| Dear members,
The Directors take pleasure in presenting the Annual Report along with
the Audited Statement of Accounts for the year ended 31st March, 2014
as under:
FINANCIAL RESULTS:
The summary of financial results for the year is given below: (Rs. In
Lacs)
Year Ended Year Ended
Particulars 31/03/2014 31/03/2013
Sales & Operating Income 3346.50 8417.26
Other Income 165.57 57.6
Total Revenue 3512.07 8474.86
Operating Profits (PBDIT) -1163.16 864.2
Less: Depreciation 69.99 82.51
Interest 628.81 599.08
Profit/Loss Before Tax & Exceptional Items - 1861.96 182.61
Less: Exceptional Items 0 0
Current Tax 0 0
Provision for Taxation 0 55
Deferred Tax Liability -102.58 17.26
Profit/ loss after Tax -1759.38 110.34
DIVIDEND
With a view to conserve resources, your directors have not recommended
any dividend for the year under review.
REVIEW OF BUSINESS OPERATION
During the year under review, your company has registered the turnover
of Rs. 3346.50 Lacs against the turnover of Rs. 8417.26 Lacs of
previous year. The interest expense has also impacted the
profitability. The Loss before Tax for the current year is Rs. 1861.96
Lacs as against the Profit of Rs. 182.61 Lacs of previous year.
CORPORATE GOVERNANCE REPORT
Pursuant to Clause 49 of the Listing Agreement with the Stock Exchange,
Report on Corporate Governance and a certificate from the Statutory
Auditors of the Company confirming compliance of the same has been
included in the Annual Report as a separate section.
DIRECTORS
During the year the following directors have resigned from the post of
Directors.
Name of Director Date of Resignation
Rakesh Puri May 1, 2013
Manan Patel May 7, 2013
Kalip Shastri February 10, 2014
Mr Tejdeepsingh Harvindersingh Anand liable to retire by rotation at
the ensuing Annual General Meeting and being eligible, have been
proposed for re- appointment. Brief resumes of the directors being
reappointed together with other relevant details form part of the
Notice of the ensuing Annual General Meeting. The Board recommends
their reappointments.
AUDITORS
M/s. Motwani & Agarwal, Chartered Accountants has proposed them to be
appointed as Statutory Auditors of the Company. Further a consent
letter and certificate from M/s. Motwani & Agarwal, Chartered
Accountants stating that their appointment, if made, will be in
accordance with the provisions of Section 139 of the Companies Act
2013. The Audit Committee in its meeting held on August 8, 2014 has
also recommended the appointment of M/s. Motwani & Agarwal as Statutory
Auditors of the Company. Your directors also recommend their
appointment
There are certain reservations, Qualifications or adverse remarks in
the Auditor's Report for the period ended on 31st March 2014. The Board
of Directors of the Company would like to Clarify / Explain the same as
under :
1. The recovery cases and arbritation matters against the company have
been contested by the company and hence in our opinion, the said legal
cases and abritation matters would not affect the going concern concept
of accounting to the company.
2. In the current financial year, the company had applied for Internal
Restructuring of its Loans & Advance with the Union Bank of India. The
Debt has been internally restructured and the revised terms &
conditions have been issued to the company by UBI. The company is also
in the process of applying for internal debt restructuring with other
banks & financial institutions. The internal restructuring package
might envisage reduction in interest rates and further also envisage
funding of interest for prior period overdue interest, hence the
defaulted amount shall be crystallized once the major portion of debt
is restructured. Hence, in opinion of management of the company, the
matter shall be resolved and will not affect the going concern concept
of accounting to the company.
3. The Company is in the process of appointing capable qualified whole
time company secretary for handling the corporate law matters of the
company. Till that time, all the corporate law matters have been & will
be handled by part time company secretary.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to sub-section (2AA) of Section 217 of the Companies Act,
1956, the Board of Directors of the Company hereby state and confirm
that:
In the preparation of the Annual Accounts, the applicable accounting
standards were followed:
The Directors had selected such accounting policies and applied them
consistently, made judgments 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 and of the profit of the
Company for that period;
The Directors had 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.
The Directors had prepared the annual accounts on a going concern
basis.
PARTICULARS OF THE EMPLOYEES
The Company had not paid any remuneration attracting the provisions of
section 217(2A) of the Companies Act, 1956 read along with the
Companies (Particulars of Employees) Rules, 1975. Hence, no information
is required to be appended to this report in this regard.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING AND OUTGO
The Company is doing the utmost for conservation of Energy. As regards
Technology Absorption, the same is nil. During the year there were no
foreign exchange earnings and outgo.
ACKNOWLEDGMENTS:
Your Directors express their sincere appreciation for the valuable
assistance and co-operation extended to the company by its Customers,
Bankers, Financial Institutions, State and Central Government
Authorities, Service Providers, Contractors and the Stake Holders.
Your Directors also wish to place on record their appreciation of the
dedicated services and valuable contribution by the employees of the
company at all levels.
For and on behalf of the Board of Directors
Place : Ahmedabad Anant Maloo
Date : August 14, 2014 Managing Director | 