| The Directors have pleasure in presenting the Eighteenth Annual Report
together with the Audited Accounts of the Company for the year ended
March 31, 2010.
1. FINANCIAL RESULTS :
(Rs. Lacs)
Particulars Current Year Previous Year
2009-10 2008-09
Total Income 959.71 3,376.42
Gross Loss
(Before Depreciation
& Interest) 709.18 3,901.15
Less : Interest 64.99 1,006.15
Less : Depreciation 498.38 616.20
Net loss
(after Depreciation
and Interest) 1,276.55 5,523.86
Add: Provision for
taxation ---- 1.95
(Including FBT)
Net Loss 1,276.55 5,525.81
2. DIVIDEND :
During the year the Company has incurred a Net Loss of Rs. 12.76 Crores
(Previous year Net Loss of Rs. 55.26 Crores) due to lower capacity
utilisation. Hence the directors do not recommend any dividend for the
year under reviews.
3. SALES, PROFITABILITY & PRODUCTION:
The Company achieved the turnover of Rs. 9.60 Crores during the year
under review against the turnover of Rs. 33.76 Crores in the (previous
year) The fall is because of low capacity utilisation.
4. PROSPECTS:
The Company has improved labour welfare and working conditions and is
looking forward to improve capacity. The local market for yams and
fabrics is better. The Company is in discussion with th lenders for
restructuring its debts and also OTS.
5. FIXED DEPOSITS :
The Company has not accepted or invited any Fixed Deposit from the
public during the year under review.
6. TERM LOAN :
The Company has not availed any fresh Term Loan during the year.
7. ENVIRONMENT MANAGEMENT & SOCIAL MANAGEMENT :
All manufacturing process require environmental clearance from
respective Pollution Control Board and the same are in compliance with
present environmental legislation. As an integral part of Company`s
environmental protections drive, the Company ensures minimum quantity
of waste generation, low emission levels and low noise pollution levels
during plant operations. The relationship with the workmen remains
cordial during the year.
8. DIRECTORS :
Shri S C Kalra and Shri Sanjay Pachlangia, directors of the Company
retire by rotation at the ensuing Annual General Meeting of the Company
and being eligible offer themselves for re-appointment.
9. Directors' Remuneration :
During the year under review, the Managing Director has not claimed the
remuneration as the Company has suffered the loss.
10. DIRECTORS' RESPONSIBILITY STATEMENT :
Pursuant to section 217 (2AA) of the companies act 1956, the Board of
Directors of the Company confirms :
a) That for the preparation of the annual accounts, the applicable
accounting standards has been followed.
b) That the Standard accounting policies have been consistently applied
in consultation with the auditors.
c) 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.
d) That the Annual accounts have been prepared on an ongoing concern
basis.
11. COST AUDIT :
As per the requirement of Central Government and pursuant to Section
233(b) of the Companies Act, 1956, Mr. C. S. Joshi, Cost Accountant of
M/s. Shekhar Joshi & Co., Cost Accountants, Mumbai, was appointed as
the Cost Auditors.
12. AUDITORS :
M/s. P V Page & Co,. Chartered Accountants retire as Statutory Auditors
of the Company and are eligible for re-appointment as Statutory
Auditors of the Company to hold office from the close of the ensuing
annual general meeting till the conclusion of the next annual general
meeting on such terms, condition and remuneration as may be mutually
agreed between the board of directors and the said auditors. The
certificates from the Auditors have been received to the effect that
their appointment, if made, would be within the limits prescribed under
section 224(1)(B) of the Companies Act, 1956
13. INSURANCE :
The Properties and Assets of the Company have been adequately insured.
The Company has taken Insurance Policy covering all major risks.
14. PARTICULARS OF EMPLOYEES :
There are no employees during the period drawing remuneration more than
Rs. 24 lacs per annum under Section 217(2A) of the Companies Act, 1956.
As such no particulars are required to be furnished.
15. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO :
Particulars regarding Conservation of Energy, Technology Absorption and
Foreign Exchange Earnings and outgo as required under Section 217 (1)
(e) of the Companies Act, 1956 are given in the Annexure - I and form
part of this report.
16. MANAGEMENT DISCUSSIONS AND ANALYSIS REPORT :
The operations of the Company are reviewed in detail in the Management
Discussions and Analysis Report in the Annexure - II and form a part of
this report.
17. CORPORATE GOVERNANCE :
A separate statement on corporate governance is included in the Annual
Report along with the Auditors' Certificate on its compliance in the
Annexure - III and form part of this report
18. ACKNOWLEDGEMENTS :
Industrial relations with employees continue to remain cordial. Your
Directors record their appreciation to all the employees of the
Company, Financial institutions, Suppliers, Customers, shareholders,
Business associates for the continuous support given by them to the
Company and their confidence in the management
By order of the Board of Directors
Place:Mumbai. (R K Agarwal)
Date : October 30, 2010 Chairman
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