Alcobex Metals Ltd. के निदेशक की रिपोर्ट

Mar 31, 2010

The Director have pleasure in presenting the 40th Annual Report and Audited Statement of Accounts of the Company for the year ended on 31st March, 2010.

FINANCIAL RESULTS

Particulars 2009-2010 2008-2009 (Rs. in Lacs) (Rs. in Lacs)

Loss before depreciation, interest, taxation 592.86 616.40 and extraordinary items

Add: Depreciation 138.88 141.73

Add: Interest 1347.47 1374.29

Loss 2079.21 2132.42

Add/Less: Prior Period adjustment / 7.39 1.71 exceptional /extraordinary items

Net Loss 2086.60 2134.13

Deficit as per last year 16083.01 13777.18

Less: Provisions for Deferred Tax Assets/ (5265.65) 278.30 Liabilities (Net)

Less : Debenture Redemption Reserve &Capital Reserve W/back

Adjusted against General Reserve -- --

LOSS CARRIED TO BALANCE SHEET 23435.26 15633.01

OPERATIONS

Due to severe liquidity problems production had been falling month after month and it had to be totally stopped from mid December, 2009 following withdrawal of power & water supply to the company by the authorities concerned. The company achieved a production of 410.62 M.T and a turn over of Rs. 1396.95 Lacs during the year as against the production of 1555 M.T. and a turn over of Rs. 6010.34 Lacs during the previous year.

EXPORT

The companys export during the year under report amounted to Rs 401.84 Lacs (FOB Value) as against Rs. 3610.56 Lacs during the previous year.

DIVIDEND

Owing to the losses incurred by the company, your directors express their inability to recommend payment of dividend on the equity shares for the year under report.

FUTURE OUTLOOK

The acute shortage of Working Capital continues to haunt the operation of the company. The company is making serious efforts to locate a strategic investor to finance the working capital and also make one time settlement with its secured lenders. Future outlook of the company will depend upon the success of companys efforts to locate a strategic investor.

INDUSTRIAL RELATIONS

Industrialrelations had been generally satisfactory.

DIRECTORS

Shri S.R. Kanunga retire by rotation at the 40th Annual General Meeting and being eligible offer themselves for reappointment.

Shri Vineet Bhandari ceased to be additional director with effect from 30,h September,2010 Shri S.K. Singh, Nominee Director of PNB ceased to be director consequent upon his resignation with effect from 28th April, 2010. Shri D. K. Kankaria ceased to be director with effect from 17th June, 2010 due to his sad demise.

The profile of the Director seeking reappointment at this Annual General Meeting is given in the Report on Corporate Governance

AUDITORS REPORT

The Company has provided full disclosure in the audited accounts of the company through Notes to the accounts and accounting policies forming part of the Balance sheet as at 31" March, 2010 in respect of qualifications mentioned by Auditors in their Report. Further the notes to the Accounts and Accounting Policies referred to in Auditors Report are self-explanatory and the qualifications have been suitably explained therein. In addition to the same, the Director would like to state that:

(a) The company has prepared accounts on the going concern basis as the Company has partially continued with its operation and arrangements are being made to tide over liquidity problem. Accordingly, the company is of view that there is no impairment of assets and also accounted for deferred tax assets.

(b) The company is in process of obtaining balance confirmation certificates from various parties and also reconciling various accounts.

(c) Steps are been taken to avoid delays inpayment of statutory dues.

AUDITORS

The auditors of the company M/s Ray & Ray, Chartered Accountants, retire at the 40th Annual General Meeting of the company and have given their consent for reappointment.The Company has also received a certificate from them under section 224 (IB) of the Companies Act, 1956.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to 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 except to the extent disclosed in Significant Accounting Policies and Notes to the Accounts (Schedule 25 & 26).

2. Appropriate accounting policies have been selected and applied consistently and judgments and estimates that are reasonable and prudent have been made, 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/loss of the Company for that period.

3. Proper and sufficient care for the maintenance of adequate accounting record in accordance with the provisions of the Companies Act, 1956, has been taken for safeguarding the assets of the company and prevailing and detecting fraud and other irregularities, to the best of our knowledge and ability.

4. The annual accounts have been prepared on agoing concern basis.

SICK INDUSTRIAL COMPANIES (SPECIAL PROVISIONS) ACT, 1985

The package earlier given by the Corporate Debt Reconstruction cell of IDBI to the Company has since been withdrawn by it.The Honorable BIFR is considering various issue relating to the future of the Company. A notice has also been served to the Company under Section 13 of the SARFAESI Act by some secured lenders seeking payment of their dues from the Company.

PERSONNEL

There was no employee of the company drawing salary in excess of the limits prescribed under section217 (2A) of the Companies Act, 1956.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUT GO

In accordance with the requirement of section 217 (1) (e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 a statement showing particulars in respect of above is annexed and forms part of this report.

CORPORATE GOVERNANCE

The Report on Corporate Governance is annexed and forms part of this report.

OTHER INFORMATION

The Audit Committee of the Company reviewed the financial statements for the year under review at its meeting held on 8,h September, 2010 and recommended the same for the approval of the Board of Directors.

As per the listing agreement with the stock exchange, the Management discussion & Analysis report, Report on Corporate Governance and Auditors Certificate regarding compliance of all conditions of Corporate Governance form a part of this report.

ACKNOWLEDGMENT

Your Directors acknowledge with gratitude, the assistance and cooperation provided by the Govt, of Rajasthan, the Companys bankers and financial institutions, suppliers, customers and various other Government Departments.

For and on behalf of the Board of Directors

Place:Jaipur (G.C.Kanunga) (S.R.Kanunga)

Date : 8th September, 2010 Managing Director Director