| Dear Members'
The directors have pleasure in presenting their 43rd Annual Report on
the business and operations of the Company together with the Audited
Statement of Accounts for the year ended 31st March, 2015.
Financial Highlights (Standalone)
During the year under review, performance of your Company as under:
(Rupees in Lakhs)
Particular Year ended Year ended
31st March 2015 31st March 2014
Turnover 250.56 1183.18
Profit/(Loss) before taxation (227.06) 191.69
Less: Tax Expense
a) Current Tax - 9.20
b) Excess/Short Provisions of
tax 0.20 -
c) Deferred tax Liability /
(Assets) (4.33) 1.42
d) Provision for wealth tax 0.28 -
Profit/(Loss) after tax (223.21) 181.07
Add: Balance B/F from the previous
year 1833.42 1699.91
Appropriations:
Proposed Dividend - 40.92
Tax on Dividend 0.31 6.64
Transfer to General Reserve - -
Balance Profit / (Loss) C/F to
the next year 1609.90 1833.42
The Company had made provision of Rs. 238.00 Lacs of diminution in
value of investment made with Light Work LLC an overseas Company on
account of diminution in the book value of the Share of Light Work LLC.
The Company has also written off the advances of Rs. 45.00 Lacs in
relation to advances given to one party. This has resulted into the
loss of Rs. 223.21 Lacs during the year.
However, there is continuity in the profit of the Company from its
operational activities. The diminution in the value of overseas
investment is subject to necessary approval from the concerned
authorities.
State of Company's Affairs and Future Outlook:
The income of the Company during the year was Rs. 4.17 Crores in
comparison of Rs. 13.89 Crore in the previous year. The profitability
of the Company from operational activities has decreased by 66.84%
during the Financial Year 2014-2015. The Company continues the trading
of Hot Rolled (Non-Alloy) Mild Steel Window sections and Angles. Major
trading activities are relating to export in overseas market. The
management is hopeful to enhance the trading activities in still better
coming years.
The Company continues to be partner of LLPs. The operational activity
has commenced and the management is confident in achieving higher
amount of profits in current and upcoming years.
In view of the same, the management is of the opinion that:
1. Real estate as an attractive investment option
2. Improved real estate transparency levels
3. Wider option to choose from.
4. Availability of high-quality residential formats.
5. Competitive home loan rates.
6. Flexible home loan financing-EMI holiday by developers.
7. Increased NRI buyer interests
And exactly for such reasons residential offerings have evolved to
accommodate concepts of themed projects, designer homes, green homes
etc. Today people want to live, work, play entertain, be entertained,
flaunt, relax, rejuvenate, study, exercise when it comes to 'where'
they stay. In order to bring the construction quality at par with the
global standards, developer have introduced contemporary technologies
such as Mivan and PERT to their construction. The advanced technologies
have not only reduced the cost of construction, but also brought down
construction turnaround time significantly in the recent past. There
has been greater awareness about green building construction in the
last decade. All these above factors will not only improve the
performance of Company but will consequently help in increasing the net
worth of Stakeholders. However the Management is concerned about the
increase in Service Tax apart, from this the prices of raw
material;cement etc. may affect the margin of the Company.
Dividend:
Due to Loss during the year no Dividend is recommended by the Board for
the Financial Year ended on 31st March, 2015.
Amounts Transferred to Reserves:
No amount is transferred to General Reserve due to non recommendation
of Dividend and Loss.
Extract of Annual Return:
The extract of Annual Return, in format MGT -9, for the Financial Year
2014-15 has been enclosed with this report as Annexure -1 Details of
Subsidiaries Companies, Associate Company & LLP/Partnership
Sr. Name of Company Nature of No. of Share hold/
No. Relationship Capital Contribution
1. Light Works LLC Associate Company 4,87,847
2. Endor Properties LLP Partner Rs. 1,026,720
3. Tesla Properties LLP Partner Rs. 8,14,24,169
4. View Port Properties LLP Partner Rs. 2,50,37,864
5. Aavkar Projects Partner Rs. 2,05,731
6. Aavkar Realty Partner Rs. 3,26,74,872
*There is no Subsidiary of Company hence no such information is
provided
Number of Board Meetings:
During the Financial Year 2014-15, meetings of the Board of Directors
of the Company were held.
Sr. Date of No. of Director Present in the Meeting
No. Board Meeting
1. 27-05-2014 Eight Director were Present out of Nine Directors.
2. 29-07-2014 All Nine Director Were Present
3. 07-11-2014 Eight Director were Present out of Nine Directors.
4. 22-01-2015 Eight Director were Present out of Nine Directors.
5. 31-03-2015 All Nine Director Were Present
Particulars of Loan, Guarantees and Investments under Section 186:
The loans advances given to Light Works LLC Mongolia has been provided
to meet the working capital requirement of the Company in the financial
year 2008-09.The Company is regularly receiving the repayment of loan.
During the financial year 2014-15, the Company has not given any loan
to any other Company including Associate Concern.
The investment in other securities is within the authority given to the
Board by the shareholders under Section 372A of the Companies Act,
1956/Section 186 of the Companies Act, 2013
Particulars of Contracts or Arrangements with Related Parties:
All the transactions are at Arm's length. Remuneration paid to the
Working Directors i.e. Managing Directors & Executive Directors is in
respect of their time involvement in development of Company. Other
transactions are in the form of capital contribution. The
dividend/Profit earned from this associate are tax free in the hands of
Company.
Explanation to Auditor's Remarks:
The remarks made by the Auditors in their Report have been suitably
dealt with in the schedules and notes and therefore, do not call for
any further clarification.
Conservation of Energy, Technology, Absorption, Foreign Exchange
Earnings and Outgo:
The details of Energy, Technology, Absorption, Foreign Exchange
Earnings and Outgo are as under:
A. Conservation of Energy: Particulars with respect to Conversation of
Energy are not applicable as the Company has not done any manufacturing
activities.
B. (1) Research and Development : Not Applicable
(2) Technology absorption : Not Applicable
C . Foreign Exchange earnings and outgo:
(1) Activities relating the export : Company exports steel
related items.
(2) Foreign Exchange earned : 1,80,41,765
(3) Foreign Exchange used : Nil
Acknowledgment
The Directors express their sincere appreciation to the valued
shareholders, bankers and clients for their support.
For and on behalf of the Board of Directors
Shri Anand V. Shah Shri Darshan A. Jhaveri
Place : Ahmedabad (DIN: 00017452) (DIN: 00489773)
Date : 28th May, 2015. Managing Director Managing Director |