Micro Forge (India) Ltd. के निदेशक की रिपोर्ट

Mar 31, 2009

The Directors have pleasure in presenting the 21 st Annual Report and Audited Statement of Accounts for the year ended 31 st March, 2009.

1] FINANCIAL RESULTS (Rs. in Lacs)

Financial Year Ended on 31.03.2009 31.03.2008

Export Sales & Export Incentives 529.09 3235.78

Domestic sales and Income 1542.90 4680.27

Job Work Income 46.32 0.00 Total Sales & Income 2118.31 7916.05

Profit Before Depreciation -923.52 -1701.08

Profit After Depreciation -944.78 -1722.40

Provisions for Taxes 0.15 1.25

Profit after Tax -944.93 -1723.66



2] REVIEW OF OPERATION

During the Financial year 2007-08 company became Sick Industrial Unit within the meaning of Sick Industrial company (Special Provision) Act, 1985, and during the year company has not carried out major operation.

3] DIVIDEND

As the company have incurred heavy loss during the year so no dividend is recommeded by the Board of Directors

4] DIRECTORS:

Shri Gordhanbhai G. Patel is a Director retiring by a rotation and being a eligible offers himself for reappointment. There was no other changes in the Board of Directors of the company during the year under review.

5 PARTICULARS OF EMPLOYEES

There were no employee in receipt of remuneration exceeding the limits presribed under Section 217(2 A) of the Companies Act, 1956 read with the Companies (Particulars of Employees).

6 CONSERVATION OF ENERGY, TECHNOLOGY AND FOREIGN EXCHANGE :

Pursuant to Rule 2 of the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, the details are given in Annexure-I, and forms apart of this Report.

7 AUDIT COMMITTEE:

In compliance of the provisions of the Section-292A of the Companies Act, 1956 and the Listing Agreement with the Stock Exchanges, the Audit Committee discharges its functions in accordance with the provisions of the Listing Agreement and Companies Act, 1956. The Audit Committee of the company comprises of the following Directors

Shri Shivabhai Patel

Shri Rasikbhai Patel

Shri Gordhanbhai Patel



8 DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to the requirement under section 217(2AA) of the Companies Act, 1956, with respect to Directors Responsibility Statement, it is hereby confirmed:

i) That in the preparation of the accounts for the financial year ended 31 st March, 2009, the applicable accounting standards have been followed alongwith proper explanation relating to material departures;

ii) That the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that were reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit or loss of the company for the year under review;

iii) That the Direcotrs have taken proper and sufficient care for the maintenance of the adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

iv) That the Directors have prepared the accounts for the financial year ended 31 st March, 2009 on a going concern" basis.

9 CORPORATE GOVERNANCE:

Your company has been practicing the principles of good Corporate Governance over the years and it is continuous process. A detailed report on Corporate Governance along with Auditors Certificate on its compliance is attached herewith as a part of the Annual Report.



11 AUDITORS

The Auditor M/S. M.B.SARDHARA & ASSOCIATES , Chartered Accountants Rajkot, shall retire at the conclusion of the ensuing annual general meeting and being eligible offer themselves for re-appointment.The Board of directors of the company recommends their re-appointment as Auditor.

12 AUDITOR S REPORT :

The company is not able to provide the Bank statements by reason of which the Auditor does not able to varify bank balance of the Company. The Company was passing through slump and by reason fo which the relation of Company and Bank was not as before. The company has send many reminders and letters for statements to the Bank, However there was no response by the Bank in this Regards. As the Bank has not provided statement to the Comapny , in turn company can not able to provide the required information to the Statutory Auditor.

Further the company was very regular in its internal audit systems. However for the current year because heavy loss, the company has closed down for the period between June to October, and because of this reason the working of company was very disturben and for that reason company not able to maintain interal audit as required under the Law. However it is Clarified that The Company will soon arrage the required internal audit systerms.

Except above cited point the Report of the Auditor is self explanatory and does not required any clarification or comments.

13] APPRECIATION :

Your Directors take this opportunity to thank all investors, banks, regulatory, governmental authorities for their continued co-operation during the year. Your Directors sincerely acknowledges the significant contribution made by all the employees for their dedicated services to the Company.

FOR AND ON BEHALF OF THE

BOARD OF DIRECTORS,

Date : 6th August, 2009 SHIVABHARG PATEL

Place : Rajkot Chairman