| Your Directors are presenting this 23rd Annual Report together with the
Audited Statement of Accounts and Cash Flow Statement for the year
ended 31st March, 2001.
FINANCIAL RESULTS FOR THE YEAR
Rs.
OPERATING LOSS 2,61,74,172
Add: Interest 1,866
GROSS LOSS 2,61,76,038
Add: Depreciation 96,92,007
LOSS FOR THE YEAR 3,58,68,045
Less: Investment allowance utilised reserve withdrawn 6,75,000
3,51,93,045
Add: Interest receivable reversed for prior year 1,69,87,385
1/5th Share issue expenses written off for prior 4 years 40,91,076
Prior year expenses for Sales Tax 8,520
Bonus paid for Prior year 1998-99 12,76,569
Diminution in market value of investments 1,815
Balance of loss brought forward 9,68,23,545
Balance Loss Carried over 15,43,81,955
Investment Allowance Reserve created in 30.09.1987 and 31.03.1989
amounting to Rs. 6,75,000/- has been transferred to Profit and Loss
account, since it is no longer necessary. Your Directors recommend that
the balance loss of Rs. 15,43,81,955/- be carried to next year and
adjusted against future profits.
In view of the adverse working results, your Directors with regret are
forced to skip the dividend for this year as well.
WORKING OF THE COMPANY
The year under review has witnessed major upheavals in the Indian
Economy. The other major economic factors have resulted in a liquidity
crisis and shortage of resources. Your Company was also no exception to
these factors. In line with adverse trend in Cotton Textile Industry &
high cost of inputs and services has resulted in operating loss. All
these adverse factors have resulted in a loss of Rs. 3,58,68,045/-.
PROSPECTS
The period 2001-2002 has not started with any good omen. A major
restructuring programme has been undertaken by the Company. These plans
include streamlining of product mix & operation, rationalisation of
labour force, achieving productivity at optimum level in terms of
capacity, negotiating for lower cost debts, management is confident
that the above measures would enable the Company to turn around and
reach to break even level before the end of current year.
FIXED DEPOSITS
No fixed deposits which has become due remain unpaid as on 31.3.2001.
DIRECTORS
The Director Sri.K. R. Subramanian retire by rotation at the ensuing
Annual General Meeting and being eligible, offers himself for
re-appointment.
Sri. R. Ramanathan resigned the office of the Managing Director with
effect from 10th October 2001 and has been appointed as Chairman with
effect from 10th October 2001.
AUDITORS
M/s. S. V. Visvanathan & Associates, Auditors retire at the ensuing
Annual General Meeting and they are eligible for re-appointment.
DISCLOSURE OF PARTICULARS
A statement showing the details of employees as required under Section
217(2A) of the Companies Act, 1956 is not annexed as none of the
employee is drawing the ceiling limit of Rs. 6,00,000/- per annum.
Particulars under Rule 2 of the Companies (Disclosure of Particulars in
the Report of the Board of Directors) Rules, 1988 are given in the
Annexure to this Report.
DIRECTOR'S RESPONSIBILITY STATEMENT
The Board of Directors states:
1) That in the preparation of the Annual Accounts for the year ended
31.3.2001 the applicable accounting, standards had been followed along
with proper explanation relating to material departures;
2) That the Directors had selected such accounting policies and applied
them consistently and made judgements 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 ended 31.3.2001 and the
Profit of the Company for that period.
3) That the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
4) That the Directors had prepared the Annual Accounts for the year
ended 31.3.2001 on a going concern basis.
ANNEXURE
Forming part of the Report of Board of Directors for the year ended
31st March, 2001.
Particulars as required under Rule 2 of the Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988 made under
Section 217(1)(e) of the Companies Act, 1956.
PARTICULARS OF TECHNOLOGY ABSORPTION: NIL
PARTICULARS ON FOREIGN EXCHANGE EARNINGS AND OUTGO:
Earnings : Rs. NIL
Outgo : Rs. NIL
For and on behalf of the Board of Directors,
Place: Salem, R. RAMANATHAN
Date: 17th May, 2002. Chairman | 