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Directors Report
Lykis Ltd Tea
BSE Code
530689
ISIN Demat
INE624M01014
Book Value
13.86
NSE Symbol
N.A
Div & Yield %
0.00
Market Cap (Rs. Cr.)
20.46
P/E
0.00
EPS
0
Face Value
10



DIRECTORS





To

The Members,

Your Director has pleasure in submitting 27th Annual Report together with Audited statement of Account for the period (12 months) ended on 30th, September 2011.

OPERATIONS OF THE COMPANY :

The details of operating results for the year are furnsihed below :

(Rupees in lacs)

Financial Results 30.09.2011 30.09.2010
Gross Sales 239.84 182.01
lncrease/(Decrease) in Stock 48.05 19.83
Other Income 48.07 82.34
Gross Income 335.96 284.18
Less : Total Expenditure 225.09 174.67
Profit (Loss) Before Depreciation and Tax 43.15 69.85
Less : Depreciation 11.64 13.92
Profit (Loss) After Depreciation Before Tax 31.51 55.93
Less : Interest 12.55 25.13
Profit (Loss) After Depreciation, Int Before Tax 18.96 30.80
Less : Provision For Tax & FBT
Profit (Loss) After Tax 18.96 30.80
Balance carried forward from previous year (59.38) (91.91)
(40.42) (61.11)
Revaluation reserve written back 1.39 1.73
Amount Carried to Balance Sheet (39.03) (59.38)

PERFORMANCE: i During the Year, the company has taken efficient measures to control its costs and increase its sales and that has helped the Company to remain in Profits. The management also decided to diversify and expand the business of the company through F.M.C.G. business and include Food, Pharma and Cosmetics along with Tea in the main line of its Business.

DIVIDEND :

In view of the losses incurred in earlier years and requirement of funds, your Directors regret their inability to recommend any dividend.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to the provisions fo sub-section (2AA) of Section 217 of the Companies Act, 1956, your Directors confirm :

i That the preparation of the Annual Accounts, the applicable accounting Standards had been followed along with proper explanation, relating to material departures;

ii. 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 financial period as on 30th, September 2011 and of the profit of the company for that period;

iii. That the directors had taken proper and sufficient care for the maintenance of adequate account records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities; and iv) that the Directors had prepared the annual accounts on a going concern basis.

STATUTORY REQUIREMENTS

A) As per provision of section 217(2A) of the companies Act, 1956 the statement of particulars of the employees, etc forms part of this report. However, as per the provisions of section 219 (1) (b)(iv) of companies Act 1956, the Annual Report excluding the above said information is being sent to all the members and other entitled persons. Any member interested in being sent to all the members and other entitled persons. Any member interested in obtaining such particulars may write to the company Secretary at the registered office of the company.

B) A statement showing particulars of fhe conservation of energy etc. as are required under Sec (1) (e) of the Companies Act, 1956 read with the Companies' (disclosures of Particulars in the Report of Board of Directors) Rules, 1988 is annexed herewith.

CORPORATE GOVERNANCEAND COMPLIANCE CERTIFICATE :

A separate report on Corporate Governance is enclosed as a part of this Annual Report. A certificate from the Auditor regarding compliance with Corporate Governance norms stipulated in clause 49 of the Listing Agreement is annexed to the Report on Corporate Governance.

LISTING STATUS :

The securities of our company are listed at Bombay Stock Exchange Ltd, Mumbai. Trading in company's securities resumed on 29th November, 2011. The ISIN of equity shares of our company is

INE624M01014.Our Script Code in Bombay Stock Exchange is 530689. The equity shares of the company are admitted both in National Securities Depository Limited and in Central Depository Services (India) Limited.

PARTICULARS OF THE EMPLOYEES:

None of the employees employed during the year was in receipt of remuneration in excess of the Prescribed limit specified in section 217 (2A) of the Companies Act, 1956 Hence, furnishing of particulars under the Companies Act (Particulars of Employees) 1975 does not arise.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The domestic consumption is increasing every year and exports are likely to improve further. Further this year has started again with lower carry forward stock. The above factors augur well for a steady tea market. Continuous extension programme is being implemented in the large vacant area of land available n i our tea estate for three consecutive years will add up much more to the production of made tea and total development of the company. Based on these positive factors, we can take an optimistic view for the industry. The management also decided to diversify and expand the business of the company through F.M.C.G. business and include Food, Pharma and Cosmetics along with Tea in the main line of its Business.

AUDITORS :

The Auditors Report and the Notes on Accounts being self-explanatory are not dealt with separately. The Auditors of the company M/s. Sanjay P. Agarwal & Associates, Chartered Accountant retires and being eligible offer themselves for re-appointment.

DIRECTORS :

To appoint a director in place of Mr. Prince Tulsian, who retires his by rotation and being eligible offers himself for re-appointment.

ACKNOWLEDGMENT :

The Directors wish to place on record their sincere thanks to the officials of concerned Govt. Departments Statutory Authorities, banks and other Institutions for their co-operation and assistance. The Directors also wish to express their sincere thanks to the shareholders and the investing public who have placed due trust on the company and the Staff and Employees for rendering loyal and efficient services to the company.

For and on Order of the Board
Place : Kolkata Prince Tulsian
Dated : 28th January, 2012 Managing Director

ANNEXURE TO THE DIRECTORS REPORT:

Particular of conservation of energy and technology absorption in terms of Section 217 (1)(e) of the Companies Act, 1956read with the Companies (Disclosure of particulars in the Report of Board of Directors) Rules 1988 forming part of the Directors' Report for the period ended 30th September 2011.

A. CONSERVATION OF ENERGY :

(a) Energy conservation measures taken : Constant monitoring of power factor.

(b) Additional Investment proposals, if any being implemented for Reduction of consumption of energy : Fuel inefficient engines will be phased out.

(c) Impact of measures at (a) & (b) above for reduction of energy consumption and consequent impact on the Cost of Production of goods Benefits have accrued at tea factory of the Company.

(d) Total energy consumption per unit of production.

FORM - A

FORM DISCLOSURE OF PARTICULARSWITH RESPECT OF CONSERVATIONOF ENERGY :

Power and Fuel Consumption :

Current Period Previous Period
(12 months) (15 months)
1. Electricity : (12 months)
(a) Purchased Unit 147744.00 127912.00
Total Amount(Rs.) 1160739.00 1158607.00
Rate/Unit 7.85 9.05
(b) Own Generation
(i) Through Diesels Generator Unit 1120129.38 904166.28
Unit per Ltr. of Diesel Oil 27937 25504
Cost/Unit, 40.09 35.45
(ii) Through Steam Not Applicable
Turbine/Generator Unit
(iii)Unit per Ltr.of Fuel
Oil/Gas
Cost/Unit
2. Coal (Consumed at garden)
Qty.(MT) 378.101 325.191
Total Cost (Rs.) 1685768.13 1278350.73
Avg. Rate (Rs.) 4458.51 3931.07
3. Furnace Oil 36862.69 21164.27
Qty. (K. Ltrs.) 172.900 136.550
Avg. Rate 213.20 154.99
4. Other/lnternalgeneration

B. CONSUMPTION PER UNIT PRODUCTION :

Standard Current Period Previous Year
(If any) (12 months) (15 months)
Production with details Unit NIL 269429 201677
Electricity NIL 4.30 3.15
Furnace Oil NIL 7.30 9.53
Coal (Mixture) NIL 6.25 6.33
Other (Specify) NIL NIL NIL

FORM - B

FORM DISCLOSURE OF PARTICULARS WITH RESPECT TO TECHNOLOGY ABSORBTION ADAPTION AND INNOVATION, RESEARCH AND DEVELOPMENT (R & D)

RESEARCH AND DEVELPMENT (R & D)

1. Specific Areas in which A & B carried out by the Company.

The main concentration of R & D activity was in the field of plantation. Trials were carried out on purning cycle, growth regulators, optimum use of fertilizers and manures, some agro chemical were applied.

2. Benefit derived as a result of above R & D.

The findings helped to improve tea husbandry for sustained high cropping in years to come.

3. Future Plan of action :

Long terms trials will be continued to solve some problem and fresh field will be introduced for short term, medium term gains.

4. Expenditure on R & D :

Current Year Previous Year
(A) Capital 1,07,969.00 97,025.00
(B) Recurring 10,764.00 14,721.00
(C) Percentage of R & D expenditure on turnover 00.065 00.08

TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION :

1. Efforts in brief made towards technology absorption and (novation improvement were brought out i in the manufacturing process by bringing in new generation machines and better processing ' conditions. i

2. Benefits derived as a result of above efforts e.g. product improvement, cost reduction product development etc. Standardization of product and field practices to a large extent

3. Imported Technoloy NI L NIL

 

C. FOREIGN EXCHANGE EARNINGS AND OUTGO : Current Yr. Previous Yr
Foreign Exchange outgo NIL NIL
Foreign Exchange earned NIL NIL

 

For and on Order of the Board
Place : Kolkata Prince Tulsian
Dated : 28th January, 2012 Managing Director

 

   
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