| The Directors present their 72nd Annual Report together with the
audited accounts of the Company for the year ended 31st March, 2008.
FINANCIAL RESULTS:
Year ended Year ended
31.3.2008 31.3.2007
(Rs.in lacs)
Profit / (Loss) for the year
before Depreciation and Interest 15377.05 305.61
Less: Interest 496.75 2178.31
Depreciation 116.82 129.76
14763.48 (2002.46)
Less: Provision for Taxation - -
Fringe Benefit tax 1.26 1.60
Deferred tax 42.29 (414.71)
Net Profit/(Loss) 14719.93 (1589.35)
Add: Prior Year Income 0.47 11.12
Debenture Redemption
Reserve 37.50 -
Less: Amount brought forward
from Previous year (15455.57) (13877.34)
Balance in Profit and
Loss Account (697.67) (15455.57)
DIVIDEND
The Board of Directors regret their inability to recommend dividend on
Equity Shares for the financial year ended 31.3.2008 in view of loss
suffered by the Company.
MANAGERIAL DISCUSSION AND ANALYSIS
A INDUSTRY STRUCTURE AND DEVELOPMENTS
Textile industry can be broadly classified as Spinning, Weaving,
Knitting and Processing. Spinning industry has relatively modernised
in India, compared to Weaving and Processing and internationally
competitive. Government is making efforts to modernize Weaving and
Processing industry through various measures to make it internationally
competitive.
B. SWOT ANALYSIS FOR THE COMPANY
Report under this head is not feasible for the reasons mentioned in the
future outlook.
C. PRODUCT WISE PERFORMANCE
Yarn: Yarn sales were less by 33.37% due to the spinning units were
mainly doing job work.
Fabrics: Fabrics sales increased by 2.68%.
D. OUTLOOK
With the Strategic Investor Silverstar Communication Ltd bringing in
funds to settle the OTS of all the secured lenders, the net worth of
the company turned positive and BIFR in their hearing dated 30.10.2007,
declared that the company as out of the purview of BIFR.
The company passed a resolution by Postal Ballot for disposal/lease of
whole or substantially whole of the undertaking on 23.1.2008.
Accordingly, the company has disposed of the machineries in Coimbatore
after closing down the operation in January 2008.
With power shortage, the units at Sivaganga and Thirumangalam could not
be operated to its full capacity.
E INTERNAL CONTROL SYSTEMS
The Company has clearly laid down policies, guidelines and procedures
that form part of the internal control system which provide for
automatic checks and balances. The internal auditor reviews the
effectiveness and efficiency of these systems to ensure that all assets
are protected against loss and that the financial and operational
information is complete and accurate.
DIRECTORS
During the year IDBI withdrew the nominee Director Mr.P.M.Suresh from
the Board.
Mr S.Nagarajan and Mr.S.K.Chibber Director are retiring by rotation and
being eligible offers themselves for reappointment.
During the year Smt. Jayanthi Thangkabalu and Sri.Karthik Thangkabalu
were appointed as Additional Directors on the board on 21.11.2007 and
they hold the appointment till the conclusion of the Annual General
meeting. The company has received notice from the members proposing to
appoint them as Directors of the company along with the requisite fees.
FIXED DEPOSITS
The Company has neither accepted nor renewed any deposits during the
year and has no overdue or unclaimed deposits.
SUBSIDIARY COMPANY
The Annual Report and other particulars in respect of subsidiary
company as required under Section 212 of the Companies Act, 1956 are
attached.
PARTICULARS OF EMPLOYEES
During the year under review, no employees were in receipt of
remuneration exceeding Rs.2,00,000 per month or Rs.24,00,000/- per
annum.
AUDITORS
M/s.M.S.Jaganathan & Viswanathan, the present auditors of the Company
retire at the ensuing Annual General Meeting expressed their
unwillingness for re-appointment. Hence M/s. N. Rangamani & Sridharan
Associates, Chartered Accountants, Chennai proposed as auditors of the
Company in the place of the retiring auditors.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO:
The particulars required to be included in terms of section 217(1)(e)
of the Companies Act, 1956 with regard to conservation of energy,
technology absorption, foreign exchange earnings and outgo are given in
the Annexure to this report.
DIRECTORS RESPONSIBILITY STATEMENT UNDER SECTION 217(2AA):
In compliance of Section 217(2AA) of the Companies Act, 1956, as
amended by the Companies (Amendment) Act, 2000, the Directors of your
Company confirm:
i) that all applicable Accounting Standards have been followed in the
preparation of Annual Accounts.
ii) that such Accounting Policies have been selected and applied
consistently and such judgements and estimates made are reasonable and
prudent so as to give a true and fair view of the state of the affairs
of the Company as at 31st March, 2008 and of the Profit of the Company
for the year ended 31st March, 2008.
iii) that proper and sufficient care has been taken for the maintenance
of adequate Accounting Records in accordance with the provisions of the
Act for the assets of the Company and for preventing and detecting
fraud and other irregularities.
iv) that the accounts have been prepared on a going concern basis.
ACKNOWLEDGEMENT
Your Directors acknowledge with gratitude the assistance and
co-operation extended by the State Bank of India, and Financial
Institutions Viz., IDBI Ltd., ICICI Bank Ltd, IFCI, IIBI and Canbank
Mutual Fund. The Company had enjoyed cordial industrial relations
during the year.
By Order of the Board
JAYANTHI THANGKABALU
Chennai KARTHIK THANGKABALU
01.09.2008 Directors | 