Harvic Management Services India Ltd Directors Report

HARVIC MANAGEMENT SERVICES (INDIA) LIMITED ANNUAL REPORT 2006-2007 DIRECTORS REPORT To, The Members, HARVIC MANAGEMENT SERVICES (INDIA) LIMITED Your Directors have great pleasure in presenting 14TH ANNUAL REPORT along with the Audited Balance Sheet and Profit And Loss Account, for the year ended 31st March, 2007. 1. FINANCIAL RESULTS: The financial Results are briefly indicated below: (Amt. In Rs.) YEAR ENDED Particulars 2006-07 2005-06 Total Income 6,26,333 3,24,438 Depreciation 2,10,835 2,23,212 Profit/(Loss) before Taxation 40,616 (562,491) Provision for Taxation - - Less : Provision for Fringe Benefit Tax 9,471 17,796 Less : Deferred tax expenses 3,72,141 1,82,919 Profit/(Loss) after Tax, (3,40,996) (763,206) Balance of Profit brought forward (10,98,285) (335,079) Amount available for appropriations - Transfer to: - General reserve - - Proposed Dividend - - Balance carried to Balance-Sheet (14,39,281) (10,98,285) 2. FUTURE OUTLOOK: The Companys main operation remains to be investments in shares and securities. The Directors are very selective in making investment decisions and in view of robust growth of Indian Capital Market, the Directors foresee handsome returns on the investments made by the Company. 3. DIVIDEND: In the absence of sufficient profits, the Board as such recommends no dividend. 4. FIXED DEPOSITS: Your company has not accepted. any fixed deposits within the meaning of Section 58-A of the Companies Act, 1956 and the rules framed there under. 5. SUBSIDIARIES: Since the Company has no subsidiaries, provision of section 212 of the Companies Act, 1956. 6. DIRECTORS: During the year Shri. Kalpesh Shah is retiring by rotation & being eligible offers himself for re-appointment. Shri. Hemang Jangal was re-appointed as an Executive Director w.e.f. 1st July, 2007. 7. DIRECTORS RESPONSIBILITY STATEMENT: The Board of Directors hereby confirm : i. That in the preparation of the Annual Accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures. ii. That 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 at the end of the financial year and of the financial year and of the Profit or Loss of the Company for that period. iii. That the Directors have taken proper and sufficient care for the maintenances of adequate accounting records in accordance with the provision of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. iv. That the Directors have prepared the Annual accounts on a going concern basis. 8. CORPORATE GOVERNANCE CODE: The Board had implemented Corporate Governance Code in pursuance of clause 49 of Listing Agreement during the year. The report on Corporate Governance is annexed hereto forming part of this report. The requisite certificate from statutory Auditors, on implementation of requirements of the Corporate Governance is also annexed herewith forming part of this report. 9. AUDITORS: M/s. Shah Jain & Associates, Chartered Accountants, Mumbai Statutory Auditors of your company holds office until the conclusion of the forthcoming Annual General Meeting. He has signified his willingness to accept re-appointment and has further confirmed his eligibility under Section 224 (1B) of the Companies Act, 1956. 10. AUDITORS REPORT: The notes to the accounts are self explanatory and hence no explanation is required from the Board as such. 11. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION: Since the company is a service provider, the details of energy conservation & Technology absorption are not applicable. 12. PARTICULARS OF EMPLOYEES: In accordance with the provision of section 217 of the Companies Act, 1956, read with the Companies (Particulars of Employees) Amendment Rules 1999 as amended up to date, there were no employees during the whole or part of the year who were in receipt of remuneration in excess of limits as mentioned in the section and hence no details are given as such. 13. ACKNOWLDEGEMENT; Your Directors wish to take this opportunity to thank the shareholders Bankers for their co-operation and support extended to the company. BY ORDER OF THE BOARD HARVIC MANAGEMENT SERVICES (INDIA) LIMITED DATE : 30th June, 2007 Sd/- PLACE : Mumbai HEMANG JANGLA (CHAIRMAN) MANAGEMENT DISCUSSION AND ANALYSIS A) INDUSTRY STRUCTURE AND DEVELOPMENT As members are aware the Companys main business is of investments in shares & securities. The said business is totally relied on capital market scenario. The said Industry is unpredictable & volatile in nature. Your Directors are taking maximum efforts to safeguard funds of the Company while making investments. 8) SEGMENTWISE PERFORMANCE: Your Company have only one segment. C) OPPORTUNITIES / OUTLOOK: Due to favorable International Economic Scenario, your Directors foresee a bright outlook to your company in the Coming years. D) THREATS The major threats to Investment sector will be economic policies and political stability. E) RISKS AND CONCERNS: Your Directors are taking optimum measures to safeguard against risk & other calamities. F) INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY: The Company has adequate internal control system. G) HUMAN RESOURCES POLICIES: The Company had strong belief in Human Resources & accordingly policies are drawn from time to time. H) CAUTIONARY STATEMENT: Your Board has taken abundant precaution in selecting Insurance broking Business.