Bhagheeratha Engineering Ltd. के निदेशक की रिपोर्ट

Mar 31, 2010

The Directors present the 34th Annual Report together with the Audited Accounts of the Company for the Financial Year 2009-10.

Operating Results:

The Gross income from operations during the year under review was Rs.4218 Lakhs as against Rs.5111 Lakhs in the previous year. The Company incurred a loss of Rs. 1900 Lakhs as against a loss of Rs. 1437 Lakhs in the previous year.

The Company has preferred claims against various Clients to mitigate the cumulative loss incurred by the Company due to termination of the projects, which are pending in arbitration proceedings. The progress in arbitration cases is being closely followed up. The Company is confident of getting decisions in its favour so as to realize substantial portion of the claims in due course.

CDR Scheme:

We have been informed by CDR Cell that the Corporate Debt Restructuring Scheme (CDR) implemented by Consortium of Banks under the supervision of State Bank of India stands withdrawn with effect from 29th September 2008.

Now the Company has submitted a proposal for One Time Settlement of the total dues to the Banks and the same is under their active consideration.

Existing Projects:

The work at Salem under National Highway Authority of India on National Highway-7 is completed except for some minor works.

Fixed Deposits:

As at the end of the year the total fixed deposits repayable aggregate to Rs.88 Lakhs as against Rs.109 Lakhs in the previous year. Every effort is being made to liquidate this liability as early as possible.

Directors Responsibility Statement pursuant to Section 217 (2AA) of the Companies Act, 1956.

The Board of Directors hereby confirms:

1. that in the preparation of the annual accounts, applicable accounting standards were followed with suitable procedure for material departure.

2. that the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period.

3. that the Directors have taken adequate and proper care for the maintenance of 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, and,

4. that the Directors have prepared the annual accounts on a going concern basis.

Particulars of Employees:

During the year 2009-10 no employee of the Company was in receipt of remuneration in excess of the limit prescribed in Sub- section (2A) of Section 217 of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules 1975.

The tenure of Shri Tomy C Madathil as Managing Director expires atthe conclusion of the ensuing Annual General Meeting. Proposal for his reappointment as Managing Director is placed before the Annual General Meeting for decision. Shri E. S. Menon, Director, will retire at the ensuing Annual General Meeting and being eligible, offers himself for re-election.

Auditors:

M/s. P.C. Varghese & Co., Chartered Accountants, Auditors of the Company, retire at the ensuing Annual General Meeting, and being eligible for re-appointment, have expressed their willingness to accept office of the Statutory Auditors, if re-appointed. They have given a certificate to the effect that the re-appointment, if made, would be within the limit prescribed under Section 224(1 B) of the Companies Act, 1956.

Bankers:

Your Directors place on record their sincere gratitude to the Consortium of Banks consisting of State Bank of India, Syndicate Bank, Union Bank of India and Dena Bank for their co-operation and confidence reposed on the Company.

Particulars pursuant to Section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988:

a. Conservation of Energy:

Energy conservation measures are taken in all activities of the Company by careful monitoring and implementation of suitable measures for optimizing energy consumption.

b. Technology Absorption:

On account of the nature of operations of the Company, no special efforts have been put in this regard.

c. Foreign Exchange earnings and outgo:

No foreign exchange was used or earned during the year and previous year.

Acknowledgement

Your Directors thank the Central and State Governments, Financial Institutions, Financial Agencies, Stock Exchanges, Sub- contractors and their staff, Material Suppliers, Consultants, Clients, Deposit Holders and Shareholders for their continued support and co-operation. The Directors also place on record their appreciation for the services rendered by employees at all levels.

For and on behalf of the Board of Directors

Sd/-

Kochi V.C. Antony

11th August 2010 CHAIRMAN