| The Directors have pleasure in presenting the Twentyfirst Annual
Report and Audited Statement of Accounts for the Year ended 31st March
2008.
FINANCIAL HIGHLIGHTS:
(Rs. In lacs)
2007-2008 2006-2007
Sales and other Income 0.95 1.45
Add: Extraordinary Exceptional
items Nil 1067.73
Profit/(Loss) before depreciation
and tax (64.20) 1055.62
Less/(Add): Depreciation 19.58 32.40
ProfiV(Loss) before tax (83.78) 1023.22
Less/(Add): Tax Adjustments 0.00 0.00
Net Profit/(Loss) after tax (83.78) 1023.22
OPERATIONS:
Due to continuous recession in textile industry, shortage of working
capital, the manufacturing operation of both the units of the company
continued to be suspended during the year also. The turnover and other
income recorded Rs. 0.95 lacs as compared to earlier year Rs. 1.45
lacs. During the year, the company has incurred loss of Rs.64.20 lacs
before depreciation and tax and net loss of Rs. 83.78 lacs. During the
previous year, the company has paid off entire OTS amounts to Bank of
Baroda & IDBI and the relief amounting to Rs.1067.73 lacs received by
the company on OTS in interest and principle has been credited to
profit and loss account as an extraordinary exceptional item.
DIVIDEND:
In view of loss for the year, your directors regret their inability to
recommend payment of any dividend for the year.
DIRECTORS
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company Shri Pradeep Poddar retires by
rotation and being eligible offer himself for re-appointment.
REFERENCE TO BIFR
As reported last year, the companys net worth as per the audited
accounts as at 31st March 1999 stood fully eroded and accordingly a
mandatory reference was made to BIFR under section 15 of the Sick
Industrial Companies (Special Provisions), 1985 on 01/10/1999 which is
duly registered on 13.10.1999 under case no. 330/99. BIFR appointed
IDBI as an Operating Agency for getting the special investigative
report for last three financial years. The auditors appointed by IDBI
submitted the special investigative report in May 2000. The company
was declared sick industrial company by the BIFR in terms of section
3(1)(o) of the Act. The Bench further directed to explore the
possibility of change of management but no concrete offer was received
for the same.
Therefore in view of explored and exhausted all possibilities to
rehabilitate the company, the Bench formed a prima facile opinion, vide
its order issued on 11th August 2003, that the company is not likely to
make its net worth exceed its accumulated losses within a reasonable
time while meeting all its due financial obligations, hence not likely
to become viable on long- term basis. Therefore the BIFR formed, an
opinion, on prima-facie, that it is just and equitable and in public
interest that it is wound up u/s 20(1) of the Act and send the matter
to the concerned High Court. In the meantime, since the company has
reached OTS with Bank of Baroda and IDBI, the proceedings of the DRT
and winding up have been suspended. The company sold substantial part
of its fixed assets of both the units with a view to pay off entire OTS
amounts to IDBI and Bank of Baroda. The company has paid the dues of
such secured creditors and received no dues certificates from Bank
of Baroda, SICOM and -IDBI.
LISTING
The equity shares of the company are listed on Mumbai, Delhi, Madras
and Ahemdabad Stock Exchanges. The annual listing fees have been paid
till 1997-98.
INSURANCE
Due to continuous financial difficulties only, the company could not
get insured its assets and properties.
FIXED DEPOSITS
During an earlier year the company has accepted fixed deposits from a
relative of the directors. Out of such deposit an amount of Rs.
200000/- are still to be paid however the company is regular in payment
of interest. During the year under review, due to payment of OTS, the
company had also to take interest free deposit from a firm in which
relatives of the directors are partners.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2AA) of the Companies Act, 1956 with respect
to Directors responsibility statement, it is hereby confirmed:
i) That the preparation of accounts for the financial year ended 31st
March 2007, 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 were
reasonable and prudent so as to give true and fair view of the state of
affairs of the company at the end of the financial year and the profit
or loss of the company for the year under review.
iii) That the Directors have 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) That the Directors have prepared the accounts for the financial
year ended 31st March 2007 on a going concern basis.
CONVERSATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS OUTGO:
Since the company has no manufacturing operations, there are no
particulars to be furnished with regard to conservation of energy and
technology absorption pursuant to section 217(i) (e) of the Companies
Act, 1956, read with the Companies (Disclosure of particulars in the
Report of Board of Directors) Rules 1988.The foreign exchange earnings
and outgo were Nil.
PARTICULARS OF EMPLOYEES:
Particulars of employees under section 217(2A) of the Companies Act,
1956 read with the Companies (Particulars of Employees) Rule 1975 are
not-attached with this report as no employee comes under the purview of
these provisions.
AUDITORS:
M/s. R. S. Agrawal & Associates, Chartered Accountants, the Auditors of
the Company are retiring at the forthcoming Annual General Meeting. The
members are requested to appoint the auditors.
AUDITORS REPORT:
The Auditors report is self-explanatory and hence do not require any
clarification.
APPRECIATION:
The Board of Directors place on record their appreciation for the
support and co-operation received from the Government, Bankers, IDBI,
SICOM, Dealers, Suppliers, Employees and you the shareholders.
By Order of the Board
For ADHUNIK YARNS LIMITED
RADHESHYAM PODDAR
CHAIRMAN
Mumbai, 11th August 2008. | 