Herman Milkfoods Ltd. के निदेशक की रिपोर्ट

Mar 31, 2009

The Directors have great pleasure in presenting the 18th Annual Report together with Audited Accounts of the company for the financial year ended on 31st March 2009.

FINANCIAL RESULTS Rs. In lacs

2008-09 2007-08

Sales Turnover & Other Income 7781.22 4873.60

Operating Profit 219.88 175.21

Interest 7.39 15.36

Depreciation 75.80 72.16

Profit before tax 144.08 103.04

Provision for tax including for:

- Current year NIL NIL

- Earlier years NIL NIL

- Deferred tax NIL NIL

Net profit after tax 144.08 103.04

Appropriations :

Proposed Dividend NIL NIL

Transfer ic General Reserves NIL NIL

In view of the inadequate profits, your Directors are not in a position to recommend any dividend for the year.

BUSINESS OPERATIONS

The sales turnover and other income during the financial year was Rs.7781.00 lacs resulting in net profit of Rs 144.08 lacs.

During the year 2008-09, the company has entered into an agreement with The Ambala Coop. Milk Producers Union Ltd., Ambala, Haryana, The Bihar State Coop. Milk Producers Federation Ltd., The H.P. State Coop. Milk Producers Federation Ltd., Totu, Shimla and The Nestle India Ltd., Moga for processing of milk into various milk products.

DIRECTORS

Mrs. Rachna Garg and Mr. Virsa Singh Sidhu, Directors of the company are retiring by rotation at the forthcoming Annual General Meeting and being eligible have offered themselves for re-appointment.

AUDITORS

M/s Taranjeet & Associates, Chartered Accountants, Chandigarh, the retiring auditors of the Company will hold office till the conclusion of the next Annual General Meeting and are recommended for reappointment. The Company has received certificate from Auditors for their reappointment.

DEPOSITS

The company has not accepted any deposit within the meaning of section 58 A of the Companies Act, 1956 and rules made there under for the period under review.

PARTICULARS OF EMPLOYEES

None of the employee was in receipt of the remuneration over and above the limits prescribed u/s 217(2A) of the Companies Act, 1956 read with Companies (Particular of Employees) Rules, 1975 as amended.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS & OUTGO

The information required under 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 with respect to the conservation of energy, technology absorption and foreign exchange earning and outgo is attached.

BIFR STATUS

The Management feels pleasure in informing the shareholders that Honble BIFR has discharged the Company from the purview of the SICA/BIFR on 15.01.2009. Hence, the Company is no more a sick industrial company u/s 3(1) (o) of the SICA Act, 1985.

AUDITORS REPORT

The observations in the Auditors report have been dealt with in notes to accounts and same being self explanatory, do not requires further clarification.

LISTING AGREEMENT

The Company is regularly filing all the quarterly/annual reports required to be submitted under Listing Agreement to the Bombay Stock Exchange/ Ludhiana Stock Exchange. Further, the management is making all efforts to revoke the suspension of trading of shares of the company which is still in process.

DIRECTORS RESPONSIBILITY STATEMENT

As required under section 217 (2AA) of the Companies Act, 1956 the Directors state that:

i) In preparation of annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures. ii) The Directors had 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.

ACKNOWLEDGEMENT

The Directors, place on record their appreciation for the support and assistance received from banks and government authorities for their valuable support. Your directors also wish to place on record their gratitude to the valued shareholders of the company. The Board also records their appreciation to the contribution of their dedicated milk suppliers, dealers, employees and all concerned during the year.

Date: 01.09.2009 For and on behalf of the Board

Place: Chandigarh HERMAN MILKFOODS LIMITED.

Sd/-

(RACHANA GARG) CHAIRPERSON