NEPC INDIA LIMITED
ANNUAL REPORT 2011-2012
DIRECTOR`S REPORT
To
The Members of
NEPC INDIA LIMITED
Your Directors have pleasure in presenting the Twenty Third Annual Report
and Audited Accounts of your Company for the year ended 31st March, 2012.
FINANCIAL HIGHLIGHTS:
The Financial Results and the performance of the Company during the year
under review are as follows:
(Rs. in lakhs)
Particulars Year ended Year ended
31-03-2012 31-03-2011
Income from Operations 17.92 29.44
Other Income - -
Operating Expenses 180.65 153.68
Operating Profit/(loss) before Depreciation (162.73) (124.24)
Depreciation 69.55 83.04
Profit/(loss) before extra-ordinary items (232.29) (207.28)
Extra-ordinary items +/(-) 386.54 -
Provision for Taxation (Fringe Benefit Tax) - -
Profit (loss) after taxation (618.83) (207.28)
Balance Profit/(Loss) Brought Forward (26258.43) (26051.15)
Net Profit/(loss) carried to Balance Sheet (26877.26) (26258.43)
DIVIDEND:
The Directors do not recommend dividend for the year ended 31st March,
2012.
BUSINESS REVIEW:
Consequent to the process of transferring its wind energy division to M/s.
Southern Wind Farms Limited as per the slump sale agreement dated 16-01-
2006, the Company is presently engaged in the business of Solar Dual Power
Modules and related items.
DIRECTORATE:
Mr. Rakesh Gupta and Mr. S. Rajendran retire by rotation at the forthcoming
Annual General Meeting and being eligible offer themselves for re-
appointment to the Board.
AUDITORS:
M/s. A. Nageswarn, Chartered Accountant, retire at the conclusion of the
forthcoming Annual General Meeting. However, they are eligible for re-
appointment and have given their consent to act as the auditors of your
Company, if appointed. The Audit Committee and the Board recommends the re-
appointment of M/s. A. Nageswaran, Chartered Accountant, as the Auditors of
the Company.
REMARKS ON AUDITOR`S QUALIFICATIONS:
With regard to para 3(vi)(a) of Auditor`s report and point II-3 in Note-19,
the Company has already obtained confirmations from certain sundry
creditors and sundry debtors. The process of confirmation and
reconciliations in respect of other items such as sundry debtors,
loans/advances, certain bank balances, deposits and current liabilities is
on. However, it may be noted that after due reconciliation is over, the
assets and liabilities of your Company are not expected to result in any
material change, considering certain settlements already made.
With regard to para 3 (vi)(b) and point II-08 in Note-19 regarding AS28-
impairment of Assets, the Company is in the process of ascertaining the
losses on account of impairment of asset, if any, relating to the Airline
division and it is also considering the possibility of realizing some claim
arising out of these assets. Pending this ascertainment, the loss has not
been recognized in the current year.
With regard to para 3(vi)(c) of Auditor`s report and point 11-10 in Note-19
regarding non-provision of retirement benefits, since the number of
employees becoming eligible is low, the quantum of provision required is
expected to be marginal and will not vitiate the financial statements.
With regard to para 3(vi)(d) of Auditor`s report and point II-10 in Note-19
regarding non provision of Deferred Tax assets as stipulated in AS22-Taxes
on Income, the same has not been considered as the Company opines that
there will not be any such instance.
DIRECTORS RESPONSIBILITY:
In compliance with Section 217(2AA) of the Companies Act, 1956, the
Directors confirm that:-
- In the preparation of annual accounts the applicable Accounting Standards
have been followed, along with proper explanation wherever necessary.
- The Accounting Policies selected and applied on a consistent basis, give
a true and fair view of the affairs of the Company and of the loss for the
financial year;
- Proper and sufficient care has been taken for the maintenance of adequate
accounting records in accordance with the provisions of the aforesaid Act
for safeguarding the assets of the Company and for prevention and detection
of fraud and other irregularities;
- The Annual Accounts have been prepared on a going concern basis.
PARTICULARS OF EMPLOYEES:
No employee of the Company was paid remuneration in excess of limits
prescribed under section 217(2A) of the Companies Act, 1956, read with the
relevant Rules as amended.
FIXED DEPOSITS:
Your Company has not accepted any fixed deposits as defined under section
58AA, of the Companies Act, 1956, from the public during the year under
review.
INDUSTRIAL RELATIONS:
Your Company continues to maintain harmonious and cordial relations with
its workers.
CORPORATE GOVERNANCE:
A detailed report on this subject forms part of this Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
AND OUTGO:
The Statement pursuant to Section 217(1)(e) of the Companies Act 1956 read
with Companies (Disclosure of Particulars in the Report of the Board of
Directors) Rules 1988 is given in the annexure forming part of this Report.
Foreign Exchange Earnings and Outgo:
31-03-2012 31-03-2011
Earnings Nil Nil
Outgo - -
Traveling Expenses - -
Raw Material - -
Capital goods - -
Technical Expenses - -
Total - -
ACKNOWLEDGMENT:
Your Directors would like to place on record their appreciation and
gratitude to the Company`s members for their support and confidence. Your
Company is grateful for the co-operation and continued support extended by
the Central Government, State Governments, Banks, Government Bodies,
Departments, etc. The Directors also express their appreciation for the
support and contribution by the employees at all levels.
(By Order of the Board)
For NEPC India Limited
Place: Chennai Ravi Prakash Khemka
Date : 30-07-2012 Chairman
ANNEXURE TO THE DIRECTORS` REPORT:
FORM-A
(See Rule 2)
DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY:
31-03-2012 31-03-2011
A. Power and Fuel Consumption
1. Electricity
a) Purchased Unit (Nos)
Total amount (Rs.) - -
Rate/Unit (Rs.) - -
b) Own Generation
i) Through Diesel Generator Unit (Nos)
Units per Ltr. of diesel oil (Nos) - -
Cost/unit (Rs)
ii) Through Wind turbine/generator
Units (Nos) Nil Nil
Cost/unit (Rs) Nil Nil
Amount (Rs) Nil Nil
2. Coal (Specify quality and where used)
Quantity (tonnes) Nil Nil
Total cost (Rs. in thousands) Nil Nil
Average rate Nil Nil
3. Furnace Oil
Quantity (K. ltrs) Nil Nil
Total amount Nil Nil
Average rate Nil Nil
4. Others/internal generation
(please give details)
Quantity Nil Nil
Total cost Nil Nil
B. Consumption per unit of production
Products (with details) unit
Electricity Nil Nil
Furnace Nil Nil
Coal (Specify quality) Not applicable Not applicable
Others (Specify)
FORM - B
(FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO)
TECHNOLOGY ABSORPTION
(1) RESEARCH AND DEVELOPMENT (R&D):
Your Company was a pioneer in Wind energy development in the country and
achieved tremendous success in R&D activity related to wind energy machines
by way of import substitution, indigenization and new products development,
in the past.
(2) FUTURE PLAN OF ACTION:
Your Company has identified Solar power equipment and related items as
focus area of development, which involve Solar Cell/Fuel Cell, Inverters
and related components.
(3) EXPENDITURE ON RESEARCH AND DEVELOPMENT
a) Capital : Nil
b) Recurring : Nil
c) Total : Nil
d) Total Research & Development expenditure : Nil
as a percentage of total turnover
(By Order of the Board)
For NEPC India Limited
Place: Chennai Ravi Prakash Khemka
Date : 30-07-2012 Chairman
MANAGEMENT DISCUSSION AND ANALYSIS
BUSINESS:
Consequent to the process of transferring its wind energy division to M/s.
Southern Wind Farms Limited as per the slump sale agreement dated 16-01-
2006, the Company is presently engaged in manufacture and sale of ono-
conventional solar products.
TRENDS AND DEVELOPMENT:
The Company is focused on electricity generation through harnessing
renewable energy sources and is actively considering prospects and
proposals in the solar energy development.
BUSINESS REVIEW:
The global and European economic situation that prevailed during the year
2011-12 has affected the business and commerce generally all over the
world. The Company strived to maintain its operations inspite of
difficulties in working capital and tight money market position. The sale
of NEPC Solar Dual Power products and related items in the market place is
stabilizing and the Company is hopeful of improved performance in the
forthcoming years.
The Company is continuing its efforts to explore opportunity and identify
prospective investors towards solar energy proposals using photovoltaic
modules. The Company is also considering other renewable energy avenues so
as to give a fillip to the prospects of the Company. The members are well
aware of the depressing trends presently prevailing globally, particularly
in the American and European market place. The Company is hopeful of change
in the market place such that the solar energy proposals now being actively
considered would find acceptance from prospective investors.
HUMAN RESOURCE:
The Company has continued its focus on human resource management towards
performance. The policies and practices are periodically reviewed to enable
positive results.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The focus of internal control systems addresses the following:
- Operational efficiency
- Compliance with rules and regulations
- Accuracy and promptness in financial reporting
- Efficient utilisation of resource(s)
The internal audit system of the Company carries out checks and balances at
various operative levels and this is reviewed to increase its contribution.
The Audit Committee of the Board of Directors review the internal audit
proceeding and the adequacy of internal controls.
FINANCIAL PERFORMANCE:
(Rs. in lakhs)
Particulars Year ended Period ended Period ended
31-03-2012 31-03-2011 31-03-2010
(12 Months) (12 Months) (12 Months)
Income from Operation 17.92 29.44 101.90
Other Income - - 0.73
Operating Expenses 180.65 153.68 212.53
Operating Profit/(loss)
before Depreciation (162.73) (124.24) (109.90)
Depreciation 69.55 83.04 88.68
Profit/(loss) before
extra-ordinary items (232.29) (207.28) (198.58)
Extra-ordinary items +/(-) (386.54) - 95.17
Provision for Taxation
(Fringe Benefit Tax) - - -
Profit (loss) after taxation (618.83) (207.28) (103.41)
Balance Profit/(Loss)
Brought Forward (26258.43) (26051.15) (25947.74)
Net Profit/(loss) carried
to Balance Sheet (26877.26) (26258.43) (26051.15)
FUTURE OUTLOOK:
A developing India face situations of limited energy resources, especially
the provision of electricity i n rural areas, and there is an urgent need
to address this constraint to social and economic development. India faces
a significant gap between electricity demand and supply. Demand is
increasing at a very rapid rate compared to the supply. Non-Conventional
energy plays a critical role in the power sector today and the Company is
an active player in this source of energy.
The Company hopes to achieve fruition of its solar energy proposals and
become an active participant in the green energy sector and contribute to
solar energy development as a renewable source of power. |