Mar 31, 2012
The Directors have pleasure in presenting the 40th Annual Accounts of
the Company for the financial year ended 31st March, 2012.
Amount in Rs. Lacs
Year Year
Particulars ended ended
31.03.2012 31.03.2011
Sale value of production 508 1674
Gross profit/(loss) (213) 404
Interest 591 589
Cash loss 804 185
Depreciation & write off 130 132
Loss before tax 934 317
Loss after tax 934 317
Dividend - -
DIVIDEND
In view of the operating loss suffered by the Company during the period
under report, your Directors are not in a position to recommend any
dividend for the year 2011-12.
PRODUCTION AND SALES
The Company has not been operating its Uppal (Hyderabad) plant since
May 2000 and at present only its Silvassa plant is working. As the
banks suspended all the credit facilities earlier made available, the
Company revised its business strategy by accepting and executing job
orders. This is reflected in continuance of business in spite of
absence of working capital facilities.
REFERENCE TO BIFR
The Company was declared as a sick industrial undertaking by BIFR in
September, 2001 and Industrial Development Bank of India (IDBI) was
appointed as the "Operating Agency" to examine the viability of the
Company and formulate a scheme for its revival. As required, the
Company submitted its Rehabilitation Proposal to IDBI and others in
November, 2001 for their consideration. After a series of discussion,
at the instance of the lending institutions, the Company submitted its
revised Rehabilitation Proposal in October, 2003 and requested the
institutions for its early consideration. After examining the proposal
and further discussion, the Lenders initially gave time to the Company
upto 30th September, 2004, which was later on extended upto 30th June,
2005, to show significant operational improvement in its performance.
The Lenders also advised the Company to look into the possibility of
one-time settlement of dues and the Company earnestly has pursued the
matter with the Lenders BIFR vide its order dated 14.09.2007 confirmed
its opinion of winding up in terms of Section 20(1) of the Sick
Industrial Companies (Special Provisions) Act.
The Company preferred an appeal and got stayed the aforesaid Order. In
the meantime, the Company's efforts to make a breakthrough in the
matter has borne fruit and IDBI, SASF,UTI, Canara Bank & Syndicate Bank
have since indicated their willingness for one-time settlement of their
dues and the modalities are being worked out. It is hoped that with the
improvement in the power scenario due to reforms, the situation is
expected to turn-around in favour of the Company.
DIRECTORS
In terms of Articles of Association of the Company, Shri. M.C. Galada
retires by rotation and is eligible for re-appointment.
AUDITORS
M/s. Brahmayya & Co, Chartered Accountants retire at the ensuing Annual
General Meeting and are eligible for re-appointment.
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to Section 217 (2AA) of the Companies Act 1956 inserted vide
the Companies (Amendment) Act, 2000, the Directors confirm that:
1. In the preparation of Annual Accounts, the applicable accounting
standards have been followed.
2. Appropriate accounting policies have been selected and applied
consistently and judgement and estimates have been made that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company as at 31st March, 2012 and of the loss for
the year 1st April, 2011 to 31st March, 2012.
3. 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.
4. The Annual Accounts have been prepared on a going concern basis.
AUDITOR'S REPORT
As regards observations at para 6, we submit that:
1. Due to liquidity constraints, dividend declared for the year
1995-96 has not been fully distributed and the same is being suitably
dealt with in rehabilitation proposal..
2. Additional interest/liquidated damages payable to Financial
Institutions and others are not provided as the Company has sought
waiver of these amounts from the Institutions.
3. Interest on working capital demand loan has not been provided from
the date of initiation of legal proceedings by Banks. As regards
observations at para 9(b) forming part of Annexure to Auditor's Report,
we submit that the payment of arrears of sales tax and property tax is
being suitably dealt with in the Rehabilitation Package/OTS proposal.
As regards the re-appointment of Executive Director and Managing
Director, we submit that the re-appointments were made on the same
terms and conditions stipulated on 30.11.1994 and no increase
whatsoever was considered pending the complete turn-around of the
Company. As regards observations in the Corporate Governance
Certificate, we submit that the issue of composition of the Board is
dealt with in our report on Corporate Governance for the year 2011-12.
PERSONNEL
Your Directors wish to place on record their appreciation for the
devoted services rendered by employees at all levels.
OTHER INFORMATION
Information required by the Companies (Amendment) Act, 1988 is given in
Annexure-I forming part of this Report along with Corporate Governance
& Management Discussion and Analysis.
ACKNOWLEDGEMENTS
The Board of Directors would like to place on record their deep
appreciation and sincere thanks for the continued cooperation,
guidance, support and assistance provided during the period under
review by all the stake holders.
By order of the Board
D.C. Galada Devendra Galada
Managing Director Executive Director
Place : Hyderabad
Date : 30.06.2012
Mar 31, 2010
The Directors have pleasure in presenting the 38th Annual Accounts of
the Company for the financial year ended 31st March, 2010.
Amount in Rs.Lacs
Particulars Year Year
ended ended
31.03.2010 31.03.2009
Sale value of production 2246 3441
Gross profit/(loss) 317 (135)
Interest 596 679
Cash loss 279 814
Depreciation & write off 326 176
Loss before tax 605 990
Fringe benefit tax - 4
Loss after tax 605 994
Dividend - -
DIVIDEND
In view of the operating loss suffered by the Company during the period
under report, your Directors are not in a position to recommend any
dividend for the year 2009-10.
PRODUCTION AND SALES
The Company has not been operating its Uppal (Hyderabad) plant since
May 2000 and at present only its Silvassa plant is working. As the
banks suspended all the credit facilities earlier made available, the
Company revised its business strategy by accepting and executing job
orders. This is reflected in continuance of business in spite of
absence of working capital facilities.
REFERENCE TO BIFR
The Company was declared as a sick industrial undertaking by BIFR in
September, 2001 and Industrial Development Bank of India (IDBI) was
appointed as the "Operating Agency" to examine the viability of the
Company and formulate a scheme for its revival. As required, the
Company submitted its Rehabilitation Proposal to IDBI and others in
November, 2001 for their consideration. After a series of discussion,
at the instance of the lending institutions, the Company submitted its
revised Rehabilitation Proposal in October, 2003 and requested the
institutions for its early consideration. After examining the proposal
and further discussion, the Lenders initially gave time to the Company
upto 30th September, 2004, which was later on extended upto 30th June,
2005, to show significant operational improvement in its performance.
The Lenders also advised the Company to look into the possibility of
one-time settlement of dues and the Company earnestly pursued the
matter with the Lenders
BIFR vide its order dated 14.09.2007 confirmed its opinion of winding
up in terms of Section 20(1) of the Sick Industrial Companies (Special
Provisions) Act. Which is at present stayed.
In the meantime, the Companys efforts to make a break through in the
matter has borne fruit and IDBI, SASF.UTI, Canara Bank & Syndicate Bank
have since indicated their willingness for one-time settlement of their
dues and the modalities are being worked out. Similarly, the Company is
making efforts to settle the dues of other lending institutions. It is
hoped that with the improvement in the power scenario due to reforms,
the situation is expected to turn- around in favour of the Company.
DIRECTORS
In terms of Articles of Association of the Company,
Shri.T.B.Subramaniam retires by rotation and is eligible for
re-appointment.
AUDITORS
M/s.Brahmayya & Co, Chartered Accountants retire at the ensuing Annual
General Meeting and are eligible for re-appointment.
DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to Section 217 (2AA) of the Companies Act 1956, inserted vide
the Companies (Amendment) Act, 2000, the Directors confirm that:
1. In the preparation of Annual Accounts, the applicable accounting
standards have been followed.
2. Appropriate accounting policies have been selected and applied
consistently and judgement and estimates have been made that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company as at 31st March, 2010 and of the loss for
the year 1st April, 2009 to 31st March, 2010.
3. 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.
4. The Annual Accounts have been prepared on a going concern basis.
AUDITORS REPORT
As regards observations at para 6, we submit that:
1. Due to liquidity constraints, dividend declared for the year
1995-96 has not been fully distributed and the same will be regularized
in due course.
2. Additional interest / liquidated damages payable to Financial
Institutions and others are not provided as the Company has sought
waiver of these amounts from the Institutions.
3. Interest on working capital demand loan has not been provided from
the date of initiation of legal proceedings by Banks.
As regards observations at para 9(b) forming part of Annexure to
Auditors Report, we submit that the payment of arrears of sales tax
and property tax is being suitably dealt with in the Rehabilitation
Package / OTS proposal. As regards the re-appointment of Executive
Director and Managing Director, we submit that the re-appointments were
made on the same terms and conditions stipulated on 30.11.1994 and no
increase whatsoever was considered pending the complete turn-around of
the Company.
As regards observations in the Corporate Governance Certificate, we
submit that the issue of composition of the Board is dealt with in our
report on Corporate Governance for the year 2009-10.
PERSONNEL
Your Directors wish to place on record their appreciation for the
devoted services rendered by employees at all levels.
OTHER INFORMATION
Information required by the Companies (Amendment) Act, 1988 is given in
Annexure- I forming part of this Report along with Corporate Governance
& Management Discussion and Analysis.
ACKNOWLEDGEMENTS
The Board of Directors would like to place on record their deep
appreciation and sincere thanks for the continued cooperation,
guidance, support and assistance provided during the period under
review by all the stake holders.
By order of the Board
Sd/- Sd/-
D.C.Galada Devendra Galada
Managing
Director Executive Direc
tor
Place : Hyderabad
Date :26th June 2010
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