DIRECTORS REPORT TO THE MEMBERS Your Directors are pleased to present the Annual Report for the year 2008-09 on the business and operations of the Company together with Balance Sheet as at 31st March 2009 and Profit and Loss Account for the year ended on that date. During the year under review, the auto industry witnessed turbulent times, which affected the performance of automobile majors, and cheaper import of crankshafts from China. Your Company also suffered on account of decline in demand due to these factors. The Government of India also imposed dumping duty on cheap crankshafts import. The Government of India announced stimulus packages for revival of the industry and the demand for vehicles and auto components is reviving. FUTURE OUTLOOK AND PROSPECTS With the announcement of stimulus packages by the Government of India the automobile industry is showing signs of revival and outlook for the next couple of years remains positive. The new crankshafts machining line is likely to commence commercial production by January 2010, and shall improve the profitability of the Company. However, the availability and price of steel are the major cause of concern for the industry. DIRECTORS Your Directors deeply condole the demise of Mr. N.S. Parulekar and accordingly he has ceased to be a Director of the Company. Your Board places on record its appreciation of the services rendered by Mr. Parulekar during his association with the company. Mr. Anil Sharma, Mr. Sushil Nanda and Mr. N. Sinha, Directors retire by rotation and being eligible offer themselves for reelection. Mr. Deshbir Singh, Managing Director is proposed to be reappointed as Managing Director for a further period of 5 years with effect from 1st November 2009. AUDITORS AND AUDITORS' REPORT M/s. J.K. Arora & Co. Chartered Accountants hold office until the conclusion of the ensuing Annual General Meeting and have signified that they are eligible for re-appointment. The observations of the auditors have been explained by way of notes to accounts. PERSONNEL During the year, none of the employee was in receipt of remuneration as prescribed under section 217(2A) of the Companies Act, 1956. The industrial relations during the year remained cordial. DIRECTORS RESPONSIBILITY STATEMENT Our Directors' declare: 1. that in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures. 2. that the Directors had 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 at the end of the financial year and of the profit and loss of the company for that period. 3. that the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of Companies Act, 1956 for safeguarding the assets of the company and for preventing and detecting frauds and other irregularities. 4. that the directors had prepared the annual accounts on a going concern basis. ACKNOWLEDGEMENTS Your Directors" place on record the assistance extended by All India Financial Institutions, Banks, PICUP, the Central and State Government of Uttar Pradesh, and customers of the company. Your Directors are grateful to the shareholders for their continued support. For and on Behalf of the Board DESHBIR SINGH CHAIRMAN & MANAGING DIRECTOR Place: NOIDA Dated: 31.08.2009 |