| Disclosure in board of directors report explanatory DIRECTORS’ REPORT
Dear Members
Your Directors present the 32nd Annual Report of your Company together with the Audited Annual Accounts for the financial year ended 31st March, 2014.
Financial Highlights (Rs. In Lacs)
PARTICULARS Current Year ended Previous Year ended
31.3.2014 31.3.2013
Income from Operations and other income 8871.01 8950.56
Profit before depreciation and finance charges 1505.87 1537.58
Finance charges 843.93 864.66
Depreciation 519.67 538.15
Profit/(loss) before taxation 142.27 134.77
Provision for tax – Current Year
Income Tax 30.06 27.00
Profit/(loss) after tax 92.07 93.37
Profit transferred to Balance Sheet 92.07 93.87
During the year under review, the Company registered an income from operations equal to Rs. 8835.88 lacs as against Rs. 8918.96 lacs in 2012-2013. The Current year’s profit before tax and depreciation amounted to Rs. 661.93 lacs as compared to Rs. 672.92 lacs in the previous year. After providing for depreciation of Rs. 519.67 lacs (Previous year Rs.538.16 lacs) and provision for tax including deferred tax there is a net profit of Rs. 92.07 lacs (previous year Rs.93.87 lacs). Material Changes etc. save as mentioned elsewhere in this Report, no material changes and commitments affecting the financial position of the Company have occurred between the end of the financial year of the Company-31st March, 2014 and the date of this Report.
Dividend
Your Directors propose to plough back the profits earned this year into the Company with a view of increasing the future profitability of your Company. Therefore, your Directors regret their inability to recommend any dividend during this year.
Public Deposits
During the year under report, your Company did not accept any deposits from the public in terms of the provisions of section 58A of the Companies Act, 1956.
Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo
a. Conservation of Energy and Technology Absorption: Information as 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, regarding conservation of energy, technology absorption and foreign exchange earnings and outgo, is given in Annexure A , forming part of this report.
b. Export Activities: During the last year the Company has made export in various countries e.g., USA, Srilanka, Indonesia etc. Your Company is exploring other export market to increase its international presence.
c. Foreign Exchange Earnings and Outgo: Information as 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, regarding conservation of energy, technology absorption and foreign exchange earnings and outgo, is given in Annexure A , forming part of this report.
Particulars of Employees
During the financial year under review, none of the Company's employees was in receipt of remuneration as prescribed under section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975, and hence no particulars are required to be disclosed in this Report.
Quality
The company’s quality policy is to achieve the total customer’s satisfaction with the employee involvement and continuous improvement. As you may know, your company continues to enjoy the ISO / TS-16949-2002 accreditation.
Listing Fees
The shares of the Company are listed only on the Delhi Stock Exchange Ltd and the listing fees for the financial year 2014-15 have been paid.
Directors
Mr. Desh Deepak Gulhati, being director retire by rotation and who offers himself to be re-appointed as Director of the Company.
Auditors
M/s A Kay Mehra and Co., Chartered Accountants, Statutory Auditors of the Company hold office until the conclusion of the ensuing Annual General Meeting and being eligible offer themselves for re-appointment. A certificate under section 224(1) of the Companies Act, 1956 regarding their eligibility for the proposed re-appointment has been obtained from them. Your Directors recommend their re-appointment.
Auditors’ Report
Comments made by the Statutory Auditors in the Auditors’ Report are self-explanatory and do not require any further clarification.
Secretarial Compliance Certificate
In terms of the provisions of section 383A of the Companies Act, 1956 read with the Companies (Compliance Certificate) Rules, 2001, the Company has obtained the necessary Compliance Certificate from M/s MK Dukia and Associates, Company Secretaries. The Compliance Certificate is annexed herewith and forms part of this Report. Comments made in the Compliance Certificate are self-explanatory and do not require any further clarification.
Directors’ Responsibility Statement
In terms of the provisions of section 217(2AA) of the Companies Act, 1956, and to the best of their knowledge and belief and according to the information and explanations obtained by them and save as mentioned elsewhere in this Report, the attached Annual Accounts and the Auditors’
Report thereon, your Directors confirm that:
a. in preparation of the annual accounts, the applicable accounting standards have been followed;
b. the Directors have 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 as at 31st March, 2014 and of the profit of the Company for the year ended on that date;
c. the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; and
d. the Directors have prepared the Annual Accounts on a going concern basis. Corporate Governance Presently, Clause 49 of the Listing Agreement relating to the Corporate Governance is not applicable to the Company during the financial year under review. However, the Company observes good corporate practices to enhance the stakeholders’ value.
Acknowledgment
Your Directors take this opportunity to place on record their sincere appreciation for the co-operation and assistance the Company has received from Banks and various Government Departments. The Board also places on record its appreciation of the devoted services of the employees; support and co-operation extended by the valued business associates and the continuous patronage of the customers of the Company.
For and on Behalf of the Board
For LOGWELL FORGE Ltd
Date: 26th August 2014
Vikas Chowdhry
Place: New Delhi Chairman and Managing Director
Din: 00569353
REGISTERED OFFICE:
E-78 greater Kailash-I,
Delhi, Delhi-110048
India
CIN: L74899DL1982PLC013747
Telephone no.:0124 4518000
Email: logwell@logwell.biz
Website:www.logwell.biz
I. CONSERVATION OF ENERGY
a) Energy conservation measures taken;
i) Change in the Design of Heating Equipments.
ii) Conducting regular training programme to educate the supervisors for proper and efficient functioning of the machines. .
iii) Reducing dependence on the artificial lighting by improving natural light.
By adopting the above measures, we have been able to reduce the energy consumption.
Total energy consumption and energy consumption per unit of production is given below:
Particulars Current Year Previous Year
Product Unit (Pcs.) (Forgings/ERC) 15848710 15671052
1. Electricity
a) Purchased Units (KWH) 6983104 5409942
Total Amount (Rs) 55795006 37325151
Rate/Unit (Rs) 7.99 6.90
b) Own Generation through Diesel Gen set units(KWH) 756218 1867453
Unit per Ltrs of Diesel Oil 3.33 kwh/ltr 3.20 wh/ltr
Cost/Unit (Rs.) 14.30/ ltr 12.40/ ltr
2. Furnace Oil
a) Quantity (Ltrs) 802073 655687
Total Amount(Rs) 32771697 27352864
Average Rate/ltr(Rs) 40.85 Rs.41.71
b) Consumption per unit of production
1. Electricity 0.44 kw/unit 0.46 kw/unit
2. Furnace Oil 0.05 ltrs/unit 0.04 ltrs/unit
II. TECHNOLOGY ABSORPTION
Efforts made in technology absorption as per Form B – N.A.
I. FOREIGN EXCHANGE EARNINGS AND OUTGO DURING THE YEAR
a) Earnings
i) Exports (F.O.B.) Rs. 588.87 lacs (previous years.168.72 lacs)
ii) Others: Rs. Nil (previous year Rs.Nil)
b) Outgo
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Logwell Forge Limited Standalone Balance Sheet for period 01/04/2012 to 31/03/2013
i) Expenses Rs. 3.55 lacs (previous year Rs. 1.44 lacs)
ii) Capital goods (C.I.F.) Rs. Nil ( previous year Rs.Nil)
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