Sep 30, 2014
Dear Shareholders,
The Directors present their Twenty Fourth Annual Report and Audited
accounts for the year ended 30th September, 2014.
FINANCIALS
Your Company''s financial performance was as follows : Rs./lacs
Particulars 30.09.2014 30.09.2013
Profit before Interest, Depreciation
and Tax 318.61 1195.88
Less: Interest 930.81 920.16
Gross Profit/ (Loss) for the Year (612.20) 275.72
Less: Depreciation 373.32 386.66
Profit/(Loss) Before Tax (985.52) (110.94)
Less : Provision for Tax - -
Profit / (Loss) After Taxation (985.52) (110.94)
Balance Brought Forward from
last Account (6645.49) (6534.55)
Balance Carried to Balance Sheet (7631.01) (6645.49)
DIVIDEND
The Directors of your Company do not recommend any dividend for the
year under review.
OPERATIONS
Current year started with cotton prices ruling quite high and yarn
prices were not able to keep pace with increase in raw material prices.
In the second half of the year, the cotton prices started to decline
and the future markets indicated further decline in cotton prices and
this led to sentiments of extreme weakness resulting in decline of yarn
prices. The yarn prices kept pace with the cotton prices in future
market, rather than the current market prices which were higher. The
incentives announced by various state governments has resulted in
expansion and set up of new units, which have resulted in excess
supply. These factors resulted in huge losses.
FINANCE
During the year under review, the long term borrowings and short term
borrowings of the Company stands at ^434.35 Lakhs and ^5573.44 Lakhs
respectively as on 30th September, 2014.
REFERENCE TO THE BOARD OF INDUSTRIAL AND FINANCIAL RECONSTRUCTION
The accumulated losses of the Company at the end of financial year
September 30, 2014, have resulted in erosion of 100% of its peak net
worth in the current year. The Company''s reference bearing no.06/2013
filed with Board for Industrial and Financial Reconstruction under
Section 15(1) of the Sick Industrial Companies (Special Provisions)
Act, 1985 for the year ended 30th September, 2012 is still pending and
therefore the Board has decided not to file any fresh reference under
Section 15(1) of the Sick Industrial Companies (Special Provisions)
Act, 1985 in the current year.
The Company''s appeal under Section 25(1) of the Sick Industrial
Companies (Special Provisions) Act,1985 against the order passed by the
BIFR for reference no.3/2012 filed u/s 15(1) of the SICA,1985 on
13/01/2012 is in final hearing stage.
DIRECTORS
Mr. Susanta Banerjee(DIN:01173116), Director of the Company, retires by
rotation at the ensuing Annual General Meeting and being eligible,
offers himself for re-appointment.
Pursuant to Section 161 (1) of the Companies Act, 2013 and Article 82
of the Articles of Association of the Company, Ms. Puja Borar (DIN:
06873157), who was appointed as an Additional Director designated as an
Independent Director with effect from 12th August 2014 and shall hold
office up to the date of the ensuing Annual General Meeting. The
Company has received requisite notice in writing from a member
proposing Ms. Puja Borar for appointment as an Independent Director.
As per the provisions of Section 149 and other applicable provisions of
the Companies Act, 2013, Mr. Krishna Kumar Gupta (DIN: 06657407) and
Ms. Puja Borar (DIN: 06873157), directors of the Company, are being
appointed as Independent Directors for five consecutive years from the
conclusion of this Annual General Meeting not liable to retire by
rotation.
Subject to the approval of the shareholders in the general meeting and
the Central Government, the Board of Directors on 29th November 2014
re-appointed Mr. Umang Kanoria (DIN: 00081108), as the Managing
Director of the Company for a period of three years with effect from
1st January, 2015 on the terms and conditions agreed to by the Board of
Directors and Mr. Umang Kanoria.
The Company has received declarations from the Independent Directors of
the Company confirming that they meet with the criteria of independence
as prescribed both under sub-section (6) of Section 149 of the
Companies Act, 2013 read with the Companies (Appointment and
Qualification of Directors) Rules, 2014 and Clause 49 of the Listing
Agreement. The Company has also received intimation in Form DIR-8 under
Section 164(2) of the Companies Act, 2013 read with rules made
thereunder from its Directors.
Necessary resolutions for the appointment/re-appointment of the
aforesaid directors have been included in the notice convening the
ensuing AGM and details of the proposal for appointment /
re-appointment are mentioned in the explanatory statement of the
notice.
Mr. Atul Doshi has tendered his resignation from the Directorship of
the Company with effect from 27th November 2014, due to his
preoccupation and inability to devote time to discharge his
responsibilities. The Board of Directors in their meeting took note of
the same and placed their appreciation of the valuable contribution
made by him.
DIRECTORS'' RESPONSIBILITY STATEMENT
In terms of Section 217(2AA) of the Companies Act, 1956, your Directors
confirm that:
(i) in the preparation of the Annual Accounts for the financial year
ended 30th September, 2014, the applicable accounting standards have
been followed along with proper explanation relating to material
departures.
(ii) they have selected such Accounting Policies and applied them
consistently and made judgements and estimates that they 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 Financial Year and of the profit or loss
of the Company for that period.
(iii) they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of this
Act for safeguarding the assets of your Company and for preventing and
detecting fraud and other irregularities; and
(iv) they have prepared the annual accounts for 30th September, 2014 on
a going concern basis.
PUBLIC DEPOSITS
The Company did not accept any deposit under Section 58A of the
Companies Act 1956, during the year under review.
AUDITORS & AUDITORS'' REPORT
Messrs B. R. Shah & Associates, Chartered Accountants, (Registration
No. 129053W), retire at the ensuing Annual General Meeting and being
eligible, have expressed their willingness to continue as Auditors of
the Company, if so appointed by the members. Your Company has received
the consent and certificate from Messrs. B. R. Shah & Associates,
Chartered Accountants to the effect that their re-appointment if made,
would be within the limits prescribed under the Section 141 of the
Companies Act, 2013 read with rules and that they are not disqualified
for reappointment within the meaning of Section 141 of the Companies
Act 2013. They have also confirmed that they hold a valid peer review
certificate as prescribed under Clause 41(1) (h) of the Listing
Agreement.
The Auditors'' have qualified their Report and the explanation in this
regard forms part of the Annexure to Directors'' Report.
COST AUDIT
The Cost Audit Report for the financial year ended 30th September 2013
was filed with the Ministry of Corporate Affairs on 13th March 2014,
due date being 29th March 2014.
REPORTS ON CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION & ANALYSIS
REPORT
Your Company has fully complied with the requirements of Clause 49 of
the Listing Agreement regarding Corporate Governance. Report on
Corporate Governance Practices, the Auditors'' Certificate on compliance
of mandatory requirements thereof and Report on Management Discussion &
Analysis Report are given as annexure and forms part of this report.
EMPLOYEE PARTICULARS
The particulars of employees pursuant to Section 217 (2A) of the
Companies Act, 1956 read with the Companies (Particulars of Employees)
Rule 1975, as amended by Companies(Particulars of Employees)Amendment
Rules 2011, are not applicable as no employee was in receipt of
remuneration to the extent laid down in the said Rules.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
A statement pursuant to Section 217(1) (e) of the Companies Act, 1956
read with the Companies (Disclosure of Particulars in the Report of
Directors) Rules, 1988 on conservation of energy, technology
absorption, foreign exchange earnings and outgo is annexed to and forms
part of this Report.
ACKNOWLEDGEMENT
Your Directors place on record their appreciation for the cooperation
and support extended by the Employees, Banks/ Financial Institutions
and all other business partners.
For and on behalf of the Board
Kolkata, U. KANORIA
November 29, 2014 Chairman & Mg. Director
Sep 30, 2013
The Directors present their Twenty Third Annual Report and Audited
accounts for the year ended 30th September, 2013.
FINANCIALS
Your Company''s financial performance was as follows :
Rs./lacs
30.9.2013 30.9.2012
Profit/(Loss) Before Interest,
Depreciation and Tax 1195.88 295.93
Less: Interest 920.16 911.11
Gross Profit/(Loss) for the year 275.72 (615.18)
Less: Depreciation 386.66 415.32
Profit/(Loss) Before Taxation (110.94) (1030.50)
Less : Provision for Tax
Profit/(Loss) After Taxation (110.94) (1030.50)
Balance Brought Forward from Last Account (6534.55) (5504.05)
Balance Carried to Balance Sheet (6645.49) (6534.55)
DIVIDEND
The Directors of your Company do not recommend any dividend for the
year under review.
OPERATIONS
The Company started the year under review under severe financial stress
due to unprecedented losses incurred in the previous accounting year.
Yarn realisations improved marginally from an average of Rs. 182.93 in
Sept, 2012 to 204.47 in Sept, 2013. Average Cotton prices increased
from an average of Rs. 34,500/ per candy in the beginning of the season
to £47,000/ per candy towards the end of season. Improvement in demand
and higher realizations helped in curtailing the losses. The Company''s
normal operation is severely affected by liquidity crunch faced by it.
FINANCE
During the year under review, the long term borrowings and short term
borrowings of the Company stands at Rs. 434.35 Lakhs and Rs. 4618.93 Lakhs
respectively as on 30th September, 2013.
REFERENCE TO THE BOARD OF INDUSTRIAL AND FINANCIAL RECONSTRUCTION
The accumulated losses of the Company at the end of financial year
September 30, 2013, have resulted in erosion of 100% of its peak net
worth in the current year. The Company''s reference bearing no.06/2013
filed with Board for Industrial and Financial Reconstruction under
Section 15(1) of the Sick Industrial Companies (Special Provisions)
Act, 1985 for the year ended 30th September, 2012 is still pending and
therefore the Board has decided not to file any fresh reference under
Section 15(1) of the Sick Industrial Companies (Special Provisions)
Act, 1985 in the current year.
The Company''s appeal under Section 25(1) of the Sick Industrial
Companies (Special Provisions) Act,1985 against the order passed by the
BIFR for reference no.3/2012 filed u/s 15(1) of the SICA,1985 on
13/01/2012 is in final hearing stage.
DIRECTORS
Mr. Atul Doshi, Director of the Company, retires by rotation at the
ensuing Annual General Meeting and being eligible, offers himself for
re appointment.
During the year under review, Mr. Susanta Banerjee and Mr. Krishna
Kumar Gupta were appointed as Additional Directors of your Company with
effect from 26th June 2013 and 13th August 2013 respectively. They
shall hold office up to the date of the ensuing Annual General Meeting
of your Company. Your Company has received individual notices from
Members pursuant to Section 257 of the Companies Act, 1956, signifying
their intention to propose the candidatures of Mr. Susanta Banerjee and
Mr. Krishna Kumar Gupta for the office of Directors. The Board
recommends their appointment as Directors of your Company.
Mr. Golam Momen, Mr. Pavan Kumar Poddar and Mr. Parag Keshar
Bhattacharjee have tendered their resignations and the Board in their
meeting took note of the same and placed their appreciation of the
valuable contributions made by them.
DIRECTORS'' RESPONSIBILITY STATEMENT
In terms of Section 217(2AA) of the Companies Act, 1956, your Directors
confirm that:
(i) in the preparation of the Annual Accounts for the financial year
ended 30th September, 2013, the applicable accounting standards have
been followed along with proper explanation relating to material
departures
(ii) they have selected such Accounting Policies and applied them
consistently and made judgements and estimates that they 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 Financial Year and of the profit or loss
of the Company for that period.
(iii) they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of this
Act for safeguarding the assets of your Company and for preventing and
detecting fraud and other irregularities; and
(iv) they have prepared the annual accounts for 30th September, 2013 on
a going concern basis.
PUBLIC DEPOSITS
The Company did not accept any deposit under Section 58A of the
Companies Act 1956, during the year under review.
AUDITORS & AUDITORS'' REPORT
Messrs B. R. Shah & Associates, Chartered Accountants, (Registration
No. 129053W), Statutory Auditors of the Company, retire at the
conclusion of the ensuing Annual General Meeting and have confirmed
their eligibility and willingness to accept the office of Auditors, if
re appointed. Your Company has received a confirmation from Messrs B.
R. Shah & Associates, Chartered Accountants to the effect that their
re appointment if made, would be within the limits prescribed under
Section 224(1 B) of the Companies Act 1956 and that they are not
disqualified for reappointment within the meaning of Section 226 of the
Act. They have also confirmed that they hold a valid peer review
certificate as prescribed under Clause 41 (1) (h) of the Listing
Agreement.
The Auditors'' have qualified their Report and the explanation in this
regard forms part of the Annexure to Directors'' Report.
COST AUDIT
As stipulated by the Central Government and pursuant to Section 233B of
the Companies Act, 1956, Cost Audit of the records relating to the
Textile Business of the Company is carried out from 1998 1999 onwards.
Messrs N.D. Birla & Co., Cost Accountants, of A 3, Nirant Society,
Opposite Town Hall, Near Karnavati Hospital, Ellisbridge, Ahmedabad
380 006 (Registration No. of the Firm : 000028) has been re appointed
as the Cost Auditor of the Company to carry out the Cost Audit for the
next financial year. The Cost Audit Report for the financial year ended
30th September 2012 was filed with the Ministry of Corporate Affairs on
4th March 2013, due date being 29th March 2013. REPORTS ON CORPORATE
GOVERNANCE AND MANAGEMENT DISCUSSION & ANALYSIS REPORT Your Company has
fully complied with the requirements of Clause 49 of the Listing
Agreement regarding Corporate Governance. Report on Corporate
Governance Practices, the Auditors'' Certificate on compliance of
mandatory requirements thereof and Report on Management Discussion &
Analysis Report are given as annexure and forms part of this report.
EMPLOYEE PARTICULARS
The particulars of employees pursuant to Section 217 (2A) of the
Companies Act, 1956 read with the Companies (Particulars of
Employees)Rule 1975, as amended by Companies (Particulars of Employees)
Amendment Rules 2011, are not applicable as no employee was in receipt
of remuneration to the extent laid down in the said Rules.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
A statement pursuant to Section 217(1) (e) of the Companies Act, 1956
read with the Companies (Disclosure of Particulars in the Report of
Directors) Rules, 1988 on conservation of energy, technology
absorption, foreign exchange earnings and outgo is annexed to and forms
part of this Report.
ACKNOWLEDGEMENT
Your Directors place on record their appreciation for the cooperation
and support extended by the Employees, Banks/ Financial Institutions
and all other business partners.
For and on behalf of the Board
Kolkata, U. KANORIA
November 27, 2013 Chairman
Sep 30, 2012
Dear Shareholders,
The Directors present their Twenty Second Annual Report and Audited
Accounts for the year ended 30th September, 2012.
FINANCIALS
Your Company''s financial performance was as follows :
30.9.2012 30.9.2011
(Rs. in lacs) (Rs. in lacs)
(12 Months) (6 Months)
Profit/(Loss)Before
Interest,Depreciationand Tax 295.93 (1307.12)
Less: Interest 911.11 340.68
Gross Profit/(Loss) for the year ( 615.18) (1647.80)
Less: Depreciation 415.32 225.36
Profit/(Loss)Before Taxation (1030.50) (1873.16)
Less : Provision for -
Net Current Tax
Deferred Tax (1300.45)
Profit/(Loss) After Taxation (1030.50) (3173.61)
Balance Brought Forward from Last Account (5504.05) (2330.44)
Balance Carried to Balance Sheet (6534.55) (5504.05)
DIVIDEND
The Directors of your Company do not recommend any dividend for the
year under review.
OPERATIONS
The Company started the year under review under severe financial stress
due to unprecedented losses incurred in the previous accounting year.
Yarn realisations improved marginally from an average of f 178.46 in
Sept, 2011 to f 182.93 in Sept, 2012. Average Cotton prices declined
from a high f 46,800/- per candy to f 36,300/- per candy. The decline
in raw material prices and marginal improvement in yarn realisations
helped in curtailing the losses. The improvement in demand helped in
better capacity utilisation. The plant is working at full capacity. The
Company expects further improvement in demand leading to improved
operations.
FINANCE
During the year under review, the long term borrowings and short term
borrowings of the Company stands at f 471.63 Lakhs and f 2628.98 Lakhs
respectively as on 30th September, 2012.
REFERENCE TO THE BOARD OF INDUSTRIAL AND FINANCIAL RECONSTRUCTION
The accumulated losses of the Company at the end of financial year
September 30, 2012, have resulted in erosion of 100% of its peak net
worth in the current year. The Board of Directors have formed an
opinion that the Company has become a sick industrial company and
therefore the Company shall make a fresh reference to the Board for
Industrial and Financial Reconstruction about such erosion of net worth
as envisaged under Section 15(1) of the Sick Industrial Companies
(Special Provisions) Act, 1985.
The Board of Directors have decided to prefer an appeal under Section
25(1) of the Sick Industrial Companies (Special Provisions) Act,1985
against the order passed by the BIFR for reference no.3/2012 filed u/s
15(1) of the SICA,1985 on 13.01.2012.
DIRECTORS
Mr. Parag Keshar Bhattacharjee and Mr. Pavan Kumar Poddar, Directors of
the Company, retire by rotation at the ensuing Annual General Meeting
and are eligible for re-election.
DIRECTORS'' RESPONSIBILITY STATEMENT
The Directors state that:
- Appropriate Accounting Standards as are applicable to the Annual
Statement of Accounts for the financial year ended 30th September, 2012
have been followed in preparation of the said accounts.
- The Directors have followed the accounting policies as described in
the Schedule 23 (Significant Accounting Policies and other Notes on
Accounts) and applied them consistently to facilitate true and fair
view of the state of affairs of the Company.
- Sufficient care has been taken to maintain accounting records of
the Company.
- The statement of accounts has been prepared on a going concern
basis.
AUDITORS
Messrs B. R. Shah & Associates, Chartered Accountants (Registration
No.129053W), retire at the conclusion of the 22nd Annual General
Meeting and being eligible, have expressed their willingness to
continue as Auditors of the Company, if so re-appointed by the members.
COST AUDIT
As stipulated by the Central Government and pursuant to Section 233B of
the Companies Act, 1956, Cost Audit of the records relating to the
Textile Business of the Company is carried out from 1998-1999 onwards.
Messrs N.D. Birla & Co., Cost Accountants, of A-3, Nirant Society,
Opposite Town Hall, Near Karnavati Hospital, Ellisbridge, Ahmedabad 380
006, has been re-appointed as the Cost Auditor of the Company to carry
out the Cost Audit for the next financial year.
EMPLOYEE PARTICULARS
The particulars of employees pursuant to Section 217 (2A) of the
Companies Act, 1956 read with the Companies (Disclosure of Particulars
in the Report of Board of Directors) Rules, 1988 are not applicable as
no employee was in receipt of remuneration to the extent laid down in
the said Rules.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
A statement pursuant to Section 217(1) (e) of the Companies Act, 1956
read with the Companies (Disclosure of Particulars in the Report of
Directors) Rules, 1988 on conservation of energy, technology
absorption, foreign exchange earnings and outgo is annexed to and forms
part of this Report.
ACKNOWLEDGEMENT
Your Directors place on record their appreciation for the cooperation
and support extended by the Employees, Banks/ Financial Institutions
and all other business partners.
For and on behalf of the Board
U. KANORIA
Kolkata, 29th
day of November, 2012 Chairman
Mar 31, 2011
Dear Shareholders,
The Directors present their Twentieth Annual Report and Audited
Accounts for the year ended 31 st March, 2011.
FINANCIALS
Your Companys financial performance was as follows :
2010-2011 2009-2010
(Rs. in lacs) (Rs. in lacs)
Profit Before Interest, Depreciation
and Tax 1089.44 117.81
Less: Interest 575.78 570.89
Gross Profit/(Loss) for the year 513.66 (453.08)
Less: Depreciation 453.66 497.21
Profit/(Loss) Before Taxation 60.00 (950.29)
Less : Provision for -
Net Current Tax - -
Deferred Tax 48.67 (13.53)
Profit/(Loss) After Taxation 11.33 (936.76)
Balance Brought Forward from Last
Account (2341.77) (1405.01)
Balance Carried to Balance Sheet (2330.44) (2341.77)
DIVIDEND
The Directors of your Company do not recommend any dividend for the
year under review.
OPERATIONS
The year started on a strong note with buoyant yarn prices. The Company
achieved a turnover of Rs 11989.86 Lakhs for the financial year.
Average sales realisation increased by 50.76%, as compared to a 46.14%
increase in average raw-material cost.
The year has seen unprecedented increase in both raw material and yarn
prices. Towards the end of the year, the Government imposed
restrictions on yarn exports, as a result of which sales quantity
declined by 14.46% to 55.96 lakhs Kgs. in 2010-11 from 65.42 lakhs Kgs.
in 2009-10.
Cotton prices moved up throughout the year. Prices moved up by
approximately 109% from Rs28,500/- per candy in April 2010 to Rs
59,600/- per candy in March 2011. However due to strong demand for
Yarn, both in domestic as well as export markets and improved Yarn
realisations the Company was able to post vastly improved results as
compared to last year.
The current year has started on a weak note with the industry carrying
large stocks on account of the restrictions imposed on export of cotton
yarn in the last quarter of 2010-11. The restrictions on export of
cotton yarn have now been lifted but with the large stocks being
carried by the industry, there is pressure on prices. It is expected to
take some time before this stock is liquidated and things return to
normal. The current year looks difficult and trying for the industry.
FINANCE
During the year under review, the Company repaid installments of Term
Loans amounting to Rs896.40 Lakhs, falling due during the current year.
The Long Term Debt of the Company stands at Rs2923.65 Lakhs as on 31st
March, 2011.
PREFERENTIAL ALLOTMENT OF SHARES
During the year under review, the Board of Directors of the Company
allotted 25,00,000 equity shares of Rs10/- each for a premium of Rs10A
per share, aggregating Rs5,00,00,000/- on 17th of August, 2010 on
Preferential basis as per SEBI (Issue of Capital and Disclosure
Requirements) Regulations, 2009 .
REFERENCE TO THE BOARD OF INDUSTRIAL AND FINANCIAL RECONSTRUCTION
The accumulated losses of the Company at the end of financial year
March 31, 2011 have resulted in erosion of more than 50 % of its peak
net worth during the immediately preceding four financial years. While
the Company is taking necessary steps to protect further erosion, the
Company will report to the Board for Industrial and Financial
Reconstruction about such erosion of net worth as envisaged under
Section 23 of the Sick Industrial Companies (Special Provisions) Act,
1985 forthwith upon finalization of audited accounts of the Company at
its Annual General Meeting.
DIRECTORS
Mr. Parag Keshar Bhattacharjee and Mr. Pavan Kumar Poddar, Directors of
the Company, retire by rotation at the ensuing Annual General Meeting
and are eligible for re-election. During the year, Mr. G.R. Basotia has
resigned from the directorship of the Company and Mr. Atul Doshi has
been inducted as an Additional Director.
CORPORATE GOVERNANCE & MANAGEMENT DISCUSSION AND ANALYSIS
A separate report on Corporate Governance along with Auditors
Certificate on its compliance is enclosed and forms part of this
Report. Management Discussion and Analysis Report forms a part of the
Annexure to the Directors Report.
DIRECTORS RESPONSIBILITY STATEMENT
The Directors state that:
- Appropriate Accounting Standards as are applicable to the Annual
Statement of Accounts for the financial year ended 31st March, 2011
have been followed in preparation of the said accounts.
- The Directors have followed the accounting policies as described in
the Schedule 19 (Notes on Accounts) and applied them consistently to
facilitate true and fair view of the state of affairs of the Company.
- Sufficient care has been taken to maintain accounting records of the
Company.
- The statement of accounts has been prepared on a going concern basis.
AUDITORS
Messrs B. R. Shah & Associates, Chartered Accountants, retire at the
conclusion of the 20th Annual General Meeting and being eligible, has
expressed their willingness to continue as Auditors of the Company, if
so appointed by the members.
COST AUDIT
As stipulated by the Central Government and pursuant to Section 233B of
the Companies Act, 1956, Cost Audit of the records relating to the
Textile Business of the Company is carried out from 1998-1999 onwards.
Messrs N.D. Birla & Co., Cost Accountants, of A-3, Nirant Society,
Opposite Town Hall, Near Karnavati Hospital, Ellisbridge, Ahmedabad -
380 006, has been appointed as the Cost Auditor of the Company to carry
out the Cost Audit for the year 2011 -12.
EMPLOYEE PARTICULARS
The particulars of employees pursuant to Section 217 (2A) of the
Companies Act, 1956 read with the Companies (Disclosure of Particulars
in the Report of Board of Directors) Rules, 1988 are not applicable as
no employee was in receipt of remuneration to the extent laid down in
the said Rules.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
A statement pursuant to Section 217(1) (e) of the Companies Act, 1956
read with the Companies (Disclosure of Particulars in the Report of
Directors) Rules, 1988 on conservation of energy, technology
absorption, foreign exchange earnings and outgo is annexed to and forms
part of this Report.
ACKNOWLEDGEMENT
Your Directors place on record their appreciation for the cooperation
and support extended by the Employees, Banks/ Financial Institutions
and all other business partners.
For and on behalf of the Board
U. KANORIA
Chairman
Kolkata, 13th day of May, 2011
Mar 31, 2010
The Directors present their Nineteenth Annual Report and Audited
Accounts for the year ended 31st March, 2010.
FINANCIALS
Your Companys financial performance was as follows :
2009-2010 2008-2009
(Rs.in lacs) (Rs.in lacs)
Profit Before Interest,
Depreciation and Tax 117.81 (3.23)
Less: Interest 570.89 614.89
Gross Profit for the year (453.08) (618.12)
Less: Depreciation 497.21 625.00
Profit/(Loss) Before Taxation (950.29) (1243.12)
Less : Provision for -
Net Current Tax - 0.84
Fringe Benefit Tax - 5.50
- 6.34
Add/Less: Deferred Tax 13.53 430.22
Profit/(Loss) After Taxation (936.76) (819.24)
Balance Brought Forward from Last Account (1405.01) (585.77)
Balance Carried to Balance Sheet (2341.77) (1405.01)
DIVIDEND
The Directors of your Company do not recommend any dividend for the
year under review.
DEMERGER
During the year under review, the Honble High Court of judicature at
Calcutta has approved the Scheme of Arrangement in the nature of
De-merger of the Tea Division of the Company. Accordingly the Tea
Division of the Company was de- merged and vested with Dhanvaridhi
Concerns Limited (since renamed as Kanco Tea & Industries Limited). The
appointed date for this de-merger was closing hours of 31st March,
2009. The shares of the resulting company shall be listed on the Stock
Exchanges.
REFERENCE TO THE BOARD OF INDUSTRIAL AND FINANCIAL RECONSTRUCTION
The accumulated losses of the Company at the end of financial year
March 31, 2010 have resulted in erosion of more than 50 % of its peak
net worth during the immediately preceding four financial years. While
the Company is taking necessary steps to protect further erosion, the
Company will report to the Board for Industrial and Financial
Reconstruction about such erosion of net worth as envisaged under
Section 23 of the Sick Industrial Companies (Special Provisions) Act,
1985 forthwith upon finalization of audited accounts of the Company at
its Annual General Meeting.
OPERATIONS
The First half of the year saw the industry facing difficult times.
With the progress of the year, there was an improvement with last
quarter of the year witnessing fairly strong revival. In view of
improved working conditions, production of yarn, increased by 28.82%
from 49.46 lakhs Kgs. in 2008-09 to 63.72 lakhs Kgs. in 2009-10. The
sales quantity also registered improvement of 28.37% from 50.95 lakhs
Kgs. in 2008-09 to 65.42 lakhs Kgs. in 2009-10. The Company achieved a
turnover of Rs.9741.12 Lakhs for the financial year.
The Cotton prices remained firm with an upward trend right through the
year. However, due to strong demand for yarn and improved realization
in the second half of the year, the Company was able to curtail losses
compared to the previous year.
The Industry is experiencing a revival of global demand coupled with
declining inventory. It is expected that the strong demand and improved
realisations will enable the Company to post vastly improved results in
the current year.
FINANCE
During the year under review, the Company repaid installments of Term
Loans amounting to Rs.534.45 Lakhs, falling due during the current
year. The Company also made fresh borrowings of Rs.1195.00 Lakhs for
funding working capital requirements. Long Term debts of the Company
stands at Rs.3820.05 Lakhs. The Companys proposal for restructuring
of its loans has been approved by State Bank of India.
DIRECTORS
Mr. Anil Kumar Jain and Mr. Golam Momen, Directors of the Company,
retire by rotation at the ensuing Annual General Meeting and are
eligible for re-election.
CORPORATE GOVERNANCE & MANAGEMENT DISCUSSION AND ANALYSIS
A separate report on Corporate Governance along with Auditors
Certificate on its compliance is enclosed and forms part of this
Report. Management Discussion and Analysis Report forms a part of the
Annexure to the Directors Report.
DIRECTORS RESPONSIBILITY STATEMENT
The Directors state that:
Appropriate Accounting Standards as are applicable to the Annual
Statement of Accounts for the financial year ended 31st March, 2010
have been followed in preparation of the said accounts.
. The Directors have followed the accounting policies as described in
the Schedule 21 (Notes on Accounts) and applied them consistently to
facilitate true and fair view of the state of affairs of the Company.
. Sufficient care has been taken to maintain accounting records of the
Company.
. The statement of accounts has been prepared on a going concern basis.
AUDITORS
Messrs B. R. Shah & Associates, Chartered Accountants, retire at the
conclusion of the 19th Annual General Meeting and being eligible, has
expressed their willingness to continue as Auditors of the Company, if
so appointed by the members.
COST AUDIT
As stipulated by the Central Government and pursuant to Section 233B of
the Companies Act, 1956, Cost Audit of the records relating to the
Textile Business of the Company is carried out from 1998-1999 onwards.
Messrs N.D. Birla & Co., Cost Accountants, Ahmedabad, has been
appointed as the Cost Auditor of the Company to carry out the Cost
Audit for the year 2009-10.
EMPLOYEE PARTICULARS
The particulars of employees pursuant to Section 217 (2A) of the
Companies Act, 1956 read with the Companies (Disclosure of Particulars
in the Report of Board of Directors) Rules, 1988 are not applicable as
no employee was in receipt of remuneration to the extent laid down in
the said Rules.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
A statement pursuant to Section 217(1) (e) of the Companies Act, 1956
read with the Companies (Disclosure of Particulars in the Report of
Directors) Rules, 1988 on conservation of energy, technology
absorption, foreign exchange earnings and outgo is annexed to and forms
part of this Report.
ACKNOWLEDGEMENT
Your Directors place on record their appreciation for the cooperation
and support extended by the Employees, Banks/ Financial Institutions
and all other business partners.
For and on behalf of the Board
U. KANORIA
Chairman
Kolkata, 21 st day of June, 2010
Mar 31, 2009
The Directors present their Eighteenth Annual Report and Audited
Accounts for the year ended 31 st March, 2009.
FINANCIALS
Your Companys financial performance was as follows :
2008-2009 2007-2008
(Rs. in lacs) (Rs. in lacs)
Profit Before Interest,
Depreciation and Tax (3.23) 471.45
Less: Interest 614.89 593.01
Gross Profit for the year (618.12) (121.56)
Less: Depreciation 625.00 647.64
Profit Before Tax (1,243.12) (769.20)
Less : Provision for -
Net Current Tax 0.84 0.22
Fringe Benefit Tax 5.50 8.63
Taxation for Earlier Years - 6.34 0.53 9.38
Add/Less: Deferred Tax 430.22 230.44
Add/Less: MAT Credit
Entitlement - 430.22 - 230.44
Profit/(Loss) After Taxation (819.24) (548.14)
Balance Brought Forward
from Last Account (585.77) (37.63)
Balance Carried to Balance
Sheet (1,405.01) (585.77)
DIVIDEND
In view of loss, the Directors do not recommend any dividend for the
year under review.
OPERATIONS
Your Company has achieved a turnover of Rs.9393.61 Lakhs for the
financial year as against Rs.10038.15 Lakhs last year. Whilst North
Indian Tea prices remained buoyant, there was no significant
improvement in; yarn prices. Your Company has made good progress in
creating a niche market for its tea. During the year, exports of the
Companys textile unit were adversely affected mainly due to higher
input costs, particularly raw material, power costs & interest costs
and low demand due to global recession. However, the textile division
of the Company is also showing1 signs of recovery. An increase in
demand and efforts by your management are expected to produce improved:
results in the near future.
Tea Division
Last year witnessed a strong demand for tea in the market and as such
prices were buoyant. In line with the industry, your Companys tea
division also benefited from the improved prices and better quality of
tea produced by it. Inspite of loss of crop, the division reported
better results due to improved average realization.
During the current year,the market is buoyant and tea prices have
scaled new highs. The year shows a drop in production in all tea
producing countries. North India too has experienced a drought. This
has resulted in a shortage of supply, resulting in escalation of
prices. With steps being taken to augment the availability of labour,
better field practices, a buoyant market and firm prices, the outlook
for the division looks favourable.
Textile Division
The division went through one of the worst years in recent history. The
first half of the year saw cotton prices going through the roof due to
unbridled exports of cotton in the 2007-08 season. The country reaped a
bountiful crop for the 2008-09 cotton season, for second year in
running. This generated optimism amongst spinners, however the increase
in MSP (Minimum Support Price) of cotton by the Government resulted in
domestic prices ruling higher than international prices. This adversely
affected the industrys export competitiveness.
Average sales realisation increased by,7.73 %, the improvement was more
than negated by increase in average raw- material cost by 15.52%. The
continuously rising raw-material costs forced the division to impose
voluntary production cut. About 70 days production was lost due to
voluntary production cut and power cuts.
The division & the Industry are working on negative margins. However,
in the recent past, there has been a moderate increase in demand and
your management is hopeful this trend will continue and curtail the
losses.
The focus of the management is on cost reduction and optimizing product
mix to bring the operations back on rail.
FINANCE
During the year under review, the Company repaid the installment of
Term Loans amounting to Rs.552.69 lakhs, falling due during the current
year. The Company has also made fresh borrowings of Rs. 1125.84 lakhs
for funding capital expenditure and other working capital requirements.
Long term debts of the Company stands at Rs. 3803.52 Lakhs.
DIRECTORS
Mr. P.K. Bhattacharjee and Mr. Pavan Kumar Poddar, Directors of the
Company, retire by rotation at the ensuing Annual General Meeting and
are eligible for re-election.
CORPORATE GOVERNANCE & MANAGEMENT DISCUSSION AND ANALYSIS
A separate report on Corporate Governance along with Auditors
Certificate on its compliance is enclosed and forms part of this
Report. Management Discussion and Analysis Report forms a part of the
Annexure to the Directors Report.
DIRECTORS RESPONSIBILITY STATEMENT
- The Directors state that:
- Appropriate Accounting Standards as are applicable to the Annual
Statement of Accounts for the financial year ended 31st March, 2009
have been followed in preparation of the said accounts.
- The Directors have followed the accounting policies as described in
the Schedule 19 (Notes on Accounts) and applied them consistently to
facilitate true and fair view of the state of affairs of the Company.
- Sufficient care has been taken to maintain accounting records of the
Company.
- The statement of accounts has been prepared on a going concern basis.
FIXED DEPOSITS
The amount outstanding as on 31st March, 2009 on account of Fixed
Deposits aggregating Rs. 59.35 lacs is yet to mature and all the
deposits that matured during the year were repaid with interest due
thereon and nothing remains unclaimed.
AUDITORS
Messrs Jain & Co., Chartered Accountants, Auditors of the Company has
expressed their inability to continue as the Statutory Auditors of the
Company and had since submitted their resignation. Messrs B. R. Shah &
Associates, Chartered Accountants, has expressed their willingness to
take up the assignment and have submitted the certificate pursuant to
Section 224(1 )(b) of the Companies Act, 1956 about their eligibility
for appointment. The Company proposes to appoint Messrs B. R. Shah &
Associates as the Statutory Auditors of the Company to hold office till
the conclusion of next Annual General Meeting.
COST AUDIT
As stipulated by the Central Government and pursuant to Section 233B of
the Companies Act, 1956, Cost Audit of the records relating to the
Textile Business of the Company is carried out from 1998-1999 onwards.
Messrs N.D. Birla & Co., Cost Accountants, Ahmedabad, has been
appointed as the Cost Auditor of the Company to carry out the Cost
Audit for the year 2008-09.
PROMOTER GROUP
In accordance with the SEBI (Substantial Acquisition and Takeovers)
Regulations, 1997, details of Promoter, Promoter Group and its
constituents are disclosed in a statement annexed to this Report.
EMPLOYEE PARTICULARS
The particulars of employees pursuant to Section 217 (2A) of the
Companies Act, 1956 read with the Companies (Disclosure of Particulars
in the Report of Board of Directors) Rules, 1988 are not applicable as
no employee was in receipt of remuneration to the extent laid down in
the said Rules.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
A statement pursuant to Section 217(1) (e) of the Companies Act, 1956
read with the Companies (Disclosure of Particulars in the Report of
Directors), Rules, 1988 on conservation of energy, technology
absorption, foreign exchange earnings and outgo is annexed to and forms
part of this Report.
ACKNOWLEDGEMENT
Your Directors place on record their appreciation for the cooperation
and support extended by the Employees, Banks/ Financial Institutions
and all other business partners.
For and on behalf of the Board
U. KANORIA
Kolkata, 9th May, 2009 Chairman
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