| Dear Members,
The directors have great pleasure in presenting 20th Annual Report
together with the Audited Financial statements for the year ended on
31st March 2014.
[1] OPERATIONS:
(Amount in Rs. lacs)
Particulars 2013-2014 2012-2013
Turnover and other receipts 3577.31 7301.74
Other Income 96.82 64.68
Profit before Depreciation and Tax 55.23 154.47
Less: Depreciation 113.54 112.79
Balance (58.31) 41.67
Less: Provision for Taxation 0.00 7.94
Deferred Tax (14.26) 18.68
Profit after Tax (72.57) 1.46
During the current year your company has not achieved a reasonable
level of growth in terms of profit in spite of various unfavorable
reasons. Though the company has attained a good turnover growth but
because of additional expenses, the company could not achieve profit as
expected. During the year company has started expansion project and
after successful commissioning of the same. We are hoping that the
phenomenal growth shall be achieved during the next coming years.
[2] MARKET SCENARIO
The products manufactured by your Company are mainly used in
development of infrastructure facilities. Your directors are happy to
inform you that with the more and more emphasis by the Central and
State Governments on infrastructure development, there is a huge
potential demand for the products of the company.
Further due to the addition of versatile range of products, we are now
able to provide wide range which caters to need of all customers under
a one roof.
[3] DIRECTORS
As per provisions of Section 152(6) of the Companies Act, 2013, Mr.
Prabhubhai Patel, Director liable to retire by rotation, offers himself
for re-appointment at the general meeting. Mr. Nareshbhai Patel, Mr.
Rakeshkumar Moghariya and Mr. Bipinchandra Patel are being appointed
as Independent Directors for consecutive five financial years as per
provisions of Section 149 of the Companies Act, 2013. Ms. Jainal
Bhaveshbhai Patel is being appointed as a Woman Director as per
provisions of Section 149 of the Companies Act, 2013. Mr. Ghanshyambhai
Patel, Mr. Darshan Patel and Mrs. Ashlesha Shah, Directors of the
Company have resigned from the Board during the year. Necessary
resolutions for the appointment /re-appointment of the aforesaid
directors have been included in the notice convening the ensuing AGM
and details of the proposal for appointment/re-appointment are
mentioned in the explanatory statement of the notice. Your directors
commend their appointment/re-appointment. All the directors of the
Company have confirmed that they are not disqualified from being
appointed as directors in terms of Section 164 of the Companies Act,
2013 (Previously being Section 274(1) (g) of the Companies Act, 1956).
[4] INSURANCE
The Company has made adequate arrangements for insuring of Factory
buildings, other buildings, Plant and Machineries including erection,
utilities etc. against fire, explosion and other perils.
[5] DEPOSITS
During the year under review, Company has not accepted inter corporate
Deposits, which falls under Section 58A of Companies Act, 1956.
[6] EMPLOYEE RELATION
Relations between the employees and the management continued to remain
cordial during the year under review. The Directors hereby place on
record their appreciation of the efficient and loyal services rendered
by the Company's employees at all levels.
The information required to be published under the provisions of
section 217 (2A) of the Companies act 1956 read with companies
(particulars of employees) Rules 1975 as amended is given below:
Employees receiving remuneration exceeding Rs. 24 Lacs
Per year if employed for the whole year Nil
Employees receiving remuneration exceeding Rs. 2 Lacs Per
Month if employed for the part of the year Nil
[7] AUDITORS
M/s Mehul Kanani & Co., Chartered Accountants, Ahmedabad, Statutory
Auditor of the Company, (Firm Registration No. 133039W) holds office
until the conclusion of the ensuring Annual General Meeting. As per
newly inserted Section 139 of the Companies Act, 2013, they are
appointed for a term of five consecutive financial years, for which
necessary resolution is put to vote in this AGM, as stated in the item
no. 3 of the notice, they are eligible for appointment to conduct
statutory audit. The company has received certificate from the auditor
to the effect that their appointment if made, would be within the
prescribed limits under the Companies Act.
Notes to the accounts referred to in Auditor's report are self
explanatory and therefore do not call for any further comments
[8] QUALIFICATIONS IN AUDITOR'S REPORT
M/s. Mehul Kanani & Co., chartered Accountants, the auditors of the
company has provided certain qualifications on accounts in their
Auditor's Report. The same are self explanatory and therefore do not
call for any further comments. Directors have discussed the
qualifications made by auditors at arms' length and have undertaken to
take due care in future.
[9] ENERGY, TECHNOLOGY AND FOREIGN EXCHANGE
In terms of Section 217 (1) of the companies act 1956 read with the
Companies (Disclosure of particulars in the Report of the Board of
Directors) Rules, 1988 with respect to conservation of energy,
technology absorption and foreign exchange earnings/out go is given in
Annexure.
[10] DIRECTORS RESPONSIBILITY STATEMENT
In accordance with the Companies (Amendment) Act, 2000 the Directors
state that:
(a) In the preparation of the annual accounts, all applicable
accounting standards have been followed and proper explanations
relating to material departures if any have been furnished.
(b) Accounting policies as listed in Schedule 2.1 to the financial
statements have been selected and consistently applied and prudent
judgments and estimates have been made so as to give a true and fair
view of the state of affairs of the company as on 31st March, 2014 and
of the profit of the company for the accounting year ended on that
date.
(c) Proper and sufficient care for maintenance of adequate accounting
records has been in accordance with the provisions of this act so as to
safeguard the assets of the company and to prevent and detect fraud and
other irregularities.
(d) The annual accounts have been prepared on a going concern basis.
[11] CORPORATE GOVERNANCE
Report of Directors on Corporate Governance is annexed to and forms
part of this report.
[12] ACKNOWLEDGEMENT
The board wishes to place on record their sincere thanks for the
Co-operation and support received from various agencies of the Central
and State Governments as also financial institutions and bankers to the
company.
Your directors take this opportunity to place on record their
appreciation of the dedicated services put in by employees,
contractors, consultants at all levels and their contribution to the
progress of the Company.
Place: Ahmedabad By order of the Board of Directors
Date: 31/05/2014 For, Gopal Iron & Steels Co. (Guj) Ltd.
(Mr. Bhavesh Patel)
Managing Director
(DIN: 00287559) |