| To the Members of Taparia Tools Limited,
The Directors have pleasure in presenting the 48th Annual Report on the
operations of the Company together with the Audited Accounts for the
year ended March 31, 2014.
FINANCIAL PERFORMANCE
(Rs. in lakhs)
2013-14 2012-13
Revenue (Net) 26737.74 24195.98
Profit before interest
and depreciation 2101.32 1747.17
Less: Interest 162.89 299.50
Gross Profit 1938.43 1447.67
Less : Depreciation 85.12 66.65
Profit for the year
before tax 1853.31 1381.02
Less : Provision for taxation
Current Tax 675.25 442.34
Deferred Tax (13.43) (18.86)
Profit after tax 1191.49 957.54
Add : Surplus brought
forward from previous year 3217.32 2357.78
Profit available for
Appropriations 4408.81 3315.32
Less : General Reserve 119.15 98.00
Surplus carried to
Balance Sheet 4289.66 3217.32
DIVIDEND
The Directors have not recommended any dividend for the year under
review. The Company has retained the funds for expansion of the
activities of the company by introduction of new product range and
purchase of Machinery & Equipments etc.
REVIEW OF OPERATIONS
During the year under review, though the inflation rate was high and
the economic growth was lower than expected and also a drought-hit
agriculture output in some States, the Company's working during the
year is satisfactory.
The Company's total revenue (Net of excise duty) were Rs. 26,737.74 Lakhs
that represent an increase of 10.51% over the sales of Rs. 24,195.98
Lakhs in the previous year. Profit earned after tax is Rs. 1191.49 Lakhs
in the current year against Rs. 957.54 Lakhs in the previous year.
Despite continuously rising cost of inputs and keen competition in hand
tools market, the current results of the Company are satisfactory. The
Company has revised its product prices w.e.f. 10th September, 2013 to
cope with increased costs.
CORPORATE GOVERNANCE
The Company is committed to maintain the highest standards of Corporate
Governance and adhere to the Corporate Governance requirements set out
by SEBI. The Company has also implemented several best Corporate
Governance practices as prevalent globally.
The Report on Corporate Governance as stipulated under Clause 49 of the
Listing Agreement forms part of the Annual Report.
The requisite Certificate from the Auditors of the Company confirming
compliance with the conditions of Corporate Governance as stipulated
under the aforesaid Clause 49, is attached to this Report.
PERSONNEL
The industrial relations with employees continued to be satisfactory
during the year under review. There was no employee drawing salary of
more than Rs. 5,00,000/- per month or Rs. 60,00,000/- per annum. Hence, the
requirement of a statement giving information and particulars of the
employees as required under section 217 (2A) of the Companies Act, 1956
read with Companies (Particulars of Employees) Rules, 1975 as amended,
is not applicable.
DIRECTORS
The Board is sad to inform the Members that Dr. M. G. Nathani,
Executive Director, passed away on 29-03-2014. During his tenure as
Executive Director, D r. M.G. Nathani greatly contributed to the
progress of the Company and introduced many new and novel ideas for
development and growth of the Company. The Board places on record its
appreciation of the great contribution made by him to the growth and
development of the Company. May his soul rest in peace.
Shri M.P .Taparia, Shri D.P. Taparia and Shri Virendraa Bangur,
Directors of the Company retire by rotation at the ensuing Annual
General Meeting and being eligible, offer themselves for
re-appointment. Brief profile of the Directors is given in the Annexure
to the Notice.
It is proposed to appoint Shri P. N. Shah, Shri M. V. Gore, Shri B. B.
Ladda, Shri G. S. Manasawala and Shri Rajeev J. Mundra, as Independent
Directors on the Board of the Company to hold office for 5 (five)
consecutive years for a term up to the conclusion of the 53rd Annual
General Meeting of the Company in the calendar year 2019. Brief profile
of these Directors is given in the Annexure to the Notice.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to section 217(2AA) of the Companies Act, 1956, with respect
to Directors' Responsibility Statement, it is hereby confirmed that:
1) In the preparation of the Annual Financial Statements, the
applicable accounting standards have been followed along with proper
explanation relating to material departures;
2) Selected appropriate 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 of the
Company for the year under review;
3) Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 and for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities;
4) The Annual Financial Statements have been prepared on a "going
concern" basis.
AUDITORS
The Auditors, M/s. Batliboi and Purohit, Chartered Accountants, retire
at the ensuing AGM and have confirmed their eligibility and willingness
to accept office, if re-appointed.
The notes to the Accounts referred to in the Auditors' Report are
self-explanatory and, therefore, do not call for any further comments.
COST AUDITORS
The Company has appointed M/s. CY and Associates,
Cost Accountants, as a Cost Auditors of the Company for the financial
year 2014-15.
ENERGY, TECHNOLOGY & FOREIGN EXCHANGE
Information on conservation of energy, technology absorption, foreign
exchange earnings and outgo required to be given pursuant to section
217(1)(e) of the Companies Act, 1956 read together with the Companies
(Disclosure of particulars in the Report of Board of Directors) Rules,
1988 is annexed hereto and forms part of this Report.
CONTRIBUTION TO REVENUE
Company has contributed the following amounts to the exchequer's
revenues during the year:
(Rs. in lakhs)
a) Excise Duty 787.60
b) VAT/CST 866.98
c) Octroi and Municipal Taxes 47.82
d) Income Tax 595.45
Total 2297.85
ACKNOWLEDGEMENT
The Directors wish to convey their appreciation for the total
commitment, dedication, hard work and enormous personal efforts as well
as collective contribution put in by every employee of your Company in
achieving the present performance of the Company.
The Directors would also like to thank the bankers, Central and State
Governments, local authorities, customers, distributors, suppliers and
all other business associates for the continuous and unstinted support
given by them to the Company and their confidence in its management.
The Directors are thankful to the esteemed shareholders for their
continued support and the confidence reposed in the Company and its
management.
On behalf of the Board of Directors
H.N. Taparia
Chairman &
Mumbai, 27th May, 2014 Managing Director
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