernedinthisresolution.
ByOrderoftheBoard
Indira Biswas
Thimpu,Bhutan GeneralManager-Corporate25thJune,2008 &CompanySecretary
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Directors’ Report
TO THE MEMBERS
YourDirectorshavepleasureinpresentingtheir25thAnnualReportonthebusinessandoperationsofyourCompanyfortheyearended31stMarch,2008.
FINANCIAL PERFORMANCE
(RupeesinLakhs)
Particulars Year ended Year ended
31st March 2008 31st March 2007
Turnover 4463.53 4414.93
ProfitbeforeInterest,Depreciation&Taxation(PBIDT) 113.77 600.54
Interest 5.07 56.54
ProfitbeforeDepreciation&Taxation(PBDT) 108.70 544.00
Depreciation 62.88 79.63
Profit Before Tax and Extraordinary Items (PBTE) 45.82 464.37
ExtraordinaryItems 151.98 -
Profit/(Loss) Before Tax (PBT) (106.16) 464.37
ProvisionforTaxation 13.41 52.07
Profit/(Loss) After Tax (PAT) (119.57) 412.30
Balancebroughtforwardfrompreviousyear 961.27 548.97
Profit available for appropriation 841.71 961.27
ProposedDividend - -
ProfitcarriedtoBalanceSheet 841.71 961.27
AUDITOR’S REPORT
Messrs.RayandRay,StatutoryAuditors,havesubmittedtheirReportunderSection227oftheCompaniesAct,1956andthecommentsmadebytheAuditorsintheirReporthavebeenadequatelydealtwithintherelativeNotesonAccountswhichareselfexplanatory.
Referringto ItemNo.4of theAuditor’sReport,yourDirectorsclarifythatduringtheyearstocksworthRs.1,43,78,087weredamagedbyinundationinthemonthofSeptember.TheamountofdamagehasbeendulysurveyedbytheInsuranceCompanyandaclaimfortheaforesaidamounthasbeenlodged.Thesettlementoftheclaimisawaited.
ACCOUNTING POLICIES AND PROCEDURES
ThemajoraccountingpoliciesinconformitywiththeAccountingStandardsandGuidelinesissuedbyTheInstituteofCharteredAccountantsofIndiafromtimetotimewhichhavebeenspecifiedintheCompaniesAct,1956havebeenfollowedasusualinthecourseofpreparingandpresentingtheseAccounts.SuchaccountingpolicieshavebeensuitablyincorporatedintheNotesonAccounts.
YourCompanycontinuestohaveanadequateinternalauditsystemcarriedoutbyexternalfirmsofCharteredAccountantswhosubmittheirReportsuponcompletionofauditforconsiderationbytheDirectors.
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RESUMÉ OF PERFORMANCE
YourCompany’sfinancialperformancereflects1.10%riseintotalsalesoftheCompanyfromthepreviousyear.ThedetailsofSales/Incomefromoperationsareasfollows:
PRODUCTS Sales in Sales in Increase/ Percentage 2007-2008 2006-2007 (Decrease) increase/
in Sales (decrease) (Rs. in lakhs) (Rs. in lakhs) (Rs. in lakhs) %
FruitProducts 2073.27 1768.36 304.91 17.24
CalciumCarbide 282.85 301.70 (18.85) (6.25)
Charcoal 445.04 431.49 13.55 3.14
Retail 1520.83 1775.86 (255.03) (14.36)
CommissiononSale 141.54 137.52 4.02 2.92
TotalTurnover 4463.53 4414.93 48.60 1.10
TheLossofRs.119.57lakhsisattributabletostocksdamagedduringtheyearduetoinundationowingtoheavyrainfall.
PLANS AND PROSPECTS
Fruit Product Division
The‘DRUK’brandinIndiacontinuestoenjoycustomerconfidenceforovertwodecadesintermsofthequalityofitsproductsandyourCompanycontinuesinitsendeavourforconsolidationandexpansionofthisdivision.
Presentlythefocushasbeenonsquashesand,duringtheyear,yourCompanyhastestlaunchedtheLitchiSquashandhasreceivedaveryfavourableresponse.YourCompanyisthusalsocontemplatingintroducingnewvariantsinthiscategory.
YourCompanyisalsocontemplatingenteringintoagreementswithreputedFMCGcompaniesfordistributorshipoftheirfoodproducts throughout India.Thiswouldnotonlybebeneficial fromtheoperationspointofviewbutwouldalsoaugment theCompany’srevenue.
YourCompanyalsocontinuesinitsfocusonbrandingandmodernizationofpackagingandexpansionofexistingproductmix.
Industrial Division
1.Charcoal
a) TherehasbeenencouragingperformanceontheCharcoalprocurementfrontduringtheyear.
b) YourDirectorsarecontemplatingshiftingofbasefromTrichytoManamaduraiandtheLogisticsandcostsinvolvedinthemovearebeingconsidered.
c) ThereisaverygooddemandforCharcoalfromBhutanandotherparties.Wearelookingatanincreasedprocurementandhaverevisedourtargetsupwardtomeetthedemandinthecomingfinancialyear.
2.ManganeseOre
a) Wehavebeenabletolocategoodresourcesofsupplyandhavegoodbusinessprospectsinthecomingfinancialyear.
3.LowAshMetallurgicalCoke
WearelookingattieupswithCokingCoalcompaniesasthereareregularrequirementsforthesame.Wearealsolookingatopeningofnewopportunities.
4.Silico-Manganese
WearelookingatmarketingoftheaboveproductinIndia.
5.CalciumCarbide
a) OurperformanceontheCalciumCarbidefronthasbeensatisfactory.
b) WehaverevisedoursalestargetfortheQuarterApril–June2008,aswearelookingatverygooddemandsbecauseoftheriseinproductioncapacitiesofendusers.
c) Thetradersarealsosignalingagoodseasonahead.
d) WeareworkingaggressivelyonthedealernetworkacrossEasternIndiaandareabletoseethedemandsgrowing.
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Retail Division
TheRetailsectorhasbeenwitnessingatremendousgrowthwithanexplosionofallformatsofretailstoresbybiggroupsonanationallevel.ThecompetitionforcustomerpatronageisalsoverykeenandtheoverallbaseofcustomersvisitingModernTraderetailoutletshasincreasedexponentially.Equally,yourCompanyhasbeenpursuingastrategyofaggressivegrowthinthissegment.
Thefirststoreunderthebrandname“C3theMarketplace”wasopenedinLeeRoad,waybackinJanuary,2004.ThereafteryourCompanyhassincebeenontheexpansionmode.
DuringtheyearyourCompanyhasenteredintoanarrangementwithoilmammothHPCLforatieupwiththeirsuitableretailoutletsforopeningofExpressstores.Accordingly,thefirststorewasopenedatNarendrapurinFebruary‘08.FurtheroutletsarebeingreadiedintermsofinfrastructurebyHPCLforC3tocommission.
Inaccordancewiththefocusonbuildingandmonitoringacustomer-centriccultureyourCompanyisimplementing:
1.AnongoingandcontinousprogrammeofdeliveringincreasedcustomersatisfactionbywayofarangeofofferswhichwillmakeC3thepreferredshoppingdestination.
2.UpgradationofStoresinfrastructureandrenovation,ofwhichtheexerciseinLeeRoadhasbeencompletedandCityCentreisimpending.
3.Upgradationofproductmixforcompetitiveadvantageandhighermargins.
4. Manpower rationalization and optimal efficiency in logistics and stocking to ensure faster rotation with lower inventorylevels.
5.Afocusedpromotionalprogrammetargetedatnichecustomerssuchasseniorcitizensandothersuchclientele.
TheproposaltospinofftheretailbusinesscontinuestobeundertheBoard’sconsideration.
DIVIDEND
Your Directors express their inability to recommend dividend for the year to plough back profits to conserve funds forexpansion.
APPROVAL UNDER SECTION 211(4) OF THE COMPANIES ACT, 1956
DuringtheyeartheCompanyhasmadeanapplicationtotheCentralGovernment,MinistryofCorporateAffairsforobtaininganexemptionfromdisclosingthequantitativeinformationasrequiredtobestatedintermsofparagraph3(ii) (b)ofPartIIofScheduleVItotheCompaniesAct,1956forthefinancialyearended31stMarch,2008.TheapprovaloftheCentralGovernmentisawaited.
CORPORATE GOVERNANCE
IncompliancewiththedisclosuresrequiredunderthesaidClause49oftheListingAgreement,aManagementDiscussionandAnalysisReportisprovidedinAnnexure‘A’.
TheReportonCorporateGovernanceasrequiredundertheaforesaidClauseisalsoprovidedinAnnexure‘B’tothisReport,together with the Declaration affirming compliance with the Code of Conduct of the Company and Auditor’s Certificate onCompliancewiththeconditionsofCorporateGovernance.
DIRECTORS’ RESPONSIBILITY STATEMENT
PursuanttotheprovisionsSection217(2AA)oftheCompaniesAct,1956theDirectorsherebyconfirmthat:
(i) TheAccountingStandardsasapplicabletoyourCompanyandcorroboratedbytheCompaniesAct,1956havebeenfollowedincourseofpreparationof theAnnualAccounts for the yearended31stMarch,2008and therehasbeenno materialdeparturestowarrantfurtherexplanation.
(ii) TheaccountingpoliciesashavebeenfollowedarebeingcontinuedincourseofpreparationoftheAnnualAccountsfortheyearended31stMarch,2008,soastoexhibitatrueandfairviewofthestateofaffairsoftheCompanyandofthelossforthatperiod.
(iii) AdequatecontrolsandinternalauditsystemsarebeingfollowedbytheCompanyincourseofrunningitsaffairsasalsoformaintenanceandsafeguardingofitsassets.EverycautionhasbeentakentorelatesuchcontrolmeasurestothebenefitoftheCompanyandtopreventanyfraudorirregularitiestocreepin.
(iv)TheAnnualAccountsoftheCompanyfortheyearended31stMarch,2008havebeenpreparedonagoingconcernbasisashitherto.
DEMATERIALISATION OF SECURITIES
ThesharesoftheCompanyarecompulsorilytradedindematerialisedformforallshareholders.Ason31stMarch,2008,58.62%oftotalnumberofsharesstanddematerialised.
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DIRECTORS
InaccordancewithArticle56oftheArticlesofAssociationoftheCompany,Mr.PremSagarretiresbyrotationattheforthcomingAnnualGeneralMeetingandbeingeligible,offershimselfforreappointment.
PARTICULARS OF EMPLOYEES
TherewerenoemployeesduringtheyearunderreviewinrespectofwhomdetailsasrequiredunderSection217(2A)oftheCompaniesAct,1956,readwiththeCompanies(ParticularsofEmployees)Rules,1975,arerequiredtobedisclosed.
COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988
A. Conservation of Energy
(a)Energyconservationmeasurestaken:
YourCompany’sactivitiesbeingtradinginnature,energyconsumedisonlyinthenatureofelectricalconsumptionfor useandmaintenanceofofficeappliances.However,theeffortsofyourCompanyareaimedatkeepingtheconsumption levelstoaslowaspracticable.
(b)Additionalinvestmentsandproposals,ifany,beingimplementedforreductionofconsumptionofenergy:
Asalreadymentionedabove,theelectricalconsumptionrequiredfortheuseandmaintenanceofofficeappliancesis keptaslowasispracticable.
(c) Impactofthemeasuresat(a)and(b)aboveforreductionofconsumptionandconsequentimpactonthecostofproduction ofgoods:
YourCompanyisnotengagedinanymanufacturingactivityandhencedisclosureunderthisheadisnotrequired.
(d) TotalenergyconsumptionandenergyconsumptionperunitofproductionasperFormAoftheAnnexureinrespectof industriesspecifiedintheSchedulethereto:
YourCompanyisnotengagedinanymanufacturingactivityandhencedisclosureunderthisheadisnotrequired
B. Technology Absorption
(e) EffortsmadeintechnologyabsorptionasperFormBoftheAnnexure:
YourCompanyisnotengagedinanymanufacturingactivityandhencedisclosureunderthisheadisnotrequired.
C. Foreign exchange earnings and outgo
(f) Activitiesrelatingtoexports;initiativestakentoincreaseexports;developmentofnewexportmarketsforproductsand services;exportplans;
YourCompanyisnotengagedinanyexportactivityandhencedisclosureunderthisheadisnotrequired.
(g) Totalforeignexchangeusedandearned
Therehasbeennoforeignexchangeearningsoroutgoduringtheyear.
AUDITORS
Messrs.Ray&Ray.,CharteredAccountants,AuditorsoftheCompany,retireattheconclusionoftheforthcomingAnnualGeneralMeetingand,beingeligible,offerthemselvesforre-appointment.
ACKNOWLEDGEMENTS
YourDirectorswish toplaceon record their grateful appreciation for theexcellent support andco-operation received fromthe Shareholders, Banks, Financial Institutions and Investors, Government Authorities, Stock Exchanges, Reserve Bank ofIndia,CentralandStateGovernments.YourDirectorsalsowishtoplaceonrecordtheirdeepappreciationofthededicationandcontributionsmadebyemployeesatalllevelswhothroughtheircompetence,hardworkandsupporthaveenabledyourCompanytoachievebetterperformanceandlookforwardtotheircontinuedsupportinthefutureaswell.
ForandonbehalfoftheBoard
Place:Thimpu,Bhutan Vinay Killa Wangchuk Dorji Date:25thJune,2008 Director Managing Director
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Annexure ‘A’ to the Directors’ Report
Management Discussion and Analysis ReportClause49oftheListingAgreementstipulatesdisclosureunderspecificheadswhicharegiveninthefollowingparagraphsandwhichcontinuetobefollowedintheusualcourseoftheCompany’sbusinessovertheyearsindiscussionsamongsttheDirectorsandotherSeniorManagementPersonnel.
(a) Industry Structure and Developments Indiancitiesarewitnessingaparadigmshiftfromtraditionalformsofretailingintoamodernorganisedsector.Ofthe12millionretail
outletsinthecountry,nearly5millionsellfoodandrelatedproducts.Organisedretailaccountsforonly4percentofthetotalmarket,andislikelytoincreaseitsshareto22percent,openinghugegrowthpotentialinthissegment.
Theprocessedfruitsindustryisadominantsegmentofthefoodindustry.Fruititemsareprimarilyprocessedinordertoextendtheirshelf lifeandtopreservetheirnutritionalvalue.Thesecondarypurposeistodeliverconvenience,tasteandappealtothetargetconsumers.Thisindustryissettoregisterasignificantgrowthrateagainstthebackdropofincreasedconsumerdemandsandastepupininvestments.
Intheindustrialsector,CalciumCarbideisgenerallyusedasadesulphuriserintheironandsteelindustry.YourCompany’smainfocusinthepastyearhasbeeninthemanufactureofacetylenegas.DuetoitslongchainofimportanceCalciumCarbideisoneofthemostrequiredandmanufacturedchemicals.
Charcoal is a product with many uses in the industry at different scales of activity, specially in furnaces for forging and metalworking.
(b) Opportunities and threats TheIndianretailmarketwhichisthefifthlargestretaildestinationglobally,accordingtoindustryestimatesisestimatedtogrowfrom
USD330billionin2007toUSD427billionby2010andUSD637billionby2015.Whiletherearesignificantopportunitiesforgrowthinthissector,yourCompanyoperatesinahighlycompetitiveenvironmentwiththeentryofseveralbigplayers.
WhileIndiahasanabundantsupplyoffruitsandvegetables,theprocessedfoodindustryisstillinitsnascentstages.InacountrylikeIndiawherelocaltastepreferencesdifferfromregiontoregion,itposesamuchbiggerproblemtomarketfoodproductswhichcanhaveamuchlargeracceptanceandhenceabiggermarketpotential.ApartfromcertainexoticitemssuchaspreservedbambooshootsandKiwifruitjuices,yourCompanyisintomarketingofgenericcategoryoffruitpreserveshavinguniversalacceptancefortheIndianmarket.
TheIndianfoodsindustryisgrowingat9%andhassetthegrowthagendaformoderntradeformats.Thepreservedfoodssectoriswitnessingasignificantfavourablechangedrivenbychanginglifestyle,strongincomegrowthandfavourabledemographicpatterns.Thisisalsooneofthekeygrowthdriversoftheorganisedretailsector.
OurcountryremainsanetimporterofCalciumCarbide,withthedemandgrowingat3-3.5percent,therequirementforthesamebeinginlargequantities.
(c) Segment-wise or Product-wise Performance AsmentionedintheNotesonAccounts,yourCompanyispredominantlyengagedinretail,tradingoffruitproducts,calciumcarbide
andcharcoal. “C3TheMarketplace”,with itsclearcompetitiveadvantageover itscompetitors incertainsegmentssuchas liquor, frozennon
vegetarian,andimporteditemsanditsUSPofpersonalizedservicehascreatedadedicatedcustomerclientele. ‘Druk’isawellrecognisedbrandintheprocessedfruitindustry,havingamajorpresenceinthemarket.Asaleadingdistributorof
jams,crushes,squashes,preservesunderthesaidbrandname,yourCompanyenjoysfullcustomerconfidenceastothequalityofitsproducts.
TheperformanceintheindustrialproductsegmenthasbeenveryencouragingandyourDirectorsarecontemplatingexpansionofthisdivision.
(d) Outlook YourDirectorscontinueintheiremphasisonthe‘Quality’ofproducts.Theoutlookfortheforthcomingyearlooksencouraginginthe
retail,fruitproductandindustrialsector.
(e) Risks & Concerns Despitetheprospectsbeinggood,theseverecompetitioncontinuetogovernresults. AvitalareaofconcernisthedependenceonITsectorforsolutionsthathelpautomateandintegratethetransactionalsystem.
(f) Internal Control Systems & their Adequacy Thestatutory requirementsofAuditCommitteearebeingmet. Inmeetingsof theAuditCommittee, theStatutoryAuditorsand
PartnersofInternalAuditFirmsparticipate.SuchInternalAuditorsalsoperiodicallyvisitvariousdivisionsoftheCompany. Activities of each sector are being programmed on a quarterly basis, which get translated into an Annual Activity Plan. Each
departmentalhead is involved in thepreparationof theactivityplansand identifyingandcategorising theareasof risks,whichare closely monitored. Such documentations thereafter undergo a further layer of scrutiny and implementation under directsuperintendenceofthePresidentoftheCompany.
(g) Financial & Operational Performances ThishasbeenadequatelystatedintheDirectors’Report.
(h) Material Developments in Human Resources / Industrial Relations Front TheCompanyhastakeninhandtostepupactivitiesrelatedtohumanresourcedevelopmentpursuanttowhicheffortsareunder
wayforimprovedtrainingandeducationoftheCompany’semployeesatalllevels.
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Annexure ‘B’ to the Directors’ Report
Report On Corporate Governance
1. COMPANY’S PHILOSOPHY ON CODE OF GOVERNANCE
CorporateGovernanceisthemeanstomaximisethelongtermshareholdervalueinalegalandethicalmannerensuringfairness,courtesyanddignityinalltransactionsoftheCompany.YourCompanyiscommittedtotheconceptandphilosophyofCorporateGovernanceasameansofeffectiveinternalcontrol,highestlevelofaccountability,transparencyandprofessionalisminallareasofitsoperationsforenhancingcustomersatisfactionandshareholdervalue.
2. BOARD OF DIRECTORS
TheBoardofDirectorsatpresentcomprisesaChairman&ManagingDirector(beingExecutiveDirector)andfourNon-executiveDirectors.TheparticularsoftheDirectorsfortheyearendedon31stMarch,2008aregivenhereunder:
Attendance
Directorships in
Committee Positions Name Category
other companies
in other companies
At Board At last As As Meetings AGM Chairman Member
DashoWangchukDorji Chairmanand 5 Yes 12 _ _
ManagingDirector
DashoTopgyalDorji Non-Executive 3 Yes 10 _ _
Director
Mr.PremSagar Non-Executive 5 Yes 1 _ _
Independent
Director
Mr.KanwalNainMalhotra Non-Executive 5 Yes _ _ _
Independent
Director
Mr.VinayKilla Non-Executive 5 Yes 1 _ _
Independent
Director
Note:
CommitteePositionsinothercompaniesrelatetoChairmanship/MembershipofAuditandInvestors’/Shareholders’GrievanceCommitteesonly.
Duringtheyearunderreview,fiveBoardmeetingswereheldon24thApril2007,30thJuly2007,17thAugust2007,29thOctober2007and31stJanuary2008.
3. AUDIT COMMITTEE
TheAuditCommitteeconsistsofthreeNon-executiveIndependentDirectorswhoarepersonsofhighstandingintheindustrypossessingtherequisiteexperienceandexpertise.
ThetermsofreferenceoftheAuditCommitteeinclude:-
a) reviewinternalcontrolsystems;natureandscopeofauditaswellaspostauditdiscussions;
b) review quarterly, half-yearly and annual financial statements with particular reference to matters to be included in theDirectors’ResponsibilityStatementtobeincludedintheBoard’sReport;
c) ensurecompliancewithinternalcontrolsystems;
d) recommendtotheBoardonanymatterrelatingtofinancialmanagement,includingauditreport;
e) overseeCompany’sfinancialreportingprocessanddisclosureoffinancialinformation;
f) reviewperformanceofstatutoryandinternalauditors;
g) anyothermatterwhichmaybereferredtotheCommitteebytheBoard.
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During2007-2008theAuditCommitteemeton24thApril2007,30thJuly2007,17thAugust2007,29thOctober2007and31stJanuary2008.
CompositionoftheAuditCommitteeduringtheyear2007-2008:
Name Position held No. of Meetings
Held Attended
Mr.PremSagar Chairman 5 5
Mr.K.N.Malhotra Member 5 5
Mr.VinayKilla Member 5 5
Invitees:TheSeniorManagerFinance, theManagerAccountsandrepresentativesof theStatutoryandInternalAuditorsareinvitedandgenerallyremainpresentatthemeetingsoftheAuditCommittee.
TheCompanySecretaryactsastheSecretarytotheCommittee.
4. REMUNERATION COMMITTEE
No Remuneration Committee has been formed pursuant to Clause 49 of the Listing Agreement. However, a RemunerationCommitteeisinplaceinaccordancewithScheduleXIIItotheCompaniesAct,1956toconsiderandapprovetheManagerialRemuneration (subject toapprovalof theshareholders)consistingof thesalaryandperquisites tobepaid to theManagingDirectorwithoutcommissioninthesituationofinadequateprofits.TheRemunerationCommitteecomprises-
Mr.PremSagar Chairman
Mr.K.N.Malhotra Member
Mr.VinayKilla Member
NomeetingoftheCommitteewasheldduringtheyear.
DetailsofremunerationpaidtotheManagingDirectorduringtheyearunderreviewaregivenbelow:
(Rupees)
Salary 13,20,000
Commission –
Otherbenefits –
RetiralBenefits 1,58,400
Total 14,78,400
TheServiceAgreementbetweentheCompanyandDashoWangchukDorjiasChairmanandManagingDirectorisforaperiodof5yearseffective20thMay,2005,approvedby theCentralGovernment,vide itsOrderNo.1/232/2005-CL.VIIdated2ndSeptember, 2005. The reappointment was also approved by the shareholders at the Annual General Meeting held on 28thSeptember,2005.AspertheprovisionsofScheduleXIIIoftheCompaniesAct,1956,theretrialbenefitspaidtoDashoWangchukDorjihasnotbeenincludedinthecomputationoftheceilingonremunerationspecifiedinthesaidSchedule.NosittingfeeshavebeenpaidtoDashoWangchukDorji.
OnlysittingfeesforattendingthemeetingsoftheBoardandCommitteesthereofarepaidtotheNon-ExecutiveDirectors.
ParticularsofsittingfeespaidtotheNon-ExecutiveDirectorsduringtheyearunderreviewaregivenbelow:
Name Board Committee Total No. of Shares held
Meetings Meetings in the Company ( Rs. ) ( Rs. ) ( Rs. )
DashoTopgyalDorji 24,000 - 24,000 -
Mr.PremSagar 40,000 40,000 80,000 -
Mr.KanwalNainMalhotra 40,000 40,000 80,000 -
Mr.VinayKilla 40,000 40,000 80,000 200
TheCompanyhasnotissuedanyconvertibleinstruments.
1�
5. SHARE TRANSFER COMMITTEE:
TheShareTransferCommitteecomprisesMr.VinayKilla,astheChairmanandMr.RohanGhoshasMember.TheCompanySecretaryactsastheSecretarytotheCommittee.
ShareTransfer formalitiesarecompliedwithoncea fortnight, thepower toapprove the samebeingdelegatedseverally toMr.RohanGhoshandtheCompanySecretary.
TheCompany’sRegistrarandShareTransferAgent,IntimeSpectrumRegistryLimitedcarryouttheentiresharetransferactivitiesbothunderphysicalanddematsegment.
6. SHAREHOLDERS’ GRIEVANCE COMMITTEE
The Shareholder’s Grievance Committee was reconstituted on 29th October, 2007 and comprises Mr. Prem Sagar, as theChairmanandMr.KanwalNainMalhotraandMr.VinayKillaasMembers.
TheCompanySecretary,istheComplianceOfficer.
E-mailIDpursuanttoClause47(f)oftheListingAgreementwiththeStockExchanges:ibiswas@taiind.com.
StatusofInvestors’Complaintsason31stMarch,2008:
Noofcomplaintsreceivedduringtheyearandentirelydealtwith 2
Noofcomplaintspending Nil
7. GENERAL BODY MEETINGS
LocationandtimewherelastthreeAnnualGeneralMeetingswereheld:-
Date Location Time
28thSeptember,2005 Kalakunj,48,ShakespeareSarani,Kolkata–700017. 10.00AM
21stSeptember,2006 Sameasabove 10.00AM
21stSeptember,2007 Sameasabove 10.00AM
ASpecialResolutionforalterationoftheObjectsClauseoftheMemorandumofAssociationwaspassedattheAnnualGeneralMeeting held on 21st September, 2006. No Special Resolution was passed at the Annual General Meetings held on 28thSeptember,2005and21stSeptember,2007.
ResuméandotherinformationontheDirectorre-appointedasrequiredunderClause49IV(G)(i)oftheListingAgreementisgivenintheNoticeoftheAnnualGeneralMeetingannexedtotheAnnualReportfortheyearunderreview.
8. DISCLOSURES
a) Materiallysignificantrelatedpartytransactions:TheCompanyhasnotenteredintoanytransactionsofmaterialnaturewithitsPromoters,Directors,themanagement,subsidiarycompaniesorrelatives,etc.thatmayhavepotentialconflictwithitsinterestduringtheyearunderreview.However,thelistofrelatedpartyrelationshipsortransactionsasrequiredtobedisclosedinaccordancewithAccountingStandard18issuedbytheInstituteofCharteredAccountantsofIndiahasbeengiveninNotesonAccountsfortheyearended31stMarch,2008.
b) Nopenalties/strictureswereimposedontheCompanybyanyregulatoryauthorityfornon-complianceofanylawsoranymatterrelatingtocapitalmarketsduringthelastthreeyears.
c) TheCompanyhascompliedwithallthemandatoryrequirementsofSub-clausesItoVIIofthisClause.TheCompanycontinues in itseffortson improvement,consolidationanddocumentationofmethodsof internalcontrol forfinancialreportinganditseffectiveness.
9. MEANS OF COMMUNICATION
a) IncompliancewithClause41oftheListingAgreementtheCompanyregularlyintimatesunauditedhalfyearlyandquarterlyresultsaswellastheauditedannualresultstotheStockExchangesaftertheyaretakenonrecordandapprovedbytheBoardofDirectors.Inaddition,thesamearealsofiledontheElectronicDataInformationFilingandRetrieval(EDIFAR)websitemaintainedbytheSEBIinassociationwiththeNationalInformaticsCentre(NIC)pursuanttotherequirementsofClause51oftheListingAgreement.
b) Suchresultsarealsopublishedinnewspapersnamely,FinancialExpressandArthikLipi.
c) TheCompanyhasnoweb-site.
d) Nopresentationshavebeenmadetoinstitutionalinvestorsortotheanalysts.
e) ThedocumentonManagementDiscussionandAnalysisReportformsapartofthisAnnualReport.
13
10. GENERAL SHAREHOLDER INFORMATION
a) AGMdate,timeandvenue:
Monday,the22nddayofSeptember,2008atKalakunj,48,ShakespeareSarani,Kolkata–700017at10.00a.m.
b) FinancialYear:1stAprilto31stMarch.
c)BookclosurePeriod:15thSeptember,2008to22ndSeptember,2008,bothdaysinclusive.
d)Dividendpaymentdate:Nodividendhasbeenrecommendedfortheyearended31stMarch,2008.
e) ListingonStockExchangesandStockCodes:ThesharesoftheCompanyarelistedwiththeStockCodesattheStockExchangesgivenhereinbelow:
Stock Exchange Stock Code
(i) TheCalcuttaStockExchangeAssociationLimited 7,LyonsRange,Calcutta700001 30055
(ii) BombayStockExchangeLimited,PhirozeJeejeebhoyTowers,
DalalStreet,Fort,Mumbai400023. 519483
ListingFeesasprescribedhavebeenpaidtoalltheaforesaidStockExchangesupto31stMarch,2009.
DematCodeNo.allottedbyNSDL&CDSL: INE358D01018
f) StockPriceDataandSharePricePerformanceincomparisontoBSESENSEX:
Year 2007-2008 (Rupees)
Month Bombay Stock Exchange Limited Sensex
High Low High Low
April,2007 34.00 21.00 14383.72 12425.52
May,2007 27.90 22.70 14576.37 13554.34
June,2007 25.30 21.70 14683.36 13946.99
July,2007 32.50 24.00 15868.85 14638.88
August,2007 28.00 21.15 15542.40 13779.88
September,2007 28.00 21.40 17361.47 15323.05
October,2007 24.90 19.60 20238.16 17144.58
November,2007 24.90 18.55 20204.21 18182.83
December,2007 33.00 22.15 20498.11 18886.40
January,2008 42.90 20.50 21206.77 15332.42
February,2008 23.10 16.75 18895.34 16457.74
March,2008 19.10 11.30 17227.56 14677.24
g) ShareTransferSystem:
Sharetransfersareregisteredwithinamaximumperiodof30daysfromthedateofreceipt,provided,thedocumentsarecompleteinallrespects.
h) RegistrarandShareTransferAgent:
IntimeSpectrumRegistryLimitedat59CChowringheeRoad,Kolkata-700020actsastheRegistrarsforPhysicalaswellasDematsegment.
i) Dematerialisationofshares&liquidity:
ThesharesoftheCompanyarecompulsorilytradedindematerialisedformforallshareholders.Ason31stMarch,2008,58.62%oftotalnumberofsharesstanddematerialised.
j) OutstandingGDR/ADR/Warrantsoranyconvertibleinstruments:NotApplicable.
14
k)(A)DistributionofShareholdingason31stMarch,2008:
Break-up of Equity No. of Percentage of No. of Equity Percentage of shares held Shareholders Shares held shares held Equity shares
1-500 8733 94.31 1026726 17.11
501-1000 251 2.71 209313 3.49
1001-2000 117 1.26 179279 2.99
2001-3000 62 0.67 155184 2.59
3001-4000 16 0.17 56740 0.95
4001-5000 26 0.28 123536 2.06
5001-10000 22 0.24 162259 2.70
10000andabove 33 0.36 4086963 68.12
Total 9260 100.00 6000000 100.00
(B) ShareholdingPatternason31stMarch,2008:
Category No.of Percentage of
Shares held Shareholding
A PromotersHolding
1.Promoters
-IndianPromoters
-ForeignPromoters 1216000 20.267
2.Personsactinginconcert _ _
Total(A) 1216000 20.267
B PublicShareholding
1.InstitutionalInvestors
a)MutualFundsandUTI _ _
b)Banks,FinancialInstitutions,
InsuranceCompanies(Central/
StateGovt.Institutions/
Non-GovernmentInstitutions) 300 0.005
c)FIIs 1200000 20.00
Sub-Total 1200300 20.005
2.Others
a)PrivateCorporateBodies 790964 13.183
b)Individuals 2188735 36.478
c)NRIs/OCBs 604001 10.067
Sub-Total 3583700 59.729
Total(B) 4784000 79.733
Grand Total (A+B) 6000000 100.00
15
m) AddressforCorrespondence:
Registrarand ShareTransferAgent IntimeSpectrumRegistryLimited, 59CChowringheeRoad,Kolkata–700020. Phone:22890539/22890540 Fax:22890539 CorporateOffice: Ms.IndiraBiswas, GeneralManager-Corporate&CompanySecretary TaiIndustriesLimited, 53A,MirzaGhalibStreet, Kolkata–700016.
SignaturestoAnnexuresA&B
ForandonbehalfoftheBoard
Place:Thimpu,Bhutan Vinay Killa Wangchuk Dorji Date:25thJune,2008 Director Managing Director
DECLARATION BY THE CEO ON AFFIRMATION OF COMPLIANCE WITH
THE CODE OF CONDUCT OF THE COMPANY
TotheMembersof
TaiIndustriesLimited
Pursuant toClause49(I)(D)(ii) of theListingAgreementwith theStockExchanges, I herebydeclare that allDirectorsof theCompanyandMembersofSeniorManagementhaveaffirmedcompliancewiththeCodeofConductoftheCompany,fortheyearended31stMarch,2008.
Wangchuk Dorji
Date:25thJune,2008 Chief Executive Officer
16
Auditor’s Certificate on Corporate Governance
To
TheMembersof
TaiIndustriesLimited
WehaveexaminedthecomplianceofconditionsofCorporateGovernancebyTaiIndustriesLimitedfortheyearendedas31stMarch,2008,asstipulatedinclause49oftheListingAgreementofthesaidcompanywithstockexchanges.
ThecomplianceofconditionsofCorporateGovernanceistheresponsibilityofthecompany’smanagement.OurexaminationwascarriedoutinaccordancewiththeGuidanceNoteonCertificationofCorporateGovernance(asstipulatedinClause49oftheListingAgreement)issuedbytheInstituteofCharteredAccountantsofIndiaandlimitedtotheproceduresandimplementationthereof,adoptedbythecompanyforensuringthecomplianceoftheconditionsoftheCorporateGovernance.Itisneitheranauditnoranexpressionofopinionofthefinancialstatementsofthecompany.
Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventousandrepresentationmadebythemanagement,wecertifythatthecompanyhascompliedwiththeconditionsofCorporateGovernanceasstipulatedintheabovementionedListingAgreement.
Westatethatinrespectofinvestorgrievancesreceivedduringtheyearended31stMarch,2008noinvestorgrievanceswerependingforaperiodexceedingonemonthagainstthecompany,aspertherecordsmaintainedbythecompany.
Wefurtherstatethatsuchcompliance isneitheranassuranceastothefutureviabilityof thecompanynortheefficiencyoreffectivenesswithwhichthemanagementhasconductedtheaffairsofthecompany.
ForRAY & RAY CharteredAccountants
ABHIJIT NEOGIPlace : Thimpu,Bhutan (Partner)Date : 25thJune,2008 (Membership No. 61380)
17
Auditors’ ReportTo The Members of Tai Industries Limited
1. WehaveauditedtheattachedBalanceSheetofTAI INDUSTRIES LIMITED ason31stMarch,2008,therelatedProfit&LossAccountandtheCashFlowStatementfortheyearendedonthatdate(hereinafterreferredtoas“financialstatements”),allofwhichwehavesignedunder the reference to this report. Thesefinancialstatementsare the responsibilityof theCompany’sManagement.Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.
2. WeconductedourauditinaccordancewiththeauditingstandardsgenerallyacceptedinIndia.Thesestandardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceastowhetherthefinancialstatementsarefreeofanymaterialmisstatement.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements.Anauditalsoincludesassessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,aswellasevaluatingtheoverallfinancialstatementpresentation.Webelievethatourauditprovidesareasonablebasisforouropinion.
3. AsrequiredbytheCompanies(Auditors’Report)Order2003,asamendedbytheCompanies(Auditors’Report)(Amendment)Order2004(“Order”)issuedbytheCentralGovernmentofIndiaintermsofSub-section(4A)ofSection227ofTheCompaniesAct,1956,(the‘Act’)andonthebasisofsuchchecksasweconsideredappropriateandaccordingtotheinformationandexplanationsgiventous,wegiveintheAnnexure,astatementonthemattersspecifiedinparagraphs4and5ofthesaidOrder.
4. Attention is drawn to note no. n and o of Notes to Accounts (Schedule 21). Damaged stock of the Company could not be physically verified by us and we have relied upon the Certification from Management. We further state that we are unable to offer any comment as to the adequacy of the provision in respect of the damaged stock.
5. FurthertoourcommentsintheAnnexurereferredtoinparagraph3above,wereportthat:
5.1 Subject to our comment in paragraph no. 4,wehaveobtainedalltheinformationandexplanations,whichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofouraudit;
5.2 Inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofarasappearsfromourexaminationofthosebooks;
5.3 TheBalanceSheet,theProfitandLossAccountandtheCashFlowStatementdealtwithbythisreportareinagreementwiththebooksofaccount;
5.4 Inouropinion, thefinancialstatementsdealtwithbythisreportcomplywiththeapplicableAccountingStandardsreferredtoinSub-section(3C)ofSection211oftheCompaniesAct,1956;
5.5 Onthebasisofwrittenrepresentationsreceivedfromthedirectors,ason31March2008andtakenonrecordbytheBoardofDirectors,wereportthatnoneofthedirectorsisdisqualifiedason31March,2008frombeingappointedasadirectorintermsofclause(g)ofSub-section(1)ofSection274oftheCompaniesAct,1956’;
5.6 Subject to our comment in paragraph 4 above the effect of which is not readily ascertainable,inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,thesaidfinancialstatementstogetherwiththenotesthereonandattachedtheretogiveintheprescribedmannertheinformationrequiredbytheCompaniesAct,1956andalsogiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia:
a) InthecaseofBalanceSheet,ofthestateofaffairsoftheCompanyasat31March2008;
b) InthecaseoftheProfitandLossAccount,ofthelossfortheyearendedonthatdate;and
c) InthecaseoftheCashFlowStatement,ofthecashflowsfortheyearendedonthatdate.
ForRAY & RAY CharteredAccountants
ABHIJIT NEOGIPlace : Thimpu,Bhutan (Partner)Date : 25thJune,2008 (Membership No. 61380)
18
ANNEXURE TO AUDITORS’ REPORT[Referred to in paragraph 3 of the Auditors’ Report of even date to the Members of TAI INDUSTRIES LIMITED on the financial statements for the year ended 31 March 2008]
1. (a) TheCompanyhasmaintainedproperrecordstoshowfullparticularsincludingquantitativedetailsandsituationofitsfixedassets.
(b) ThefixedassetsoftheCompanyhavebeenphysicallyverifiedbythemanagementaccordingtoaphasedprogrammedesignedtocoveralltheitemsoveraperiodofthreeyears,whichinouropinion,isreasonablehavingregardtothesizeoftheCompanyandthenatureofitsassets.Pursuanttosuchprogramme,aportionofthefixedassetshasbeenphysicallyverifiedbythemanagementduringtheyearandnomaterialdiscrepanciesbetweenthebookrecordsandthephysicalinventoryhavebeennoticed.
(c) Inouropinionandaccordingtotheinformationandexplanationsgiventous,asubstantialpartoffixedassetshasnotbeendisposedoffbytheCompanyduringtheyear.
2. (a) The inventoryoftheCompanyhasbeenphysicallyverifiedbythemanagementduringtheyear. Inouropinion,thefrequencyofverificationisreasonable.
(b) Inouropinion,theproceduresofphysicalverificationofInventoriesfollowedbythemanagementarereasonableandadequateinrelationtothesizeoftheCompanyandthenatureofitsbusiness.
(c) The records of inventory maintained by the Company in respect of its C3 division need to be improved with respect to timeliness of entries and adjustments, quantitative reconciliation of stocks at various locations and unit price. The discrepancies noticed on physical verification of inventory as compared to book records were notmaterial.
3. (a) TheCompanyhasnotgrantedanyloans,securedorunsecured,tocompanies,firmsorotherpartiescoveredintheregistermaintainedunderSection301ofthe‘Act’.Accordingly,theclauses(iii)(b)to(iii)(d)oftheparagraph4oftheOrderarenotapplicable.
(b) TheCompanyhasnottakenanyloans,securedorunsecured,fromcompanies,firmsorotherpartiescoveredintheregistermaintainedunderSection301ofthe‘Act’.Accordingly,theclauses(iii)(e)to(iii)(g)oftheparagraph4oftheOrderarenotapplicable.
4. OnthebasisofourevaluationofInternalControlproceduresandaccordingtotheinformationandexplanationsgiventous,weareoftheopinionthatinternalcontrolproceduresforpurchaseandsaleofinventoryisincommensuratewiththesizeofthecompanyandnatureofitsbusiness.
5. (a) Inouropinionandaccordingtotheinformationandexplanationsgiventous,theparticularsofcontractsofarrangementsreferredtoinSection301ofthe‘Act’havebeenenteredintheRegisterrequiredtobemaintainedunderthatSection.
(b) Inouropinionandaccordingtotheinformationandexplanationsgiventous,thetransactionsmadeinpursuanceofsuchcontractsorarrangementsandexceedingthevalueofrupeesfivelakhsinrespectofapartyduringtheyearhavebeenmadeatpriceswhicharereasonablehavingregardtotheprevailingmarketpricesattherelevanttime.
6. TheCompanyhasnotacceptedanydepositsfromthepublicwithinthemeaningofSections58Aand58AAoranyotherrelevantprovisionsofthe‘Act’andtherulesframedthereunder.
7. TheCompanyhasappointedoutsidefirmofCharteredAccountantsasitsInternalAuditorswhosescopeofworkasInternalAuditorsandcoverageisincommensuratewiththesizeandnatureofCompany’sbusiness.
8. TheCentralGovernmentofIndiahasnotprescribedmaintenanceofcostrecordsundersection209(1)(d)ofthe‘Act’foranyoftheactivitiesoftheCompany.
9. a) Accordingtothe informationandexplanationsgiventousandtherecordsof theCompanyexaminedbyus, inouropinion,theCompanyhasbeenregularindepositing,duringtheyear,theundisputedstatutoryduesincludingprovidentfund,incometax,salestax,agriculturaltax,servicetax,educationcessandothermaterialstatutorydues,asapplicable,withappropriateauthorities.
(b)Accordingtotheinformationandexplanationsgiventous,noundisputedamountspayableinrespectofprovidentfund,investoreducationandprotectionfund,incometax,salestax,wealthtax,servicetax,customsduty,excisedutyandcesswereinarrearsasat31stMarch,2008foraperiodofmorethansixmonthsfromthedatetheybecamepayable.
19
(c) AccordingtotheinformationandexplanationsgiventousandtherecordsoftheCompanyexaminedbyustheparticularsofduesofincometaxasat31stMarch2008whicharenotbeendepositedonaccountofadisputearegivenbelow.Apartfromthesame,therearenoundisputedduesinrespectofincometax,servicetaxandeducationcess.
Name of the Statute Nature Amount Forum where dispute Assessment of dues (Rs.) is pending Year to which the amount relates
IncomeTaxAct IncomeTax 7,28,206 CommissionerofIncomeTax(Appeal) 2005-2006
10. TheCompanyhasnoaccumulatedlossasat31stMarch2008andithasnotincurredanycashlossesinthefinancialyearendedonthatdateorintheimmediatelyprecedingfinancialyear.
11. AccordingtotherecordsoftheCompany,examinedbyusandtheinformationandexplanationsgiventous,thecompanyhasnotdefaultedinrepaymentofduestoabankorfinancialinstitutions.TheCompanyhasnotissuedanydebenture.
12. TheCompanyhasnotgrantedanyloansandadvancesonthebasisofsecuritybywayofpledgeofshares,debentureandothersecurities.
13. Theprovisionsofanyspecialstatuteapplicabletochitfund/nidhi/mutualbenefitfund/societiesarenotapplicabletotheCompany.
14. Inouropinion,theCompanyisnotdealerortraderinshares,securities,debenturesandotherinvestments.
15. Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyhasnotgivenanyguaranteesforloanstakenbyothersfrombanksorfinancialinstitutionsduringtheyear.
16. Inouropinionandaccordingtotheinformationandexplanationsgiventous,onanoverallbasis,thecompanyhasnotobtainedanytermloanduringtheyear.
17. OnthebasisofanoverallexaminationoftheBalanceSheetandCashFlowStatementoftheCompany,inouropinionandaccordingtotheinformationandexplanationsgiventous,therewerenofundsraisedonshort-termbasis,whichhavebeenusedforlong-terminvestments.
18. TheCompanyhasnotmadeanypreferential allotmentof shares toanypartiesandcompaniescovered in the registermaintainedunderSection301ofthe‘Act’duringtheyear.
19. TheCompanyhasnotissuedanydebenture.
20. TheCompanyhasnotraisedanymoneybywayofpublicissueduringtheyear.
21. During the course of our examination of books and records of the Company carried out in accordance with generallyacceptedauditingpracticesinIndiaandaccordingtotheinformationandexplanationsgiventous,wehaveneithercomeacrossanyinstanceoffraudonorbytheCompanynorhavewebeeninformedofsuchcasebythemanagement.
ForRAY & RAY Chartered Accountants
ABHIJIT NEOGIPlace : Thimpu,Bhutan (Partner)Date : 25thJune,2008 (Membership No. 61380)
�0
Balance Sheet as at 31st March, 2008 As at 31st As at 31st March, 2008 March, 2007 Schedules Rs. Rs.
I. SOURCES OF FUNDS SHAREHOLDERS’ FUNDS Capital 1 60,000,000 60,000,000 ReservesandSurplus 2 88,644,562 100,413,137 148,644,562 160,413,137 LOAN FUNDS SecuredLoan 3 4,867,368 - DeferredTaxLiability - 756,240 (Note2(c)onSchedule21) TOTAL 153,511,930 161,169,377II. APPLICATIONS OF FUNDS FIXED ASSETS 4 GrossBlock 74,097,188 74,073,085 Less :AccumulatedDepreciationandAmortisation 47,554,783 41,493,767 NetBlock 26,542,405 32,579,318 INVESTMENTS 5 8,631,173 8,631,173 Deferred Tax Asset 45,983 - (Note2(c)onSchedule21) CURRENT ASSETS, LOANS AND ADVANCES Inventories 6 28,802,614 36,804,533 SundryDebtors 7 230,519,150 168,455,395 CashandBankBalances 8 10,463,945 10,761,491 OtherCurrentAssets 9 59,620 24,736 LoansandAdvances 10 126,529,083 127,082,566 396,374,412 343,128,722 Less : CURRENT LIABILITIES AND PROVISIONS CurrentLiabilities 11 265,651,725 204,883,476 Provisions 12 12,430,318 18,286,360 278,082,043 223,169,836 NET CURRENT ASSETS 118,292,369 119,958,886 TOTAL 153,511,930 161,169,377
Notes on Accounts 21 TheschedulesreferredtoaboveandattachedtheretoformanintegralpartoftheBalanceSheet. ThisistheBalanceSheetreferredtoinourreportofevendate.
ForRAY & RAY Chartered Accountants
ABHIJIT NEOGI Partner Membership No. 61380
Place : Thimpu,Bhutan Date : 25thJune,2008
ForandonbehalfoftheBoard
WANGCHUK DORJIManaging Director
VINAY KILLADirector
INDIRA BISWASCompany Secretary
�1
Profit and Loss Account for the Year ended 31st March, 2008
For the year ended For the year ended Schedule 31st March, 2008 31st March, 2007 Rs. Rs.
INCOME
Turnover 13 446,352,560 441,493,359
ProfitonSaleofInvestments - 82,791,584
OtherIncome 14 12,938,409 15,819,487
Increase/(Decrease)inInventories 15 6,376,168 (24,354,209)
TOTAL 465,667,137 515,750,220
EXPENDITURE
Purchases 16 364,354,504 361,871,255
Employee’sremunerationandwelfareexpenses 17 13,738,686 15,070,334
Interest 18 507,725 5,654,943
Administrative,SellingandOtherExpenses 19 76,195,803 78,753,666
Depreciation/Amortisation 6,287,831 7,963,046
TOTAL 461,084,549 469,313,244
Profit/(Loss) before taxes & extraordinary items 4,582,588 46,436,976
PriorPeriod&Extra-ordinaryitems 20 15,197,714 -
Profit/(Loss) before taxation -10,615,126 46,436,976
Taxation
-CurrentTax - 5,750,610
-FringeBenefitTax 369,321 355,185
-DeferredTax (802,223) (899,109)
IncomeTaxpaidforearlieryears 1,774,351 -
Profit after Taxation -11,956,575 41,230,290
Balancebroughtforwardfrompreviousyear 96,127,249 54,896,959
Balance carried to Balance Sheet 84,170,674 96,127,249
Notes on Accounts 21
EarningPerShare(Rs) -1.99 6.87
(Note2(l)onSchedule21)
TheschedulesreferredtoaboveandattachedtheretoformanintegralpartoftheProfitandLossAccount
ThisistheProfitandLossAccountreferredtoinourreportofevendate.
ForRAY & RAY Chartered Accountants
ABHIJIT NEOGI Partner Membership No. 61380
Place : Thimpu,Bhutan Date : 25thJune,2008
ForandonbehalfoftheBoard
WANGCHUK DORJIManaging Director
VINAY KILLADirector
INDIRA BISWASCompany Secretary
��
Cash Flow Statement for the Year ended 31st March, 2008
Year ended Year ended 31 March, 2008 31 March, 2007 Rs. Rs.
CASH FLOW FROM OPERATING ACTIVITIES
NetProfitbeforeTaxandextraordinaryitems 4,582,588 46,436,976
Adjustmentsfor:
Depreciation 6,287,831 7,963,046
InterestReceived (38,459) (36,648)
DividendReceived (5,275,876) (7,113,423)
ProvisionforGratuity 213,435 617,712
ProvisionForLeaveEncashment 878,316 488,181
(Profit)/LossonSaleofFixedAssets - (14,312)
Interestpaid 507,725 5,654,943
Lossonsaleofinvestments - (82,791,583)
CommissionReceived (14,153,911) (13,751,828)
Investmentwrittenoff - -
Liabilitiesnolongerrequired,writtenback (1,535,410) (1,242,303)
Debts&otherdebitswrittenoff - 4,370,984
DiscountGiven 1,265,054 1,019,022
Operating Profit before Working Capital changes (7,268,707) (38,399,232)
AdjustmentforchangesinWorkingCapital:
(Increase)\DecreaseinTradeandotherReceivables (61,545,155) (42,629,376)
(Increase)\DecreaseinInventories 8,073,502 24,354,209
Increase\(Decrease)inTradepayables 54,923,567 26,092,772
CommissionReceived 13,241,958 13,530,169
Cash Generated from Operations 7,425,164 (17,051,459)
Interestpaid (507,725) (5,654,943)
Taxespaid (2,341,000) (4,617,586)
LeaveEncashmentPaid (409,134) (340,267)
GratuityPaid (26,972) (30,779)
Cash Flow before Extra ordinary items 4,140,333 (27,695,034)
ExtraOrdinaryItems (14,803,153) -
Net Cash from Operating Activities ( A ) (10,662,820) (27,695,034)
CASH FLOW FROM INVESTING ACTIVITIES
PurchaseofFixedAssets (250,918) (852,915)
SaleofInvestments 117,647,271
SaleofFixedAssets 226,814 19,000
InterestReceived 24,538 32,442
DividendReceived 5,275,876 7,113,423
AdvanceforPurchaseofinvestments 47,700 -
Net Cash from Investing Activities ( B ) 5,324,011 123,959,221
�3
Year ended Year ended 31 March, 2008 31 March, 2007 Rs. Rs.
CASH FLOW FROM FINANCING ACTIVITIES
Proceeding from Borrowings :
SecuredLoans 4,867,368 (91,217,605)
DividendPaid(DepositedtoCentralGovernment) (382,585) (400)
DiscountReceived 556,480
Net Cash used in Financing Activities ( C ) 5,041,264 (91,218,005)
Netincrease/(decrease)inCashandCashEquivalents(A+B+C) (297,545) 5,046,183
OpeningBalanceofCashandCashEquivalents 10,761,491 5,715,308
Closing Balance of Cash and Cash Equivalents 10,463,945 10,761,491 Notes :
1. TheaboveCashFlowStatementhasbeencompiledfromandisbasedontheBalanceSheetasat31March,2008andtherelatedProfitandLossAccountfortheyearendedonthatdate.
2. TheaboveCashFlowStatementhasbeenpreparedunder“IndirectMethod”assetoutintheAccountingStandard(AS)on“CashFlowStatement”,AS-3,issuedbyTheInstituteofCharteredAccountantsofIndiaandreallocationsrequiredforthispurposeareasmadebytheCompany.
3. Figuresinparenthesisrepresentoutflows.
4. Previousyear’sfigureshavebeenregrouped,wherevernecessary,toconformcurrentyear’spresentation.
ThisistheCashFlowreferredtoinourreportofevendate.
ForRAY & RAY Chartered Accountants
ABHIJIT NEOGI Partner Membership No. 61380
Place : Thimpu,Bhutan Date : 25thJune,2008
ForandonbehalfoftheBoard
WANGCHUK DORJIManaging Director
VINAY KILLADirector
INDIRA BISWASCompany Secretary
�4
As at 31st As at 31st March 2008 March 2007 Rs. Rs.
Schedules to Balance Sheet
SCHEDULE : 3
SECURED LOANS
OverdraftAccountwithCenturionBank 4,867,368 -
(Securedagainsthypothecationofpresentandfurtherinventories,
bookdebts&equitablemortgageoftheimmovablepropertyofthecompany)
4,867,368 -
SCHEDULE : 1
SHARE CAPITAL
AUTHORISED
7,500,000(2007-7,500,000)EquitySharesofRs.10/-each 75,000,000 75,000,000
ISSUED, SUBSCRIBED, CALLED AND PAID UP
6,000,000(2007-6,000,000)EquitySharesofRs.10/-eachfullypaidup [Outoftheabove20,000(2007-20,000)EquityShareswereallotted asfullypaidbonussharesbycapitalisationofGeneralReserve] 60,000,000 60,000,000
60,000,000 60,000,000
SCHEDULE : 2
RESERVES & SURPLUS
GeneralReserve
BalanceasperlastAccount 3,690,788 3,690,788
Less:AdjustmentrelatingtoOpeningLiabilityinrespectofEmployeeBenefitin
accordancewithtransitionalprovisionofAccountingStandard-15(Revised) 188,000 -
3,878,788 3,690,788
CapitalReserve 595,100 595,100
ProfitandLossAccount 84,170,674 96,127,249
88,644,562 100,413,137
�5
Sch
edul
e Fo
rmin
g P
art
of
Bal
ance
She
et A
s A
t 31
st M
arch
, 200
8
SC
HE
DU
LE :
4
FIX
ED
AS
SE
TS
G
RO
SS
BLO
CK
D
EPR
ECIA
TIO
N/A
MO
RTI
SATI
ON
N
ET B
LOC
K
PAR
TIC
ULA
RS
Cos
t as
on
Add
ition
A
djus
tmen
t To
tal a
s on
A
s on
A
dditi
ons
A
djus
tmen
t To
tal a
s on
A
s at
A
s at
01
.04.
2007
du
ring
the
year
du
ring
the
year
31
.03.
2008
0
1.04
.200
7 du
ring
the
year
o
n sa
les
31.0
3.20
08
31.
03.2
008
31.0
3.20
07
Rs.
R
s.
Rs.
R
s.
Rs.
R
s.
Rs.
R
s.
Rs.
R
s.
Bui
ldin
g 2
,896
,312
-
-
2
,896
,312
1
,344
,613
9
6,28
4
1
,440
,897
1
,455
,415
1
,551
,699
Furn
itur
e 1
9,03
6,10
3
-
1
40,2
00
18,
895,
903
8
,692
,304
1
,945
,529
1
40,2
00
10,
497,
633
8
,398
,270
1
0,34
3,79
9
Offi
ce E
qipm
ent
5,0
27,6
98
109
,560
8
6,61
4
5,0
50,6
43
2,1
85,4
65
408
,389
8
6,61
4
2,5
07,2
40
2,5
43,4
03
2,8
42,2
33
Ele
ctri
cal E
quip
men
t 2
,839
,796
2
,050
-
2,8
41,8
46
1,0
82,7
60
246
,454
-
1,3
29,2
14
1,5
12,6
32
1,7
57,0
36
Mot
or V
ehic
les
1,5
21,8
16
-
-
1,5
21,8
16
1,2
51,2
29
68,
694
-
1,3
19,9
23
201
,892
2
70,5
86
Com
pute
rs
23,
828,
063
1
14,5
56
-
2
3,94
2,61
92
0,30
2,53
4
1,3
39,7
14
-
2
1,64
2,24
8
2,3
00,3
71
3,5
25,5
29
Pla
nt &
Mac
hine
ry
15,
219,
198
-
-
1
5,21
9,19
8
4,8
69,4
09
1,4
39,6
55
-
6
,309
,065
8
,910
,133
1
0,34
9,78
8
Tota
l (A
) 7
0,36
8,98
6
226
,166
2
26,8
14
70,
368,
337
39,
728,
316
5
,544
,719
2
26,8
14
45,
046,
220
25,
322,
116
30,
640,
670
INTA
NG
IBLE
AS
SE
TS
Sof
twar
e (N
ote-
2)
3,7
04,0
99
24,
752
-
3,7
28,8
51
1,7
65,4
51
743
,112
-
2,5
08,5
63
1,2
20,2
89
1,9
38,6
49
Tota
l (B
) 3
,704
,099
2
4,75
2
-
3
,728
,851
1
,765
,451
7
43,1
12
-
2
,508
,563
1
,220
,289
1
,938
,649
Gra
nd T
otal
(A+B
) 7
4,07
3,08
5
250
,918
2
26,8
14
74,
097,
188
41,
493,
767
6
,287
,831
2
26,8
14
47,
554,
783
26,
542,
405
32,
579,
319
PR
EV
IOU
S Y
EA
R
73,
432,
081
8
52,9
15
211
,912
7
4,07
3,08
43
3,73
7,94
3
7,9
63,0
46
207
,224
4
1,49
3,76
73
2,57
9,31
73
9,69
4,13
8
No
tes
:
1.Bu
ildin
g in
clud
es R
s.20
,48,
838(
2006
-200
7-R
s.20
,48,
838)
pur
chas
ed o
n 97
yea
rs le
ase
basi
s
�.Th
eso
ftwar
eha
sbe
ena
cqui
red
fori
nter
nalu
se.T
hes
ame
has
been
am
ortis
eda
son
the
basi
sst
ated
inN
ote
1(h
)on
Sche
dule
�1.
26
As at 31st As at 31st Particulars No. of Face March, 2008 March, 2007 Shares Value Cost Cost Rs. Rs. Rs.
SCHEDULE 5
INVESTMENTS-LONG TERM
Other Investments:
Equity Shares Fully Paid (Quoted )
UshaIspatLimited 300 10 3,000 3,000
CoreHealthCareLimited 100 10 15,000 15,000
IndustrialFinanaceCorporationofIndia 100 10 3,500 3,500
StateBankofIndia 150 10 15,000 15,000
BataIndiaLimited 4,375 10 152,250 152,250
InfosysTechnologiesLimited 104 5 3,448 3,448
RelianceIndustriesLimited 1,030 10 102,167 102,167
ISIBarsLimited 250 10 2,500 2,500
RelianceCapitalLimited 51 10 2,554 2,554
RelianceCommunicationLimited 1,030 5 76,036 76,036
RelianceEnergyLimited 77 10 14,343 14,343
RelianceNaturalResourcesLimited 1,030 5 1,375 1,375
NirmaLtd. 1 5 - -
TOTAL (A) 391,173 391,173
Equity Shares Fully Paid (Unquoted)
JamshedpurInjectionPowderLimited 800,000 10 8,000,000 8,000,000
TOTAL (B) 8,000,000 8,000,000
Others Fully Paid (Quoted)
UTIMasterGain92(Note-1) 10,000 10 100,000 100,000
SBIMagnumMultiplierPlus1993 10,000 10 100,000 100,000
MorganStanleyMutualFund 4,000 10 40,000 40,000
TOTAL (C) 240,000 240,000
GRAND TOTAL [(A)+(B)+( C)] 8,631,173 8,631,173 Notes:
1. UTIMastergain92isinthenameofTashiAgroIndustriesLTD, Companyistakingstepstochangethename.
As at 31st As at 31st March, 2008 March , 2007 (Rs.) (Rs.)
2. AggregateBookValue
ofquotedInvestments 631,173 631,173
ofunquotedInvestments 8,000,000 8,000,000
TOTAL 8,631,173 8,631,173
�7
As at 31st As at 31st March, 2008 March ,2007 (Rs.) (Rs.)
3. Marketvalue/NetAssetValue(NAV)ofquotedinvestment
a) Shares 5,684,216 2,029,372
b) Others
I) UTIMasterGain92(NAV) 425,700 307,000
II) SBIMagnumMultiplerPlus1993(NAV) 623,100 501,700
III) MorganStanleyMutualFund(NAV) 211,400 190,280
TOTAL 6,944,416 3,028,352
4. ReceivedonallotmentmadebyNirmaLimitedon26.06.07intheratioof1(one)fullypaidupEquityShareofRs.5/-underaCompositeSchemeofCompromiseandArrangementforDemergerofanUndertakingofCoreHealthcareLimited(CHL)andvestingthesameintotheCompany(NirmaLimited),approvedbyHon’bleHighCourtofGujaratondated01.03.07
SCHEDULE : 6
INVENTORIES(As certified by Management)
StockofTradedGoods-Good 28,802,614 36,804,533
(ReferNoteNo2(n)onSchedule21)
StockofTradedGoods-Damaged 14,378,087 -
43,180,701
Less:ProvisionforDamagedStock 14,378,087 -
28,802,614 36,804,533
SCHEDULE : 7
SUNDRY DEBTORS
(Unsecured-ConsideredGood)
Debtsexceedingsixmonths 6,049,995 89,006,044
OtherDebts 224,469,155 79,449,351
230,519,150 168,455,395
SCHEDULE : 8
CASH AND BANK BALANCES
Cashinhand 911,710 856,892
BalanceswithScheduledBankson:
CurrentAccounts 8,327,788 8,211,143
DividendAccounts 655,078 1,037,663
FixedDeposits 569,369 655,793
(pledgedagainstlettersofcreditandBankGuarantee)
10,463,945 10,761,491
�8
As at 31st As at 31st March, 2008 March ,2007 (Rs.) (Rs.)
SCHEDULE : 9
OTHER CURRENT ASSETS
(Unsecured-ConsideredGood)
Interestaccuredonfixeddeposits 59,620 24,736
59,620 24,736
SCHEDULE : 10
LOANS AND ADVANCES
(Unsecured - Considered Good)
Advancesrecoverableincashorkindorforvalueto
bereceived(Note2(b)onSchedule21) 107,258,669 98,960,181
PrepaidExpenses 428,998 550,644
Deposits[includingdepositswithGovernmentAuthorities- 8,805,035 11,049,905
-inNationalSavingsCertificateRs.Nil(2007-Rs.6,000)
-inOtherDepositRs.127,860(2007-Rs.127,860)]
IncomeTax[includingTaxDeductedatSourcesRs.1,000,533]
(2007-Rs.1,393,006)andFringeBenefitTaxRs.12,72,473(2007-Rs.782,473)] 10,036,381 16,521,836
126,529,083 127,082,566
SCHEDULE : 11
CURRENT LIABILITIES
SundryCreditors
MicroandSmallEnterprise 2,034,756 -
(ReferNote2(d)onSchedule21)
OtherthanMicroandSmallEnterprise 250,022,520 192,738,435
252,057,276 192,738,435
AdvancesfromCustomers 5,958,217 4,827,597
UnclaimedDividend 628,660 903,939
OtherLiabilities 7,007,572 6,413,505
265,651,725 204,883,476
SCHEDULE : 12
PROVISIONS
Particulars As at 1st Addition Total Payments / Reversals As at 31st
April 2007 Utilization/ March 2008
Rs. Rs. Rs. Rs. Rs. Rs.
Gratuity 1,555,624 213,435 1,769,059 14,712 367,000 1,387,348
LeaveEncashment 424,334 968,000 1,392,334 353,587 60,000 978,747
IncomeTax 15,488,744 - 15,488,744 - 6,611,500 8,877,244
FringeBenefitTax 817,658 369,321 1,186,979 - - 1,186,979
TOTAL 18,286,360 1,550,756 19,837,116 368,299 7,038,500 12,430,318
�9
Schedules to Profit and Loss Account
For the year ended For the year ended 31 March, 2008 31 March, 2007 Rs. Rs.
SCHEDULE : 13 TURNOVER Sales : FruitProducts 102,474,487 93,066,797CalciumCarbide 28,285,157 30,170,560Charcoal 44,504,467 43,148,980FoodProduct 104,852,000 83,769,500SaleofRetailProducts 152,082,538 177,585,693Commissiononsaleofaboverelatedproducts[TaxesDeducted 14,153,911 13,751,828atSources-Rs.911,953(2007-Rs.251,659)] 446,352,560 441,493,359
SCHEDULE : 14 OTHER INCOME DividendonLongTermInvestments-Others 5,275,876 7,113,423Interest-Gross[TaxesDeductedatSourcesRs.13,921(2007-Rs.4,206)] 38,459 36,648Liabilitiesnolongerrequired,writtenback 1,535,410 1,242,303ProfitonSaleofFixedAssets - 14,312MiscellaneousIncome 6,088,664 7,412,800 12,938,409 15,819,487
SCHEDULE : 15 ACCRETION / ( DECCRETION ) OF INVENTORIES OpeningStock 36,804,533 61,158,742Less:ClosingStock 43,180,701 36,804,533AccretionofInventories 6,376,168 (24,354,209) SCHEDULE : 16 PURCHASE OF TRADED GOODS FruitProducts 81,498,368 76,611,315CalciumCarbide 25,693,303 27,120,326Charcoal 41,713,701 32,986,330FoodProducts 79,220,500 69,355,000RetailProducts 133,861,213 154,286,090CarraigeInward,OctroiExpensesandOtherrelatedexpenses 2,367,419 1,512,194 364,354,504 361,871,255
SCHEDULE : 17 EMPLOYEES REMUNERATION AND WELFARE EXPENSES Salaries,Wages,Bonusetc 11,891,024 11,885,165ContributiontoProvidentandOtherFunds 1,254,147 1,132,115StaffWelfare 593,515 2,053,054 13,738,686 15,070,334
30
For the year ended For the year ended 31 March, 2008 31 March, 2007 Rs. Rs.
SCHEDULE : 18
INTEREST
OnSecuredLoans 368,450 5,273,881
OtherInterest 139,275 381,063
507,725 5,654,943
SCHEDULE : 19
ADMINISTRATIVE, SELLING & OTHER EXPENSES
Rent 6,908,716 5,856,508
RepairstoBuilding 590,188 594,589
RepairstoOthers 19,111,812 17,353,998
Insurance 250,704 240,456
RatesandTaxes 1,600,171 2,001,423
Electricity 6,106,607 7,278,727
TravellingandConveyance 3,530,728 3,566,871
CommunicationExpense 1,809,117 1,951,523
LegalandProfessionalcharges 1,971,700 1,938,664
PrintingandStationery 797,469 999,478
Cuttingandotherprocessingcharges - 1,031,456
CarriageOutward 11,329,487 9,349,842
CommissiononDepotSales 673,733 620,575
BreakageandDamages 2,447,041 3,519,777
Discount 1,265,054 1,019,022
Advertisement,PublicityandSalesPromotion 1,825,968 1,972,761
OtherSellingExpenses 4,678,353 6,326,981
Debtsandotherdebitswrittenoff - 4,370,984
BankCharges 1,723,995 1,793,434
MiscellaneousExpenses(Note2(h)onSchedule21) 5,771,080 3,051,047
SecurityCharges 1,978,378 2,067,781
CommonexpensesStores 1,825,502 1,847,767
76,195,803 78,753,666
SCHEDULE : 20
PRIOR PERIOD AND EXTRA-ORDINARY ITEMS
ProvisionforDamagedStock(Note2(o)onSchedule21) 14,378,087 -
PriorPeriodAdjustment 819,627 -
15,197,714 -
31
SCHEDULE - 21
ACCOUNTING POLICIES AND NOTES ON THE FINANCIAL STATEMENTS
1. Significant Accounting Policies
(a) Basis of preparation of Financial Statements TheFinancialStatementshavebeenpreparedontheaccrualbasisofaccounting,underthehistoricalcostconvention,
inaccordancewiththeaccountingprinciplesgenerallyacceptedinIndiaandcomplywiththeAccountingStandardsissuedbyTheInstituteofCharteredAccountantsofIndiaandtherelevantprovisionsoftheCompaniesAct,1956.
(b) Use of Estimates Thepreparationof thefinancialstatements inconformitywithGenerallyAcceptedAccountingPrinciplesrequires
managementtomakeestimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesandthedisclosureofcontingentliabilitiesasatthedateoftheFinancialStatementandthereportedamountofrevenueandexpensesduringthereportingperiod.Actualresultscoulddifferfromtheseestimates.Anyrevisiontoaccountingestimatesisrecognisedintheperiodinwhichtheresultsareknown/materialised.
(c) Fixed Assets FixedAssetsarestatedatcost.Costincludestaxes,duties,freightandotherincidentalexpensesrelatedtoacquisition,
improvementsandinstallationoftheassets.
(d) Depreciation (i) Depreciationisprovidedon“WrittenDownValueMethod”,attheratesandinthemannerspecifiedinSchedule
XIVoftheCompaniesAct,1956. (ii) AssetscostingRs.5,000orlessaredepreciatedinfullintheyearofpurchase.
(e) Impairment An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment
loss ischargedtoprofitandlossaccount intheyear inwhichanasset is identifiedas impaired.The impairmentlossrecognizedinprioraccountingperiodsisreversediftherehasbeenachangeintheestimateofrecoverableamount.
(f) Investments LongtermInvestmentsarestatedatcostlessprovisionforpermanentdiminution,ifany,invalueofsuchinvestments.
Currentinvestmentsarestatedatlowerofcostandfairvalue.
(g) Inventories Inventoriesarevaluedatlowerofcostornetrealizablevalue.Costiscomputedonthebasisofcostofpurchase
inclusiveoffreightetc,on“First-In-First-Out”basis.
(h) Intangible Assets Software which is not an integral part of related hardware, is treated as intangible asset and are capitalized in
accordancewiththerelevantAccountingStandard.Thecostofsuchassetsisamortizedonstraight–linemethodoveraperiodoffiveyearsbasedontheestimatedeconomiclifeoftheasset.ThecarryingvalueofthecapitalizedsoftwarecostsisreviewedateachBalanceSheetdate.
(i) Revenue Recognition (i) Sales,netoftaxes,areaccountedforwhenpropertyinthegoodsistransferredtothecustomers. (ii) CommissionisaccountedforasandwhentheCompany’srighttoreceivethesameisestablished. (iii) Dividendisrecognised,whentherighttoreceivethedividendarises.
(iv) ItemsofIncome/Expenditurearerecognizedonaccrualbasis,unlessotherwisestated
(j) Employee Benefits (i) DefinedContributionSchemes ProvidentFundsandEmployeesState InsuranceFundareadministeredbyCentralGovernmentof Indiaand
contributiontothesaidfundsarechargedtoProfitandLossAccountonactualbasis. (ii) DefinedBenefitSchemes Provisionforleaveencashmentandgratuityliabilityaremadeonthebasisofactuarialvaluation.
(k) Borrowing Cost Borrowingcostsattributabletotheacquisitionorconstructionofaqualifyingassetarecapitalizedaspartofthecost
ofsuchasset.Aqualifyingassetisonethatnecessarilytakessubstantialperiodoftimetogetreadyforintendeduse.Otherborrowingcostsarerecognizedasexpenseintheperiodinwhichtheseareincurred.
3�
(l) Foreign Currency Transactions Transactions denominated in foreign currencies are recorded at the rates of exchange prevailing on the date of
transactions.Monetaryassetsandliabilitiesdenominatedinforeigncurrencyareconvertedattherateofexchangeprevailingon thedateofBalanceSheet.Anyexchange lossorgain,onsuchconversion isaccounted for in theProfitandLossAccount.Exchangegain/lossrelatingtoacquisitionoffixedassetsisadjustedtothecostofthoseassets.
(m) Treatment of Prior Period and Extra Ordinary Items (i) Anymaterialitems(otherthanthosearisingoutofover/underestimationinearlieryears)arisingasaresultof
errororomissioninpreparationofearlieryearsfinancialstatementsareseparatelydisclosed. (ii) Anymaterialgains/losseswhicharisefromtheeventsortransactionwhicharedistinctfromordinaryactivities
oftheCompanyareseparatelydisclosed.
(n) Income Tax Incometaxexpensecomprisesofcurrenttaxanddeferredtaxchargeorcredit.CurrentTaxisdeterminedasthe
amountoftaxpayableinrespectoftaxableincomefortheyear. DeferredTaxexpensesorbenefitisrecognizedontimingdifferencesbeingthedifferencebetweenthetaxableincome
andaccountingincomethatoriginateinoneperiodandarecapableofreversalinoneormoresubsequentperiods.Deferredtaxassetsandliabilitiesaremeasuredusingthetaxrates lawsthathavebeenenactedorsubstantivelyenactedbythebalancesheetdate.
Intheeventofunabsorbeddepreciationandcarryforwardoflosses,deferredtaxassetsarerecognizedonlytotheextentthatthereisvirtualcertaintythatsufficienttaxableincomewillbeavailableinfuturetorealizesuchassets.Inothersituations,deferredtaxassetsarerecognizedonlytotheextentthatthereisreasonablecertaintythatsufficientfuturetaxableincomewillbeavailabletorealizetheseassets.
(o) Provisions, Contingent Liabilities and Contingent Assets Provisionsarerecognizedwhenthecompanyhasa legalandconstructiveobligationasaresultofapastevent,
forwhichitisprobablethatacashoutflowwillberequiredandreliableestimatecanbemadeoftheamountoftheobligation.
ContingentliabilitiesaredisclosedwhentheCompanyhasapresentobligationanditisprobablethatacashoutflowwillnotberequiredtosettletheobligation.
ContingentassetsareneitherrecognisednordisclosedintheFinancialStatements.
2. Notes on the Balance Sheet and Profit & Loss Account
a. Contingent liabilities
As at 31st March 2008 As at 31st March 2007 (Rs.) (Rs.)
(a) Claimnotacknowledgedasdebts- (i)SalesTaxunderappeal NIL 4,16,983.00 (ii)IncomeTaxunderappeal 7,28,206.00 NIL (b) BankGuarantees 2,25,000.00 2,25,000.00
b. AdvancesrecoverableincashorinkindorforvaluetobereceivedincludeRs.3,36,45,103.29(previousyear-Rs.750,85,467)onaccountofTaiProjectsPrivateLtd,inwhichoneofthedirectorsoftheCompanyisalsoadirectorincorporatedwithanobjectofsettingupofaFamilyEntertainmentComplex(FEC)atNonadangainEasternMetropolitan,KolkatainpursuanceofadecisiontomakeinvestmentinthesaidCompany,whichwasapprovedbytheshareholdersoftheCompanyinitsAnnualGeneralMeetingheldon17September2002.
c. Deferred Taxation Themajorcomponentsofdeferredtaxationarisingoutoftimingdifferencesare-
Liabilities As at 31st March 2008 As at 31st March 2007 (Rs.) (Rs.)
Depreciation 7,58,252 14,22,694 TotalLiabilities–(A) 7,58,252 14,22,694 Assets ProvisionforGratuityandLeaveEncashment 804,235 6,66,454 TotalAssets–(B) 804,235 6,66,454 Net Deferred Tax Liability / (Asset) [(A) - (B)] (45,983) 7,56,240
33
d. TheamountduetoMicroandSmallEnterprisesasdefinedin‘TheMicro,SmallandMediumEnterprisesDevelopmentAct,2006’(asdisclosedinSchedule-CurrentLiabilities)hasbeendeterminedtotheextentsuchpartieshavebeenidentifiedonthebasisofinformationavailablewiththecompany.ThedisclosuresrelatingtoMicroandSmallenterprisesasat31stMarch,2008areasunder:
Sr.no. Description Amount outstanding as at 31st March,2008. (Rs.)
1. Theprincipalamountremainingunpaidtosuppliersasattheendoftheyear 20,34,756
2. Theinterestduethereonremainingunpaidtosupplierasattheendoftheaccountingyear NIL
3. Theamountofinterestpaidintermsofsection16,alongwiththeamountofthepaymentmadetothesupplierbeyondtheappointeddayduringtheyear2007-08 NIL
4. Theamountofinterestdueandpayablefortheperiodofdelayinmakingpayment(whichhavebeenpaidbutbeyondtheappointeddayduringtheyear)butwithoutaddingtheinterestspecifiedundertheact. NIL
5. Theamountofinterestaccruedduringtheyearandremainingunpaidattheendoftheaccountingyear. NIL
6. Theamountoffurtherinterestremainingdueandpayableeveninthesucceedingyears,untilsuchdatewhentheinterestduesasaboveareactuallypaidtothesmallenterprises,forthepurposeofdisallowanceasadeductibleexpenditureundersection23. NIL
Thepreviousyear’sfiguresarenotgivenastherewerenoreportedMicroandSmallenterprisesupto31stMarch,2007.
e. Employee benefit
TheemployeebenefitshavebeendeterminedinaccordancewiththeAccountingStandard-15issuedbytheInstituteofCharteredAccountantsofIndia.
A. Defined Benefit Plans
Gratuity & leave–ThegratuityliabilityisdeterminedonthebasisofactuarialvaluationusingtheProjectedUnitCreditMethod.Thismethodrecognizeseachperiodofserviceasgivingrisetoadditionalunitofemployeebenefitentitlementandmeasureseachunitseparatelytobuildupthefinalobligation.Theleaveencashmentisrecognizedinthefinancialstatementinthesamemannerasgratuity.
Gratuity Leave Encashment
(Rs) (Rs)
a. Reconciliation of opening and closing balances of Defined Benefit Obligations DefinedBenefitObligationatthebeginningoftheyear 11,88,000 6,03,000 CurrentServiceCost 2,22,000 4,42,000 InterestCost NIL 59,000 Actuarial(gain)/loss -9,000 2,28,000 Benefitpaid -25,000 -3,54,000 DefinedBenefitObligationattheyearend 13,76,000 9,78,000 b. Reconciliation of fair value of assets and obligations
Fairvalueofplanassetsasat31stMarch,2008 Notfunded Notfunded Presentvalueofobligationasat31stMarch,2008. 13,76,000 9,78,000 AmountrecognizedinBalanceSheet 13,87,348 9,78.747
34
Gratuity Leave Encashment
(Rs) (Rs) c. Expenses recoginsed during the year
Currentservicecost 2,22,000 4,42,000 Interestcost Nil 59,000 Expectedreturnonplanassets Nil Nil Actuarial(gain)/loss -9,000 2,28,000 Netcost 2,13,000 7,29,000 Actuarial method Projected Unit Creditd. Actuarial assumptions For Gratuity 31.03.2007 31.03.2008 Discountrateperannumcompound 7.50% 7.50% Rateofincreasesalaries 15.00% 15.00% Expectedaverageremainingworkinglivesofemployees(years) 21.09 WithdrawalRates Varyingbetween2%perannumand
1%perannumdependingonduration andageoftheemployees
For Leave Liability
31.03.2007 31.03.2008
Discountrateperannumcompound 7.50% 7.50% Rateofincreasesalaries 15.00% 15.00% Expectedaverageremainingworkinglivesofemployees(years) 13.00 21.09 WithdrawalRates Varyingbetween2%perannumand
1%perannumdependingonduration andageoftheemployees
B. Defined Contribution Plans
ThecontributionstoDefinedContributionPlansrecognizedasexpensesintheProfit&Lossaccountfortheyearended31stmarch,2008areasfollows:
Nature of contributions Rs.
Employers’contributionstoProvidentFund 5,71,839.00
Employers’contributionstoPensionFund 3,95,064.81
f. Certain confirmation of balances from Sundry Debtors, Loans & Advances, Deposits and Sundry Creditors, includingAdvancesreceivedfromCustomersareawaitedandtheaccountreconciliationofsomeparties,whereconfirmationshavebeenreceived,areinprogress.Adjustmentfordifferences,ifany,arisingoutofsuchconfirmation/reconciliationwouldbemadeintheaccountsonreceiptoffinalagreedbalances/reconciliation.Themanagementisoftheopinionthattheimpactofadjustment,ifany,isnotlikelytobesignificant.
Furthermore, in theopinionof themanagement,allcurrentassets, loansandadvances includingadvancesoncapitalaccounts,wouldberealizedatthevaluesatwhichthesearestatedintheaccountsintheordinarycourseofbusiness.
g. Managing Director’s Remuneration :
Particulars 2007-08 2006-07
Rs. Rs.
(i) Salary 13,20,000 13,10,000
(ii) ContributiontoProvidentFund 1,58,400 1,57,200
(iii) Monetaryvalueofperquisites - -
Total 14,78,400 14,67,200
35
h. Miscellaneous expenses include -
Particulars 2007-08 2006-07 Rs. Rs.
(a) Amountpaid/payabletoAuditors
(i) StatutoryAuditFee 90,000 75,000
(ii) TaxAuditFee 20,000 20,000
(iii) OtherCertificates 55,500 55,500
(iv) ReimbursementofExpenses[(IncludingService-Tax
Rs.23,510)2006-07-Rs.21,655] 48,510 46,655
Total 2,14,010 1,97,155
(b) DirectorsFees 2,64,000 2,00,000
i. ThecompanyhasenteredintoaleaseagreementforobtainingapossessionofapremiseatSaltLake,Kolkataforoneofitsretailshop.Thefutureminimumleasepaymentforthesaidleasedpremiseareasfollows:
Sr. no. Duration Amount
1. Notlaterthanoneyear; 17,80,200
2. Laterthanoneyearandnotlaterthanfiveyears 78,74,718
3. laterthanfiveyears 155,49,281
j. TheCompanyispredominantlyengagedintradingoffruitproducts,calciumcarbideandcharcoal. Accordingly revenues fromtheaboveproductscomprise theprimarybasisofsegmental information in thesefinancial
statements. Thecompanyhasnoexportsalesandassuchtherearenoreportablegeographicalsegments. Segmental Revenue, Segmental Results, Segmental Assets and Segmental Liabilities include the respective amounts
identifiabletoeachofthesegmentstotheextentpossible,asalsoamountsallocatedonareasonablebasis. Thenetexpenses,whicharenotdirectlyattributabletotheBusinessSegment,areshownasunallocatedcorporatecost. ItisnotpossibletoallocateAssetsandLiabilitiesoftheCompanybetweentheSegmentsandthereforetheyaretreated
entirelyasunallocatedCorporateAssetsandCorporateLiabilitiesrespectivelyandconsequentlytheyarenotdisclosedseparatelyhere.
Particulars Fruit Products Carbide Charcoal Others C3-Retail Total
(Rs.) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.)
Revenue 21,34,26,135 3,60,67,099 4,45,04,467 69,79,230 15,83,14,038 45,92,90,969
(PreviousYear) (18,31,99,479) (3,75,59,207) (4,31,48,980) (84,06,487) (18,49,98,693) (45,73,12,846)
Profitonsaleof - - - (8,27,91,584) - (8,27,91,584)
Investment
Operating Expenses 19,19,97,154 3,07,09,000 4,19,62,000 6,33,634 18,26,11,338 44,79,13,126
(PreviousYear) (19,60,28,000) (3,58,68,000) (4,11,96,000) (96,67,465) (19,72,90,000) 48,00,49,465
Operating Income 2,14,28,981 53,58,099 25,42,067 63,45,996 -2,42,97,300 1,13,77,843
(PreviousYear) (-1,28,29,521) (16,91,207) (19,52.980) (8,15,30,606) (-1,22,91,307) (6,00,54,965)
Un-allocable Expenses 67,95,556
(PreviousYear) (1,36,17,989)
Net Profit Before Tax 45,82,287
(PreviousYear) (464,36,976)
Income Tax (including Deferred Taxation and Fringe Benefit Tax) 13,41,448
(PreviousYear) 52,06,686
Prior Period & Extra-ordinary items 1,51,97,714
(PreviousYear) --
Net Profit / (-) Loss After Tax -1,19,56,875
(PreviousYear) (4,12,30,290)
36
k. Related Parties Disclosure AsperAccountingStandard-18‘RelatedPartyDisclosures’issuedbytheInstituteofCharteredAccountantsofIndia,the
namesoftherelatedpartiesaregivenbelow:
Nature of relationship Names of the related parties
Key management Personnel lDashoTopgyalDorji lDashoWangchukDorji
Enterprise in which key Management lBhutanFruitProductsPrivateLimited Personnel have significant influence lBhutanCarbideandChemicalsLimited lBhutanFerroAlloysLimited lTashiInfocomLtd. lTashiCommercialCorporation–SuperMarket lTashiCommercialCorporation lTaiProjectsPrivateLimited lBhutanEcoVenturesPvt.Ltd. lRijalTashiIndustriesPvt.Ltd. lTashiMetalsLimited lBhutanBreweryPvt.Ltd. lTashiBeveragesCompanyLimited. lDrukPlasterandChemicalsLimited.
lDrukSatAirCorporationLimited. lBhutanToursimCorporationLimited.
Thefollowingtableprovidesthetotalamountoftransactions,whichhavebeenenteredintowithrelatedpartiesfortherelevantfinancialyear:-
Enterprise in which Key Management Key Management Personnel Personnel have significant influence Fortheyearended Fortheyearended Fortheyearended Fortheyearended 31.03.2008 31.03.2007 31.03.2008 31.03.2007 Rs. Rs. Rs. Rs. Purchaseofgoods 7,82,70,014 7,45,88,420 SaleofGoods 3,42,12,467 Nil RenderingofServices 5,40,350 5,08,240 CommissionReceived 1,38,81,661 1,37,51,829 RoyaltyPaid 1,91,287 2,35,577 AdvancetorelatedParty 3,36,45,103 7,50,85,467 OutstandingBalanceDuetoCompany 11,47,32,823 14,47,84,592 OutstandingBalancePayablestoCompany 14,04,23,750 12,41,73,944 Remunerations-DashoTopgyalDorjiDashoWangchukDorji 13,20,000 13,10,000Director’sSittingFees-DashoTopgyalDorji 24,000 24,000DashoWangchukDorji Nil Nil
l. Earnings Per Share (EPS)
Particulars 2007-08 2006-07 Rs. Rs.
Profit(Loss)afterTaxattributabletoEquityShareholders (11,956,575) 41,230,290 WeightedAveragenumberofEquityShareOutstanding 60,00,000 60,00,000 EPS–Basic&diluted(Rs.). (1.99) 6.87
37
m.DuringthelastthreepreviousyearsthecompanyhadreceivedtheapprovalfromtheCentralGovernmentexemptingitfromthedisclosuresofquantitativeinformationasrequiredunderparagraph3(ii)bofPart-IIofSchedule-VIoftheCompaniesAct,1956.InthecurrentyearthecompanyhasappliedtotheCentralGovernmenton3rdMarch,2008forthesameexemption,thereplyofwhichisstillawaited.Inviewofthistherequiredquantitativeinformationisnotdisclosedinthefinancialyear2007-2008also.
n. TheValueofclosingstockamountingtoRs.43,180,701/-iscertifiedbythemanagementofthecompanyandisincludedinthestockoftradedgoods.
o.TheextraordinaryitemsrepresentsprovisionforstockamountingtoRs.143,78,087/-,damagedduetofloodinrespectofwhichclaimhasalreadybeenlodgedwiththeinsurancecompany.Theinsurancecompanyhascompletedthenecessaryformalitiesregardingtheexaminationbythesurveyorbutthesettlementofthesameisstillpending.
p. (a) Previousyearsfigureshavebeenregrouped/rearranged,wherevernecessarytoconformcurrentyear’spresentation.
(b) Figuresinparenthesisrepresentpreviousyear’sfigures.
InformationpursuanttoPartIVofScheduleVItotheCompaniesAct,1956.
Balance Sheet Abstract and Company’s General Business Profile:
(I) Registration Details RegistrationNumber 59695 StateCode 21 BalanceSheetDate 31.3.2008
(II) Capital raised during the year (Amount in Rs.thousands) PublicIssue Nil RightsIssue Nil BonusIssue Nil PrivatePlacement Nil
(III) Position of mobilization and deployment of funds (Amount in Rs.thousands) TotalLiabilities 153512 TotalAssets 153512 Sources of Funds Paid-upcapital 60000 ReservesandSurplus 88645 SecuredLoans 4867 UnsecuredLoans Nil
Applications of funds NetFixedAssets 26542 Investments 8631 DeferredTaxAsset 46 NetCurrentAssets 118292 Miscellaneousexpenditure Nil AccumulatedLosses Nil
(IV) Performance of the Company (Amount in Rs.thousands) Turnover(includingotherincome) 459291 Totalexpenditure 469906 Profit(+)/loss(-)beforeTax (-)10615 Profit(+)/loss(-)afterTax (-)11956 Earningpershare(inRs.)annualized (-)1.99 Dividendrate(%) Nil
(V) Generic names of the principal products and/ services of the company as per monetary terms:
Itemcodeno.(ITCCode) NotApplicable Productdescription NotApplicable
SignaturestoSchedules1to21
ForRAY & RAY Chartered Accountants
ABHIJIT NEOGI Partner Membership No. 61380
Place : Thimpu,Bhutan Date : 25thJune,2008
ForandonbehalfoftheBoard
WANGCHUK DORJIManaging Director
VINAY KILLADirector
INDIRA BISWASCompany Secretary
38
Addendum to the Accounts for the year ended 31st March, 2008.
ToTheMembers
YourDirectorswish todrawyourattention toNote2mofSchedule21of theAccounts for theyearended
31stMarch,2008.
Ithasbeenstated inthesaidnotethatduringthe lastthreepreviousyearstheCompanyhadreceivedthe
approvalfromtheCentralGovernmentexemptingitfromthedisclosuresofquantitativeinformationasrequired
underparagraph3 (ii)bofPart– IIofSchedule–VIof theCompaniesAct,1956. Intheyearunderreview
theCompanyhasappliedtotheCentralGovernmenton3rdMarch,2008forthesameexemption,thereply
of which is still awaited. In view of this the required quantitative information is not disclosed for the year
2007–2008.
YourDirectorsnowwishtoinformyouthatpursuanttoanapplicationdated3rdMarch2008,undersection
211(4)of theCompaniesAct,1956,yourCompanyhas received from theCentralGovernment,Ministryof
CorporateAffairs,theirOrderNo.46/116/2008–CL–IIIdated10thJuly,2008exemptingyourCompanyfrom
disclosingthequantitativedetailsenvisagedinpara3(ii)(b)ofPartIIofScheduleVItotheCompaniesAct,1956.
AccordinglytheinformationpublishedintheAccountsfortheyearended31stMarch,2008isinconformity
withtherequirementsofthesaidOrder.
ForandonbehalfoftheBoard
WANGCHUK DORJIManaging Director
VINAY KILLADirector
INDIRA BISWASCompany Secretary
Place : KolkataDate : 24thJuly,2008
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