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To,The Members,
The Directors have pleasure in presenting their 16th Annual Report and
Audited Accounts for the year ended 31st March, 2004.
FINANCIAL HIGHLIGHTS (Rs. In. Lacs)
2003-04 2002-03
Gross Sales/Income 5.31 8.48
Profit/(Loss) before interest/Depreciation & (69.40) (5.56)
Extraordinary item
Add Interest 40.33 33.30
Profit/(Loss) before Depreciation & (109.73) (38.86)
Extraordinary item
Less Depreciation 15.45 15.45
Profit/(Loss) before extraordinary item (125.18) (54.31)
Less : Extraordinary item 4.16 32.42
(Payment against W/back Balance - -
Less : Provision for Doubtful
Net Current Assets - -
Net Profit/(Loss) for the Year (121.02) (21.89)
OPERATIONS
The Directors are putting their efforts to revive the unit. The
Management of the company is planning for diversification and therefore
they are in the process of approaching in the market to get a suitable
proposal which may help to start the production again. The operations
of the company is temporarily suspended for want of working capital.
DIVIDEND
In view of the accumulated losses the directors are unable to recommend
any dividend for the year.
FIXED DEPOSITS
The company has not accepted any deposits within the meaning of section
58A of the Companies Act, 1956 from the public.
AUDITORS
M/s. H. N. Motiwalla & Co. Chartered Accountants retire at the
conclusion of the ensuing Annual General Meeting and are eligible for
reappointment. Your Directors recommend to share-holders for the
appointment of M/s. H. N. Motiwalla & Co. Chartered Accountants as
Auditors of the company for the year 2004-2005.
PARTICULARS OF EMPLOYEES
The company has no employees in respect of whom information under
sub-section 2A of section 217 of the companies Act, 1956 is required to
be furnished.
AUDITORS' REMARK
Our comments on the following items mentioned below:
i. The directors are taking steps to appoint a firm of Chartered
Accountant as internal auditor.
ii. The Company was unable to deposit the amount of Provident fund and
ESIC with the appropriate authorities in time due to severe liquidity
crunch. These liabilities has since been paid off.
iii. The Directors are hopeful of obtaining waiver of interest from the
Income Tax Authorities with whom request for waiver of interest is
pending.
iv. The Directors are taking steps to strengthen the internal control
procedures to match the level of operations.
v. Other comments on the other Auditors Remarks are self explanatory.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2AA) of the Companies Act, 1956 the Directors
state that
(i) In the preparation of the annual accounts, the applicable
accounting standards had been followed alongwith the proper explanation
relating to material departures;
(ii) 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 or
loss of the company for that period;
(iii) The Directors had taken proper and sufficient care for the
maintenance of adequate accounting 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;
(iv) The Directors had prepared the annual accounts on a going concern
basis.
CONSERVATION OF ENERGY & TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Information pursuant o 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 is not given as the same is not applicable for
the year under review.
APPRECIATION
The Directors wish to place on record their appreciation of whole
hearted co-operation and support from Share-holders, Punjab National
Bank, Maharashtra State Financial Corporation, employees, and various
government Agencies.
For & on Behalf of the Board of Directors
RAJENDRA V. SHAH
Chairman
PLACE : Mumbai
DATE : November 3, 2004 |
