| The directors present herewith the Eighteenth Annual Report and
Audited Statement of Accounts for the year ended 31st March2008:
FINANCIAL RESULTS:
(Rs. In lacs)
Current year Current year
ended 313.2008 ended 31.3.2007
Turnover Nil Nil
Profit/( Loss) before Interest &
Depreciation (2.00) (1.67)
Less: Interest & Financial Charges 28.99 28.95
Less: Depreciation 9.08 10.54
Profit/(Loss) before Tax (40.08) (41.16)
Less: Provision for Taxation Nil Nil
Net Profit / (Loss) (40.08) (41.16)
Add: Surplus/(Deficit) brought
forward from previous year (1015.85) (974.82)
Less: Prior year adjustment - -
Surplus/(Deficit) carried to Balance Sheet (1055.95) (1015.85)
OPERATIONS:
The operations of the company remained suspended during the year and as
result of impact of Financial charges due to the Institutions and Banks
the company has posted a Loss of Rs. 40.08 lacs.
DIVIDEND:
In view of the Losses, your directors regret their inability to
recommend any dividend for the year
INDUSTRIAL SICKNESS:
Due to heavy losses incurred during the previous years the entire Net
Worth of the company had eroded on 31/10/2000 and your company had
become a Sick Industrial Company in terms of Section 3(1) (O) of the
Sick Industrial Companies (Special Provisions) Act, 1985 (SICA).
However, the company has settled its Dues with State Bank of India.
Necessary reference under section 15 of the SICA was made to the Board
for Industrial and Financial Reconstruction (BIFR), which is still
pending.
Further, U.P.Financial Corporation the main Secured Creditor of the
company have already taken over the Physical possession of the Unit
i.e. all the Assets of the Company, located at Rania, Kanpur (Dehat) on
28/6/2003 under Sec. 13/4 of Securitization and Reconstruction of
Financial Assets and Enforcement of Security Interest Act. The Assets
of the company are still in possession of UPFC, lying unsold.
LITIGATIONS:
There have been no fresh litigations or orders against your company
during the year.
FIXED DEPOSIT:
Your company has not accepted any deposits from the Public with in the
meaning of Section 58-A of the Companies Act, 1956.
DIRECTORS :
Pursuant to the provisions of the Companies Act, 1956 read with Article
125 of the Articles of Association of the company Shri Vishal Garg,
Director of the company, retires by rotation and being eligible offers
themselves for reappointment.
AUDITORS:
M/s P.D. Agarwal & Co., Chartered Accountants, Kanpur retire at the
forthcoming Annual General Meeting and being eligible, offer themselves
for re-appointment. The observations made in the Auditors Report read
with notes to the accounts are self explanatory and do not call for any
further comments.
PERSONNEL:
Industrial relations continued to be cordial during the year under
review. Since none of the employees of the company was in receipt of
remuneration in excess of the limits specified, the particulars of
employees as required under section 217 (2A) of the Companies Act. 1956
read with Companies (Particulars of Employees) Rules, 1975 as amended
are not required to be given.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO:
As the Company had carried out only trial runs and no regular
manufacturing activity was carried out during the year, hence, there is
nothing to report pursuant to Section 217(1) (e) of the Companies Act.
1956 read with Companies (Disclosure of Particulars in the Reports of
Board of Directors) Rules, 1988.
DIRECTORS RESPONSIBILITY STATEMANT IN TERMS OF SECTION 217 2(AA) OF
THE COMPANIES ACT,1956:
Your Directors have prepared financial statements in conformity with
generally accepted accounting principles so as to ensure that they give
true and fair view of the state of affairs of the company at the end of
the financial Year and the profit & loss of the company for the period.
Your Directors hereby confirm that:-
(i) in the preparation of the financial statement applicable accounting
standards have been followed:
(it) appropriate accounting policies have been followed and applied
consistently.
(iii) all the books of accounts and statutory are registers have been
properly maintained and proper and sufficient care has been taken for
safeguarding all the assets and other interest of the company and
preventing and detecting fraud and other irregularities.
(iv) The Directors had prepared the Annual accounts on going concern
basis.
INFORMATION UNDER LISTING AGREEMENT:
The Shares of the Company are listed at Ahmedabad, Delhi, Jaipur,
Kanpur and Mumbai Stock Exchanges The company has not paid listing fee
due to financial constraints, however provisions for the same have been
made in the Books of accounts.
ACKNOWLEDGEMENT:
The Directors acknowledge with gratitude the assistance received by the
company from Shareholders Employees and others.
For and on Behalf of the Board
D.N. GARG
Chairman
Place: Kanpur
Date : 30th August 2008 | 