| The Directors have pleasure in presenting the 26th 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 137.63 204.12
Add Extraordinary Exceptional Item 696.23 0.00
Profit/(loss): before provision of
Depreciation & Tax 646.91 (1064.20)
Less/(add): Provision for Depreciation (20.04) (22.56)
Profit/(loss) before tax 626.87 (1086.76)
Less/(add): Tax adjustment 1.25 0.74
Less/(add): Provision for Doubtful
Debts/advances 0.00 (11.95)
Profit/(loss) after tax 625.62 (1097.97)
OPERATIONS:
The year under review resulted in the net profit of Rs. 625.62 lacs,
after taking the relief from OTS amounting to Rs. 696.23 lacs as
compared to net loss of Rs. 1097.97 lacs during the previous year. As
was in earlier years, the manufacturing operations at Jalgaon unit were
remained suspended and the weaving units were in operation mainly on
job work basis due to shortage of working capital.
DIVIDEND
In view of losses, the Board is not recommending any dividend for the
year ended 31st March 2008.
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.
INSURANCE
Due to continuous financial difficulties, no assets of the company have
been insured against the fire and other risks.
LISTING
The equity shares of the company are listed on Mumbai, Delhi, Kolkatta,
Chennai and Ahemdabad Stock Exchanges. The annual listing fees have
been paid till (a) 1997-98 for Kolkatta, Chennai and Ahemdabad Stock
Exchanges (b) 1998-99 for Dehli Stock Exchange and (c) 2000-2001 for
Mumbai Stock Exchange.
FIXED DEPOSITS
The company has accepted a deposit from a firm in which relatives of
the directors are partner to settle the OTS amount of secured creditors
however technically it is in contravention of provisions of section 58A
of the Companies Act 1956.
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 2008, the applicable accounting standards have been followed
along with proper explanation relating to material departures.
ii) The Directors have selected such accounting policies and applied
them consistently and made judgements 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 2008 on a going concern basis.
PROVISION OF SICA, 1985:
As reported in last year, in the hearing before BIFR on 6th October
2004, direction were given to forward copies of orders / proceedings to
the concerned High Court for further necessary action for winding up
the company. The Honourable High Court, Mumbai issued notification to
official liquidator for appointing him as provisional liquidator and
the hearing before the liquidator is in process. The company, in view
of OTS with secured creditors, is in the process of filing an appeal
before the honourable High Court, Mumbai to give permission for sale of
its fixed assets to clear the dues payable under OTS.
ACCUMULATED LIABILITIES
In respect of liabilities provided in the audited accounts further to
add that pursuance to the heavy losses, the company suspended its yam
manufacturing Works / functioning in its units / factories long back
and in lieu of no improvement in the textile market but reactant slack
down, it has closed down yarn manufacturing units / factories long back
and approached to BIFR in the year 2000-2001 and subsequently BIFR
declared the company sick industrial undertaking.
Therefore it is pertinent to say that the liabilities of the company
towards all financial institution / banks, of its principles amounts,
interest and compound interest along with rate inconceivable /
untenable and can not be taken as the admitted liabilities but under
scanner / scrutinisation / arbitrated / prima-facie and subject for the
verdict of an appropriate Court of Law as per provision i.e. the
liabilities stand as disputed / integrated.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO:
Information 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 is given here below: -
A. CONSERVATION OF ENERGY
As in the past, the company continues its efforts to improve methods of
energy conservation and utilisation.
B. TECHNOLOGY ABSORPTION:
The Company is doing research and development for improvement in shades
of yarns and fabrics as routine activities.
C. FOREIGN EXCHANGE EARNING AND OUTGO:
There is no foreign exchange earning during the year and foreign
exchange outgo is Rs. Nil (Rs. 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.
For and on behalf of the Board
For ADHUNIK SYNTHETICS LIMITED
Radheshyam Poddar
Chairman
Mumbai, 11th August 2008 | 