| Dear Members,
The Directors are pleased to present the Eighteenth Annual Report on
the business and operations of the Company and the audited statement of
accounts for the year ended 31st March, 2011.
Business Scenario and Performance
The World Economy during the year ended with shades of recession in
USA, but the slowdown of economy as a result of European debt concerns
further aggravated the business sluggishness particularly in the home
furnishing area due to cut back in the big tickets pending.
The Overseas silk yarn supplies have seen unprecedented cost escalation
by almost 100-150%. Your Directors have initiated various aggressive
marketing steps like additional products in different blends, domestic
sales which is getting positive response and are also hopeful of
improving the performance during the coming year.
During the year under review due to steep increase in raw material
cost, higher interest rates & volatile foreign currency fluctuations
the Company has reported a loss of Rs. 479.06 Lacs compared to loss of
Rs. 53.61 in the previous year.
Financial Results and Appropriations
(Rs. in Lacs)
Particulars 2010-11 2009-10
Operating Profit (105.09) 303.58
Profit before tax (479.06) (53.61)
Provision for taxation - 3.36
Provision for deferred tax (180.46) (7.65)
Profit after tax (298.60) (49.32)
Profit brought forward
from previous year 916.70 966.02
Profit available for 618.09 916.70
appropriation
Dividend
During the year ended 31st March, 2011 , the Board has not recommended
any dividend for the year under review.
Directors
In terms of provisions of the Companies Act, 1956 and Articles of
Association of the Company, Sri Sandeep Kumar Churiwala and Sri Saket
Kumar Churiwala retire by rotation and being eligible, offer themselves
for re-appointment.
Directors' responsibility statement
Pursuant to the provisions of Section 217(2AA) of the Companies Act,
1956, the Board of Directors confirms that:
(a) In the preparation of Annual Accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures.
(b) Appropriate accounting policies have been selected and applied
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of the affairs
of the Company at the end of the Financial Year and of the Profit of
the Company for that period.
(c) Proper and sufficient care has been taken 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) The annual accounts have been prepared on a going concern basis.
Corporate Governance
Your Company has consistently been complying with the Corporate
Governance Code prescribed by SEBI and a detailed report on Corporate
Governance together with a Certificate of Compliance from the statutory
auditors, as required by Clause 49 of the Listing Agreement, forms a
part of this Annual Report.
Conservation of energy, Technology absorption and Foreign exchange
earnings and outgo
Information under Section 2l7(l)(e) read with Companies (Disclosure of
particulars in the report of Directors) Rules, 1988 is set out in
Annexure - A, forming part of this report.
Management Discussion & Analysis Report
Management Discussion & Analysis Report is enclosed at Annexure - B to
this report.
Particulars of employees
There are no employees employed during the year or part of the year who
were in receipt of remuneration in excess of the limits prescribed
under Section 2I7(2A) of the Companies Act, 1956 read with Companies
(Particulars of Employees) Rules, 1975.
Auditors
M/s. G. Bagrodia & Co, Chartered Accountants, Bangalore bearing Firm
Registration No.: 000312S, retires at the conclusion of ensuing Annual
General Meeting and are eligible for re-appointment. Directors
recommend the appointment of the retiring Auditors.
Auditor's Report
Regarding Point No.4 (a)
Tho Company has initiated necessary efforts with the concerned to
realize / recover the advances. Management considers all advances as
good and realizable though slowly in view of present recession.
Point No. 4 (b)
The Company maintains cost records as prescribed by the central
government under Section 209(l)(d) of Companies Act, 1956 and the
valuation for the finished and semi finished goods are taken at the
cost as certified by a Cost Accountant and others at cost of
procurement or realizable value whichever is less as per the normal
industrial standards.
Acknowledgements
Your Directors wish to place on record their appreciation for the
excellent co-operation and assistance received from Bankers, Financial
Institutions, Central and State Government. We express our wholehearted
thanks to the customers and suppliers for their valued patronage and
the shareholders for the continued confidence reposed in the Company
and its Management.
Your Directors also wish to place on record their appreciation for the
total dedication and wholehearted efforts made by employees of the
Company.
For and on behalf of the Board
Sushil Kumar Churiwala
Chairman and Managing Director
Place : Bangalore
Date : 08-08-2011
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