| To The Members,
The Directors are forwarding herewith the Sixty Second Annual Report of
your Company together with the Audited Accounts for the year ended 31st
March, 2005.
FINANCIAL RESULTS:
Year ended Year ended
31.03.2005 31.03.2004
(Rs in Lacs) (Rs in Lacs)
Income (008) 412
Other Income 391 746
Total Income 383 1158
Total Expenditure 249 962
Operating Profit/(Loss) 134 196
Interest: Net 84 55
Gross Profit/(Loss) 50 141
Depreciation 23 43
Profit/(Loss) before Tax 27 98
Taxation for earlier years - 12
Net Profit/(Loss) 27 86
Balance brought forward from previous year (4624) (4710)
Profit/(Loss) carried to Balance Sheet (4597) (4624)
The Company has achieved a turnover of Rs. 22.38 Lacs during the
Financial Year 2004-2005 as against Rs. 481 Lacs in the previous year.
The Company reported a profit of Rs. 27 Lacs after Interest &
Depreciation during the year 2004-05, this is on account of sale of
fixed assets of the Company.
AUDITORS:
The Directors recommend re-appointment of M/s. JCR & Co., Chartered
Accountants, Mumbai as Auditors of the Company for the Financial Year
2005-06.
The Company has received certificate from them stating that their
appointment, if made, will be in accordance with the limits specified
in Section 224 (1B) of the Companies Act, 1956.
AUDIT COMMITTEE:
The Board of Directors of the Company has constituted an Audit
Committee, pursuant to Section 292 A of the Companies Act, 1956. This
committee has three Directors, Shri.L.J.Tanna, Shri.T.T.Tanna and Shri.
V.Ramamrutham. The committee meets as and when required.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO:
Information in accordance with the provisions of 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 regarding
conservation of energy, technology absorption and foreign exchange
earnings and outgo is given here below:
(A) CONSERVATION OF ENERGY:
(a) Energy Conservation measures taken:
Conservation of energy is given top priority by the Company. During the
year, the Company has taken following measures towards energy
conservation.
1. Organising the operating procedures in such a way that energy losses
are minimised by eliminating idle running. This has helped in reducing
Furnace Oil consumption and Energy per unit.
2. Modifying the processes so as to eliminate intermediate steps
bringing down per unit consumption of energy.
3. Optimisation of electrical load by matching motor power capacity to
the exact operational requirements.
(b) Proposals being implemented for reduction of consumption of energy:
1. Reduction in wastage of raw materials leading to lower consumption
of energy.
2. Development of products to meet new uses and users in domestic and
export market.
3. Development of products aimed at import substitution particularly in
automobile sector.
4. Introduction of ingredients to enhance environmental protection.
5. Modification of process so as to reduce the number of steps.
The above measures have been instrumental in bringing down the cost of
energy per unit of production in addition to improving quality.
(B) TECHNOLOGY ABSORPTION: (a) Specific areas in which R &D was carried
out by the Company
1. Efforts are directed towards producing products meeting
international standards by devising processes and introducing materials
to enhance quality.
2. As a result of these efforts, products developed to meet the
requirements of new customers resulting in import substitution and cost
reduction.
(b) Benefits derived as a result of above:
i) Product range widened to meet market requirements and to serve new
customers.
ii) Reduction in cost of new products.
iii) Improved quality and productivity.
(c) Technology Absorption, adaptation and innovation:
The Company has not improved any technology during the year.
(C) FOREIGN EXCHANGE EARNINGS AND OUTGO:
2004-2005 2003-2004
Rs Rs
Total Foreign Exchange earned Nil 3,67,755
Total Foreign Exchange used Nil 14,49,746
RESPONSIBILITY STATEMENT PURSUANT TO SECTION 217 (2A) & 217 (2AA) OF
THE COMPANIES ACT, 1956:
Section 217 (2A), No employee is paid remuneration above Rs. 24 Lacs
per year.
Section 217 (2AA) of the Companies Act, 1956, the Board of Directors
state that:
i. In the preparation of the Annual Accounts, the applicable Accounting
Standards have been followed except wherever otherwise disclosed.
ii. The Company has selected and applied such Accounting Policy
consistently and judgements and estimates are made in reasonable and
prudent manner so as to give true and fair view of the State of Affairs
of the Company as at the end of the financial year and profit of the
Company for that period,
iii. Proper and sufficient care has been taken for maintenance of
accounting records in accordance with the provisions of the Act for
safeguarding the assets of the Company and preventing/detecting fraud
and other irregularities,
iv. The annual accounts are prepared on a going concern basis.
HUMAN RESOURCES:
The Company is having qualified and trained employees who are
responsible to both customers needs and changing economic scenario.
Employees relations were cordial and work atmosphere was congenial
during the year.
ACKNOWLEDGEMENT:
The Directors place on record their appreciation for the co-operation
given by Bankers, Shareholders, Dealers, Valued Customers and the
Employees of the Company during the year under review.
For and on behalf of the Board
K.J.Tanna T.T.Tanna
Director Director
Mumbai,
July 20, 2005
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