Mar 31, 2015
Dear Members,
Your directors take pleasure in submitting to you their Twenty Second
Annual Report together with the Audited Balance Sheet of the Company as
at 31st March, 2015 and the Profit & Loss Account for the Year ended on
that date.
WORKING RESULTS :
The working results of the Company for the Year under review are
summarized and furnished below: - Rs. In lakhs
31.03.2015 31.03.2014
Sales and Other Receipts 212.90 491.96
Other Income 0.89 0.95
Total Receipts 213.79 492.91
Gross Profit/(loss)before interest and (59.79) (22.95)
Depreciation
Less : Interest 44.94 40.81
Profit before Depreciation (104.73) (63.76)
Less: Depreciation 4.48 6.23
Net Profit/ loss for the Year (109.21) (69.99)
Opening balance - Loss' brought forward (1524.84) (1454.84)
Total Loss taken to P& L Account (1634.05) (1524.84)
REVIEW OF OPERATIONS :
During the year under review, the overall sales and other income of the
Company was Rs.213.79 lakhs as against Rs.492.91 Lakhs in the last
year. Gross Profit / (loss) before interest and depreciation amounted
to Rs (59.79) lakhs (Previous Year Rs.(22.95) lakhs). The Net loss came
to Rs.109.21 lakhs (Previous Year Rs.(69.99) lakhs).
PROSPECTS :
As the textiles industry is slightly recovering and power position
becoming stable, there may be slight improvement in the performance of
the company in the current year.
The management is making all the possible efforts to bring better
results in the future.
DIRECTORS:
The board of Directors is duly constituted.
Mr Vilayati Ram Gupta retires by rotation at the ensuing Annual General
Meeting and is eligible for reappointment.
Ms C R Padma has resigned from the Board of Directors of the company on
19th May, 2015 and in her place Mr Kana Ram has appointed as an
Independent Director with effect from 30th May, 2015.
The Board wishes to place on record its appreciation of the good work
done by Ms C R Padma during hertenure with the Company.
None of your directors is disqualified under Section 164 of the Act.
All Independent Directors have given a declaration that they meet the
criteria of independence as laid down under section 149 (6) of the
Companies Act, 2013 and Clause 49 of the Listing Agreement.
EXPLANATION OR COMMENTS ON QUALIFICATIONS, RESERVATIONS OR ADVERSE
REMARKS OR DISCLAIMERS MADE BY THE AUDITORS / SECRETARIAL AUDITOR IN
THEIR REPORTS
There were no qualifications, reservations or adverse remarks made by
the Auditors in their report.
However, as a prudent measure your Company has obtained a secretarial
audit report as applicable to Listed Companies and as required under
section 204 (1) of the Companies Act, 2013.. Certain observations made
in the report with regard to non filing of some forms and compliance
with certain SEBI rules and guidelines should be viewed in the light of
the aforesaid SEBI and Companies Act 2013. However, the company would,
as in the past, ensure that all the applicable provisions are complied
to the fullest extent.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186
OFTHE COMPANIES ACT, 2013
There were no loans, guarantees or investments made by the Company
under Section 186 of the Companies Act, 2013 during the year under
review and hence the said provision is not applicable.
Key Managerial Personnel
Mr.Hemant Kumar Gupta, was appointed as Chief Financial Officer with
effect from 30th Sep, 2014. The remuneration and other particulars of
Mr. Hemant Kumar Gupta is included in extract of Annual Report in Form
MGT 9 annexed as Annexure A.
Internal Control System and their Adequacy
The Company has an Internal Control System, Commensurate with its size,
scale and complexity of its operations. Audit Committee reviews
internal audit reports and oversees the internal control system of the
Company.
Corporate Governance
Your Company is committed to maintaining high standards of Corporate
Governance. A report on Corporate Governance, along with a certificate
from the Statutory Auditors on compliance with Corporate Governance
norms forms a part of this report.
Human Resources
The HR strategy and initiatives of your Company are designed to
effectively partner the business in the achievement of its ambitious
growth plans and to build a strong leadership pipeline for the present
and several years into the future.
STATUS OFTHE COMPANY UNDER SICA:
BIFR in its meeting held on 27/09/2012 has approved Modified Draft
Rehabilitation Scheme. The company is taking necessary steps to
implement the same.
Extract of Annual Report
The Details forming part of the extract of the Annual Report form MGT 9
is annexed herewith as AnnexureA.
Meetings
Calendar of Meetings are prepared and circulated in advance to the
Directors. The details of which are given in the Corporate Governance
Report.
Directors Responsibility Statement
To the best of our knowledge and belief and according to the
information and explanations obtained by us, your Directors make the
following statements:
1) in the preparation of the annual financial statements for the year
ended March 31st, 2015, the applicable accounting standards had been
followed along with the proper explanation relating to material
departures.
2) for the financial year ended March 31st, 2015, such accounting
policies as mentioned in the Notes to the financial statements have
been applied consistently and judgments and estimates that are
reasonable and prudent have been made so as to give a true and fair
view of the state of affairs of the Company and of the Profit and Loss
of the Company for the year ended 31st March, 2015.
3) that proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the provisions of
this Act for safeguarding the assets of the Company and for preventing
and detecting fraud and other irregularities;
4) the annual financial statements have been prepared on a going
concern basis.
5) that proper internal financial control was followed by the company
and that such internal financial controls are adequate and were
operating effectively.
6) that proper system to ensure compliance with the provisions of all
applicable laws was in place and that such systems were adequate and
operating effectively.
Remuneration Policy
The Board has, on the recommendation of the Nomination and Remuneration
Committee, framed a policy for selection and appointment of Directors,
Key Managerial Personnel, Senior Management and their Remuneration. The
Key provisions of Nomination and Remuneration policy are as follows:
Nomination and Remuneration policy is guided by a common reward
framework and set of principles and objectives as particularly
envisaged under section 178 of the Companies Act 2013, inter alia
principles pertaining to determining qualifications, positives
attributes, integrity and independence etc.
Related PartyTransactions
Particulars of Contracts and Arrangements with Related Parties Referred
to in Sub-Section (1) of Section 188 of Companies Act, 2013:
The Company adopted a Related Party Transaction Policy in terms of
Section 188(1) All transactions entered with Related Parties for the
year 2014-15 were on Arm's length basis.
There were no material related party transactions in terms of the
Related Party Transaction Policy during the year.
Thus disclosure in Form AOC-2 as per Companies Act, 2013 and Rul 8 of
Companies (Account) Rules, 2014 is not required.
All related party transaction are placed before the Audit Committee and
also to the Board for approval on a quarterly basis. Omnibus approval
was obtained for transaction of repetitive nature.
ANNUAL PERFORMANCE EVALUATION
In line with the criteria evolved by the Nomination and Remuneration
Committee, the performance of all Directors, Committees, Chairman etc.,
have been evaluated pursuant to the provisions of the Act and the
Listing Agreement.
Vigil Mechanism/Whistle Blower Policy
Pursuant to the non-mandatory requirements of the Listing Agreement,
the Company has established a whistle blower mechanism to provide an
avenue to raise concerns. The Ombudsperson appointed by the Board deals
with the complaints received and ensures appropriate action. No
employee was denied access to the Audit Committee. In line with the
requirement of Section 177 of the Companies Act, 2013, the scope of the
Whistle Blower Policy has been amended to include the Directors also
(in addition to the employees, customers and vendors) to facilitate
reporting of their genuine concerns relating to unethical behaviour,
actual or suspected fraud or violation of the Company's code of conduct
or ethics policy. Further, the mechanism also provides adequate
safeguards against victimisation of persons using the mechanism and
provides direct access to the chairperson of the Audit Committee in
appropriate or exceptional cases.
Particulars of Employees
The information required pursuant to Section 197 (12) of the Companies
Act, 2013 read with Rule 5(1) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 in respect of
employees of the Company, will be provided upon request. In terms of
Section 136 of the Act, the Report and Accounts are being sent to
Members and others entitled thereto excluding the information on
employees particulars which is available for inspection by the Members
at the Registered Office of the Company during business hours on
working days of the Company upto the date of the ensuing Annual General
Meeting.
There are no employees drawing salaries in excess of the limit
prescribed under Section 197 (12) of the Companies Act, 2013 read with
Rule 5(2) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rule, 2014.
Conservation of energy, Technology absorption and foreign exchange
earnings and outgo
Conservation of energy, Technology absorption and foreign exchange
earnings and outgo is annexed.
Disclosure under the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013
The Company has in place an anti sexual harassment policy in line with
the requirement of the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013. Internal Compliance
Committee (ICC) has been set up to redress complaints received
regarding sexual harassment. All employees (Permanent, contractual,
temporary and trainees) are covered under this policy. The company has
not received any compliant about sexual harassment during the year
2014-15.
Auditors
The Members appointed M/s Anjana & Co, the Statutory Auditors of the
Company for a period of 3 years from the conclusion of 21st AGM (2014)
till the conclusion of 24th AGM (2017).
The Board has recommended the appointment of the Auditors for the
financial year 2015-16. The necessary resolution is being placed
before the shareholders for approval.
The Company has received confirmation from the firm regarding their
consent and eligibility under sections 139 and 141 of the Companies
Act, 2013 read with the Companies (Accounts) Rules, 2014 for
appointment as the Auditors of the Company.
Mr A C Saravan, Practicing Company Secretary was appointed for the year
ended 31 st March ,2015 to undertake the Secretarial Audit of the
Company. The Report of Secretarial Audit is annexed herewith as
Annexure B.
STOCK EXCHANGES:
Your company is listed with Bombay Stock Exchange.
The Corporate Governance Report of your company as on 31.3.2015 is
enclosed for your perusal as Annexure - C.
MATERIAL CHANGES AND COMMITMENTS
There are no material changes and commitments in the business
operations of the Company from the financial year ended 31st March,
2015 to the date of signing of the Director's Report.
ACKNOWLEDGEMENT:
The Board wishes to place on record of their appreciation for the good
work done by the employees of the company. It takes the pleasure of
recording the services rendered by the MA and BIF R for and on the
revamping exercise of the company.
Place: Coimbatore By Order of the Board.
Date : 30.05.2015 -Sd-
V.R. Gupta Chairman
Mar 31, 2013
Ladies and Gentlemen,
Th directors take pleasure in submitting to you their Twentieth
Annual Report together with the Audited Balance Sheet of the Company as
at 31 st March, 2013 and the Profit & Loss Account for the Year ended
on that date.
WORKING RESULTS
The working results of the company for the year under review are
summarised and furnished below: -
Rs. in Lacs
Sales and Other Receipts 501.42
Other Income 2.49
Total Receipts 503.91
Profit before interest and Depreciation 45.43
Less: Interes 37.82
Profit before Depreciation 7.61
Less: Depreciation 7.18
Net Profit /loss for the Year 0.43
Opening balance - Loss'' brought forward (1455.27)
Total Loss taken to P & L Account (1454.84)
REVIEW OF OPERATIONS:
During the year under review, the overall sales and other income of the
Company was Rs 503.91 lakhs as against Rs.412.97 Lakhs in the last
year. Profit / (loss) before interest and depreciation amounted to Rs
45.43 lakhs (Previous Year Rs (43.36)lakhs). The Net Profit came to
Rs0.43 lakhs (Previous Year Rs(91.71) lakhs).
The major factors for low profit in the financial year under review
were due to increase in raw material prices, shortage of power and
inability to pass on the increase to our customers.
PROSPECTS:
As the textiles industry is slightly recovering and power position
becoming stable, there may be slight improvement in the performance of
the company in the current year.
The Directors are evaluating various options to improve the performance
of the Company with reference to sales and profitability.
DIRECTORS:
Miss.C.R.Padma retires by rotation and offers herself for re-election.
Mr.V.R.Gupta retires by rotation and offers himself for re-election.
Your directors recommend these resolutions for your approval.
DEPOSITS :
Your Company has accepted deposits from Companies without extending
invitation to public. As at the close of the year, there were no
amounts remaining unclaimed.
PARTICULARS AS PER SECTION 217 OF THE COMPANIES ACT. 1956 :
217 (1) (e) - A statement on the conservation of energy, technology
absorption and foreign exchange earnings and outgo has been furnished
by way of Annexure-1 to this report.
217 (2A) - There was no employee of the company who has drawn the
prescribed salary during the year under review.
DIRECTOR''S RESPONSIBILITY STATEMENT:
The Directors of the Company confirm the following, subject to the fact
that your company is a Sick Industrial Company within the meaning of
the Sick Industrial Companies (Special Provision) Act. 1985 :
i. that in the preparation of annual accounts, the applicable
accounting standards had been followed and there is no material
departure from the said standards :
ii. that the Directors had selected such accounting policies and made
judgements 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 and loss of the Company for
that period :
iii. that the Directors had taken proper and sufficient care for the
maintenance of dequate accounting records in accordance with the
provisions of the Act in safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities:
iv. that the Director had prepared the annual accounts on a going
concern basis.
AUDITORS:
M/s. Anjana & Co., Chartered Accountants, Coimbatore, the retiring
Auditors are eligible for reappointment. A certificate under Section
224(1 B) of the Companies Act, 1956 has been obtained from them
confirming their eligibility for reappointment.
STATUS OF THE COMPANY UNDER SICA:
During the year under review, BIFR in its meeting held on 27/09/2012
has approved Modified Draft Rehabilitation Scheme. Hence the agenda
number 5 in the notice have emerged
AUDIT COMMITTEE:
Pursuant to provision of Section 292A of the Companies Act.1956, the
audit committee constituted last year comprising of Sri. V.R. Gupta,
Sri. K. Venkatasubramaniam, Miss C.R. Padma discussed and given useful
suggestions in the implementation of the accounting standards and the
quickening process of internal check and audit.
STOCKEXCHANGES:
Your company is listed with Mumbai, Calcutta and Delhi Stock Exchanges
as Coimbatore stock exchange has been closed.
The Corporate Governance Report of your company as on 31.3.2013 is
enclosed for your perusal as Annexure - II.
ACKNOWLEDGEMENT:
The Board wishes to place on record of their appreciation for the good
work done by the employees of the company. It takes the pleasure of
recording the services rendered by the MA and B I F R for and on the
revamping exercise of the company.
Place : Coimbatore On behalf of the Board.
Date : 31.05.2013 V.R.GUPTA
Sd/-
Chairman
Mar 31, 2012
The directors take pleasure in submitting to you their Nineteenth
Annual Report together with the Audited Balance Sheet of the Company as
at 31 st March, 2012 and the Profit & Loss Account for the Year ended
on that date.
WORKING RESULTS
The working results of the company for the year under review are
summarised and furnished below: -
Rs. in Lacs
Sales and Other Receipts 410.30
Other Income 2.67
Total Receipts 412.97
Gross Profit before interest and Depreciation 43.36
Less: Interest 39.65
Profit before Depreciation (83.01)
Less: Depreciation 8.70
Net Profit/loss for the Year (91.71)
Opening balance - Loss brought forward (1363.56)
Total Loss taken to P & L Account (1455.27)
REVIEW OF OPERATIONS:
During the year under review, the overall sales and other income of the
Company was Rs.412.97 lakhs as against Rs.560.27 lakhs in the last
year. Gross Profit / (Loss) before interest and depreciation amounted
to Rs (43.36) lakhs (Previous Year Rs 31.11 lakhs). The Net loss
amounted to Rs91.71 lakhs (Previous Year Rs14.24 lakhs).
The major factors to net loss in the financial year under review were
due to increase in raw material prices, shortage of power, high cost of
interest and inability to pass on the increase to our customers.
PROSPECTS:
As the textiles industry is hard hit by slowing of economy and
government policies and high input cost , there may not be any
improvement in the performance of the company in the current year.
The Directors are evaluating various options to improve the performance
of the Company with reference to sales and profitability. Unless the
Company could secure remunerative prices for fabrics, the working
results may not be profitable.
DIRECTORS:
Mr.Ravindrakumar retires by rotation and offers himself for
re-election. Mr.K.Venkatasubramaniam retires by rotation and offers
himself for re-election. Your directors recommend these resolutions
for your approval.
DEPOSITS:
Your Company has accepted Inter Corporate Deposits from Companies. As
at the close of the year, there were no amounts remaining unclaimed.
PARTICULARS AS PER SECTION 217 OFTHE COMPANIES ACT, 1956:
217 (1) (e) - A statement on the conservation of energy, technology
absorption and foreign exchange earnings and outgo has been furnished
by way of Annexure-1 to this report.
217 (2A) - There was no employee of the company who has drawn the
prescribed salary during the year under review.
DIRECTOR'S RESPONSIBILITY STATEMENT:
The Directors of the Company confirm the following, subject to the fact
that your company is a Sick Industrial Company within the meaning of
the Sick Industrial Companies (Special Provision) Act. 1985 :
i. that in the preparation of annual accounts, the applicable
accounting standards had been followed and there is no material
departure from the said standards:
ii. that the Directors had selected such accounting policies and made
judgements 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 and loss of the Company for
that period :
iii. that the Directors had taken proper and efficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act in safeguarding the assets of the Company and for
preventing and de acting fraud and other irregularities:
iv. that the Director had prepared the annual accounts on a going
concern basis.
AUDITORS:
M/s. Anjana & Co., Chartered Accountants, Coimbatore, the retiring
Auditors are eligible for reappointment. A certificate under Section
224(1 B) of the Companies Act, 1956 has been obtained from them
confirming their eligibility for reappointment.
STATUS OF THE COMPANY UNDER SICA:
During the year under review, the company filed a Modified Draft
Rehabilitation Scheme to BIFR. In its meeting held on 15.12.2011, BIFR
has issued directions to Catholic Syrian Bank Ltd (Monitoring Agency)
for modifications of the relief and concessions of MDRS . Catholic
Syrian Bank Ltd has submitted the same after duly incorporating the
directions of BIFR. The company is awaiting for further BIFR
directions. Hence the agenda number 5 to 8 in the notice have emerged.
AUDIT COMMITTEE:
Pursuant to provision of Section 292A of the Companies Act. 1956, the
audit committee constituted last year comprising of Sri. V.R. Gupta,
Sri. K. Venkatasubramaniam, Ms. C.R. Padma discussed and given useful
suggestions in the implementation of the accounting standards and the
quickening process of internal check and audit.
STOCK EXCHANGES:
Your company is listed with Coimbatore, Mumbai, Calcutta and Delhi
Stock Exchanges. The Corporate Governance Report of your company as on
31.3.2012 is enclosed for your perusal as Annexure-ll.
ACKNOWLEDGEMENT:
The Board wishes to place on record of their appreciation for the good
work done by the employees of the company. It takes the pleasure of
recording the services rendered by the MA and BI F R for and on the
revamping exercise of the company.
Place: Coimbatore On behalf of the Board.
Date : 31.05.2012 V.R. GUPTA
Chairman
Mar 31, 2010
The directors have pleasure in submitting to you their Seventeenth
Annual Report together with the Audited Balance Sheet of the Company as
at 31st March, 2010 and the Profit & Loss Account for the Year ended on
that date.
WORKING RESULTS
The working results of the Company for the Year under review are
summarised and furnished below: - Rs. In Lacs
Sales and Other Receipts 327.13
Other Income 2.53
Total Receipts 329.66
Gross Profit before interest and Depreciat (08.00)
Less: Interest 38.01
Profit before Depreciation (46.01)
Less: Depreciation 8.93
Net Profit/loss for the Year (54.94)
Opening balance - Loss brought forward (1294.37)
Total Loss taken to P&L Account (1349.31)
REVIEW OF OPERATIONS:
During the year under review, the Company achieved production in
fabric, measuring 7.48 Lakh Metres as against 7.28 lakh Metres in the
previous year and purchased 0.046 lakh mtrs of cloth. The fabric sales
value realised was at Rs 284.40 Lakhs as against Rs266.29 Lakhs in the
last year. The Company did Conversion of Yam into fabric for Third
Parties and earned income by way of conversion charges amounting to
Rs.42.27 Lakhs (Rs 20.07 Lakhs in the last Year). Waste sales value
realized was at Rs0.46 lakhs as against Rs.0.52 lakhs last year. The
company earned interest of Rs2.53 lakhs by other activities which has
been included in other income. The overall sales and other income of
the CompanywasRs.329.66LakhsasagainstRs.292.77Lakhsinthelastyear.
On account of continuous recession in the economy and in particular in
the textile industry and power cut, the Volume of Production and Sales
remained very low.
PROSPECTS:
As the industrial recession continues to grip the whole nation and also
many Asian Countries, there may not be any improvement in the
performance of the company in the current year.
The Directors are evaluating various options to improve the performance
of the Company with reference to sales and profitability. Unless the
Company could secure remunerative prices for fabrics with improvement
in quality of yarn, the working results may not be profitable.
DIVIDEND: .
In the view of unsatisfactory results in the business, the Board of
Directors are not to recommend any divided as per statutory norms of
the company.
DIRECTORS:
Mr.Ravindrakumar, and Mr K Venkatasubramaniam, Directors of the company
retire by rotation and offers themselves for re-election. Your
directors recomrnend these resolutions for your approval.
DEPOSITS:
Your Company has accepted deposits from Companies as Inter Corporate
Deposits without extending invitation to public. As at the close of the
year, there were no amounts or interests remaining unclaimed.
PARTICULARS AS PER SECTION 217 OF THE COMPANIES ACT. 1956:
217 (1) (e) -Astatement on the conservation of energy, technology
absorption and foreign exchange earnings and outgo has been furnished
by way of Annexure-1 to this report.
217 (2A) - There was no employee of the company who has drawn the
prescribed salary during the year under review.
DIRECTORS RESPONSIBILITY STATEMENT:
The Directors of the Company confirm the following, subject to the fact
that your company is a Sick Industrial Company within the meaning of
the Sick Industrial Companies (Special Provision)Act. 1985 :
i. that in the preparation of annual accounts, the applicable
accounting standards had been followed and there is no material
departure from the said standards:
ii. that the Directors had selected such accounting policies and made
judgements 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 and loss of the Company for
that period:
iii. that the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act in safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities:
iv. that the Director had prepared the annual accounts on a going
concern basis.
AUDITORS:
M/s. Anjana & Co., Chartered Accountants, Coimbatore, the retiring
Auditors are eligible for reappointment. A certificate under Section
224 (1B) of the Companies Act, 1956 has been obtained from them
confirming their eligibility for reappointment. The report of the
auditor does not contain any disqualification.
STATUS OFTHECOMPANYUNDERSICA:
Your companys restructuring plan has been approved by the BIFR on
1.10.2002 and your directors are regular in sending the quarterly
reports based on the plan to the Operating Agencies and to BIFR. As per
BIFR directions on 9.9.2009, Catholic Syrian-bank was appointed as
monitoring agency and that the company will keep the CSB informed of
the implementation of sanctioned scheme. The company has submitted
draft modified rehabilitation scheme as required to CSB on 9.3.2010 and
the same has been sent by them to BIFR and are awaiting BIFR
directions.
Meanwhile, your directors are seriously thinking of possibility of
making your company a profitable one either by itself or through merger
or anyother means, and the discussions are going on. The result, if
possible will be a good news to all of us.
AUDIT COMMITTEE:
Pursuant to provision of Section 292A of the Companies Act.1956, the
audit committee constituted last year comprising of Sri. V.R. Gupta,
Sri. K. Venkatasubramaniam, Ms C.R. Padma discussed and given useful
suggestions in the implementation of the accounting standards and the
quickening process of internal check and audit.
STOCKEXCHANGES:
Your company is listed with Coimbatore, Mumbai, Calcutta and Delhi
Stock Exchanges.
CORPORATE GOVERNANCE:
The company complies with the principles of Corporate Governance as set
out in Clause 49 of the Listing Agreement continuously and your
Directors are pleased to attach (Annexure II) a report on Corporate
Governance together with the following Certificates / declarations.
a. CEO and CFO Certificate
b. Declaration on code of conduct.
c. Certificate from the Companys Auditors.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The Management Discussion and Analysis on business and operations of
the Company is attached to this report.
(Annexure III)
ACKNOWLEDGEMENT:
The Board wishes to place on record of their appreciation of the
valuable support and co-operation received from customers, vendors,
investors, statutory authorities and associates. Your directors place
on record their sincere appreciation of the contribution made by the
employees of the Company at all levels through their hard work,
dedication and support. It takes the pleasure of recording the services
rendered by the 0 A and BIF R for and on the revamping exercise of the
company.
Place .Coimbatore On behalf of the Board.
Date :29-05-2010 V.R.GUPTA
Chairman
Mar 31, 2003
The directors are hereby presenting the Nineth Annual Report together
with the Audited Balance Sheet of the Company as at 31st March, 2003
and the Profit & Loss Account for the Year ended on that date.
WORKING RESULTS :
The working results of the Company for the Year under review are
summarised and furnished below :-
Rs. In Lacs
Sales and Other Receipts 635.14
Other Income 154.68
Total Receipts 789.82
Gross Profit before interest and Depreciation 183.33
Less: Interest 15.22
Profit before Depreciation 168.11
Less : Depreciation 138.47
Net Profit for the Year 29.64
Add : Deffered Tax 26.44
Add : Opening balance - Loss brought forward 1364.06
Total Loss taken to P & L A/c 1307.98
REVIEW OF OPERATONS :
During the year under review, the Company achieved production in
Fabric, measuring 13.68 Lakh Metres as against 9.80 Lakh Metres in the
previous year. The yam produced by the Company at the Open End Spinning
Unit was 2.47 Lakh Kgs. against 2.01 Lakh Kgs in last year. The Fabric
sales value realised was at Rs. 453.50 Lakhs as against Rs. 286.71
Lakhs in the last year. The Company sold 2.68 Lakh Kgs of yarn (1.80
Lakhs in the last year), yielding a turnover of Rs. 128.65 Lakhs (Rs.
77.82 Lakhs in the last year). The Company did conversion of yarn into
fabric for third Parties and earned income by way of conversion charges
amounting to Rs. 44.29 Lakhs (Rs. 42.93 Lakhs in the last Year). The
company earned a commission of Rs. 34.22 lakhs by other activities and
interest reversal due to settlement of loan to The Catholic Syrian Bank
Ltd. to the tune of Rs. 91.40 lakhs and other interest reversal of Rs.
29.06 which has been included in other income. The overall sales and
other income of the Company was Rs. 765.42 Lakhs as against Rs. 371.301
Lakhs in the last year. During the year, the Directors have paid to The
Catholic Syrian Bank Ltd. Rs. 33.34 Lakhs as per aggrement.
On account of continuos recession in tthe economy and in particular in
the textile industry, the Volume of Producttion and Sales remained Very
low. The Company continued to incur high cost of Fixed Overheads
represented mainly by Depreciation of Fixed Assets
The company has earned a commission of Rs. 34.22 lakhs during the year
from Electrosteel castings limited towards order placed with them for
Engineering Projects (India) Ltd for supply of Ductile Iron Pipes for a
value of Rs. 171.41 lakhs
PROSPECTS :
As the industrial recession continues to grip the whole nation and also
many Asian Countries, there may not be any improvement in the
performance of the company in the current year.
The Directors are evaluating various options to improve the performance
of the Company with reference to sales and profitability. Unless the
Company could secure remunerative prices for fabrics with improvement
in quality of yam, the working results may not be profitable.
The Company is earning commission as the previous contract with
Electosteel Casting Ltd. is in progress during the current year and
negotations are on for future contract
DIRECTORS :
M/s. V.R. Gupta retires by rotation and offers himself for
re-electtion.
Mr. V.R Venkateswaran, does not wish to offer for re-election due to
his pre-occupation. The Board wishes to place on record his valuable
services and guidance tendered during the period of his service to the
company as director.
In his place Miss C.R. Padma has given consent to act as director of
the company. She is M.Com, FCS, BL & Research Scholar, Company
Secretary in practice by profession having 14 years experience in
corporate administrative, legal & finance matters. A notice under
Section 257 along with a deposit of required sum is already been placed
by Mr. A.K. Gupta, in his capacity as one of the members of the
company for the tenure of his election. Your directors recommend these
resolutions for your approval
DEPOSITS :
Your Company has accepted deposits from Directors, their relatives,
friends and associates without extending invitation. As at the close
of the year, there were no amounts remaining unclaimed.
PARTICULARS AS PER SECTION 217 OF THE COMPANIES ACT, 1956 :
217 (1) (e) - A statement on conservation of energy, technology
absorption and foreign exchange earning and outgo have been furnished
by way of Annexure to this Report.
217 (2A) There was no employees of the Company who has drawn the
prescribed salary during the year under review.
DIRECTORS RESPONSIBILITY STATEMENT :
The Directors of the Company confirm the following, subject to the fact
that your company is a Sick Industrial Company within the meaning of
the Sick Industrial Companies (Special Provision) Act. 1985 :
i. that in the preparation of annual accounts, the applicable
accounting standards had been followed and there is no material
departure from the said standards :
ii. that the Directors had selected such accounting policies and made
judgements 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 and loss of the Company for
that period :
iii. that the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act in safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities :
iv. that the Director had prepared the annual accounts on a going
concern basis.
AUDITORS
M/s. Anjana & Co., Chartered Accountants, Coimbatore, the retiring
Auditors are eligible for reappointment. A certificate under Section
224(1B) of the Companies Act, 1956 has been obtained from them
confirming their eligibility for reappointment.
STATUS OF THE COMPANY UNDER SICA :
Your companys restructuring plan has been approved by the BIFR on
1-10-2002 and your directors are regular in sending the quarterly
reports based on the plan to the Operating Agencies and to the BIFR. As
and addendum to the restructure plan, a reduction of capital to the
extend of Rs. 4.8 crs has been proposed to be made in the pursuing AGM,
with your approval.
AUDIT COMMITTEE
Pursuant to provision of Section 292A of the Companies Act. 1956, the
audit committee constituted last year comprising of Sri V.R. Gupta,
Sri. K. Venkata subramaniam, Sri. V.P. Venkateswaran, has met,
discussed and given useful suggestions in the implementation of the
accounting standards and the quickening process of internal check and
audit.
STOCK EXCHANGES :
Your company is listed with Coimbatore, Mumbai, Calcutta and Delhi
Stock Exchanges.
The first Corporate Governance Report of your company as on 31-3-2003
is enclosed for your perusal as Annexure - II
ACKNOWLEDGEMENT :
The Board wishes to place on record of their appreciation for the good
work done by the employees of the company. It takes the pleasure of
recording the services rendered by the O A and BIFR for and on the
revamping exercise of the company.
On behalf of the Board
V.R. GUPTA
Chairman
Place : Coimbatore
Date : 31.05.2003
Mar 31, 2002
The directors are hereby presenting the Nineth Annual Report together
with the Audited Balance Sheet of the Company as at 31st March, 2002
and the Profit & Loss Account for the Year ended on that date.
WORKING RESULTS :
The working results of the Company for the Year under review are
summarised and furnished below ;-
Rs. In Lacs
Sales and Other Receipts 369.52
Other Income 1.79
Total Receipts 317.31
Gross Profit before interest and Depreciation 22.34
Less : Interest on Term Loans 28.52
Profit before Depreciation (6.18)
Less: Depreciation 138.08
Net Loss for the Year (144.26)
Add : Deffered Tax 19.59
Add : Opening balance - Loss brought forward (1054.34)
Total Loss carried ove (1179.01)
REVIEW OF OPERATONS :
During the year under review, the Company achieved production in
Fabric, measuring 9.80 Lakh Metres as against 10.27 Lakh Metres in the
previous year. The yarn produced by the Company at the Open End
Spinning Unit was 2.01 Lakh Kgs. against 1.63 Lakh Kgs in last year.
The Fabric sales value realised was at Rs. 286.71 Lakhs as against Rs.
253.02 Lakhs in the last year. The Company sold 1.80 Lakh Kgs of yarn
(1.96 Lakhs in the last year), yielding a turnover of Rs.77.82 Lakhs
(Rs. 93.18 Lakhs in the last year). The Company did conversion of yarn
into fabric for third Parties and earned income by way of conversion
charges amounting to Rs. 42.93 Lakhs (Rs. 65.68 Lakhs in the last
Year). The overall sales and other income of the Company was Rs.
371.301 Lakhs as against Rs. 718.40 Lakhs in the last year. During the
year, the Directors have paid to The Catholic Syrian Bank Ltd. Rs.66.67
lakhs as per agreement.
On account of continuous recession in the economy and in particular in
the textile industry, the volume of Production and Sales remained very
low. The Company continued to incur high cost of Fixed Overheads
represented mainly by the interest on the Term Loans borrowed for the
Project and Depreciation of Fixed Assets.
PROSPECTS :
As the industrial recession continues to grip the whole nation and also
many Asian Countries, there may not be any improvement in the
performance of the company in the current year.
The Directors are evaluating various options to improve the performance
of the Company with reference to sales and profitability. Unless the
Company could secure remunerative prices for fabrics with improvement
in quality of yarn, the working results may not be profitable.
DIRECTORS :
Mr. K. Venkatsubramaniam, the retiring Director being eligible for
reappointment, offers himself for reappointment. Also Mr.
Ravindrakumar R. the additional director is retiring in forthcoming
meeting, offer himself for election as a director and a notice under
section 257 alongwith the prescribed deposit has already been received
from one of the shareholder of the company.
DEPOSITS :
Your Company has accepted deposits from Directors, their relatives,
friends and associates without extending invitation. As at the close
of the year,there were no amounts remaining unclaimed.
PARTICULARS AS PER SECTION 217 OF THE COMPANIES ACT, 1956 :
217 (1) (e) - A statement on conservation of energy, technology
absorption and foreign exchange earning and outgo have been furnished
by way of Annexure to this Report.
217 (2A) There was no employees of the Company who has drawn the
prescribed salary during the year under review.
AUDITORS
M/s. Anjana & Co., Chartered Accountants, Coimbatore, the retiring
Auditors are eligible for reappointment. A certificate under Section
224(1B) of the Companies Act, 1956 has been obtained from them
confirming their eligibility for reappointment.
APPLICATION OF THE PROVISIONS OF THE SICK INDUSTRIAL COMPANIES (SPECIAL
PROVISIONS) ACT. 1985 :
As reported in last year Balance Sheet, IIBI held the meeting on
28.8.2001 and submitted its final rehabilitrtion scheme to BIFR which
has circulated the same and hearing is to be held on 01.10.2002.
AUDIT COMMITTEE
Pursuant to provision of Section 292A of the Companies Act. 1956, your
Directors have constituted an Audit Committee. comprising of the
following Directors :
Sri. V.R. Gupta, Sri K. Venkata subramaniam, Sri V.P. Venkateswaran
DIRECTORS RESPONSIBILITY STATEMENT :
The Directors of the Company confirm the following, subject to the fact
that your company is a Sick Industrial Company within the meaning of
the Sick Industrial Companies (Special Provision) Act. 1985 :
i. that in the preparation of annual accounts, the applicable
accounting standards had been followed and there is no material
departure from the said standards :
ii. that the Directors had selected such accounting policies and made
judgements 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 and loss of the Company for
that period :
iii. that the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act in safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities:
iv. that the Director had prepared the annual accounts on a going
concern basis.
STOCK EXCHANGES :
Your company is listed with Coimbatore, Mumbai, Calcutta and Delhi
Stock Exchanges.
The applicability of corporate governance to the company is within 31
st March 2003. Your company has alaready taken steps to comply with the
same in the current year.
ACKNOWLEDGEMENT:
The Board also wish to place on record of their appreciation for the
good work done by the employees of the company.
On behalf of the Board
V.R. GUPTA
Chairman
Place : Coimbatore
Date : 31.07.2002
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article