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Directors Report of M K Exim (India) Ltd.

Mar 31, 2015

Dear Members,

The Directors have pleasure in presenting their 23rd Annual Report and the audited financial statements for the financial year ended 31 "March 2015

1 Financial Results

The summarized financial results for the financial year ended 31st March 2015 are presented below:

Rs. In lacs

Details Financial Financial year ended year ended 31st March 31st March 2015 2014

Income from operations 5093.03 2808.90

Profit before interest, 107.93 47.66 depreciation and taxation

Finance cost 21.60 17.63

Depreciation 17.45 15.73

Profit before tax 68.88 14.30

Taxation 18.00 3.21

Profit after tax 50.88 11.09

Balance brought forward from 933.18 922.09 previous year

Disposable surplus available 984.06 933.18 after adjustments

Appropriations:

Proposed dividend 35.90 -

Dividend distribution tax 7.35 -

Balance carried to balance 940.81 933.18 sheet

The income during the financial year ended 31st March 2015 is Rs. 5093.03 lacs compared to Rs. 2828.90 in the previous year- an increase of 81.31%. The profit after tax for the financial year ended 31st March 2015 is Rs. 50.88 lacs compared to Rs. 11.09 lacs - an increase of 359% over the previous year. The sales by way of exports is Rs. 4602.87 lacs during the year ended 31st March 2015 compared to Rs. 2477.95 lacs in the previous year. Export sales constitute about 96% of the total sales during the year.

2 Dividend and Reserves

The Board of Directors has recommended a dividend of Rs. 0.50 per share (5%) for the financial year ended 31s' March 2015 aggregating to Rs.35.90 lacs. During the year under review, no amount is transferred to general reserves and the surplus amount of Rs. 940.81 lacs is carried over to the balance sheet.

3 Share Capital

The paid up equity share capital of the Company as at 31st March 2015 stood at Rs 718.05 lacs. During the year under review, the Company has not issued shares with differential voting rights nor has it granted any stock options or sweat equity. None of the directors of the Company hold instruments convertible into equity shares during the financial year ended 31st March 2015.

4 Finances Accounts

The Company prepares its financial statements in accordance with the requirements of the Companies Act 2013 and the Generally Accepted Accounting Principles (GAPP)as applicable in India. The financial statements have been prepared on historical cost basis. The estimates and judgments relating to the financial statements are made on a prudent basis so as to reflect in a true and fair manner, the form and substance of transactions and reasonably present the Company's state of affairs, profits and cash flows for the financial year ended 31st March 2015.

5 Business Risks

Like any other company in the textiles sector, the Company is exposed to business risks which can be internal and external. Increase in oil prices, volatility in the exchange rate of rupee vis-a- vis other principal currencies, increase in inflation leading to reduced spending power, are some of the risks faced by the Company. The expected slow down in the growth in economies in Euro Zone, USA, South American countries, Russia, Middle East and other Asian countries may impact export sales of the Company.

The Board of Directors is well aware of these risks and through the operational management, continues to monitor them and guides in taking prompt action to mitigate the risks.

6 Corporate Social Responsibility

Section 135 of the Companies At 2013 and the rules made there under relating to corporate social responsibility are not applicable to the Company during the financial year ended 31 st March 2015.

7 Subsidiaries

The Company has no subsidiary company.

8 Corporate Governance

As per SEBI circular CIR/CFD/POLICY CELL/7/2014 dated 15th September 2014, clause 49 of the listing agreement relating to corporate governance is not applicable to the Company.

9 Listing of shares in BSE

During the financial year under report, the equity shares issued by the Company are listed at BSE.

10 Extract of Annual Return

The extract of annual return in form MGT 9, as required under section 92 of the Companies Act 2013, as at 31st March 2015, is annexed to this report as Annexure A which forms part of this report.

11 Key Managerial Personnel

During the year under review, the Company has appointed following persons as its Key Managerial Personnel

Sr No. Name Designation

1 Shri Dayaram Khanchandani Chairman and Whole time Director

2 Shri Manish Murli Dialani Managing Director

3 Shri Shashi Kant Vyas Chief Financial Officer

4 Ms. Prakriti Sethi Company Secretary

12 Board of Directors

Appointment

During the year, the Board had appointed, on the recommendation of the Remuneration and Nomination Committee, Shri Manish M Dialani as the additional director from 29th September 2014 and as the Managing Director from 30th October 2014 for a period of 5 years subject to approval of the members at the ensuing annual general meeting.

During the year, the Company has appointed Smt. Lajwanti Murli Dialani (DIN 05201148) as additional director with effect from 30.03.2015 . As additional director, she holds office till the ensuring annual general meeting. The Company has received notice of her appointment with requisite deposits from a member.

Resignation

Smt. Pushpa Khanchandani (DIN 00174337 ) resigned as Director from 30.10.2014. The Board places on record its appreciation of the services rendered by Smt. Pushpa Khanchandani. Independent Directors

All Independent directors have given declaration that they meet the criteria of independence as stipulated under section 149(6) of the Companies Act 2013.

As per provisions of Section 152 of the Companies Act 2013 and in accordance with the provisions of the Articles of Association of the Company, Shri Dayaram Khanchandani retires by rotation and being eligible offers himself for re appointment.

13 Number of meetings of the Board

During the year under report, the board met 12- times on 15.05.2014, 26.05.2014, 21.06.2014, 30.06.2014, 31.07.2014, 01.09.2014, 01.10.2014, 30.10.2014, 22.12.2014, 07.02.2015, 18.03.2015 & 30.03.2015

14 Board Evaluation

The performance evaluation of the independent directors was completed. The performance evaluation of the Chairman and non-independent directors was carried out by the independent directors and was accepted by the Board.

15 Particulars of loans, guarantees or investments by the Company

During the year, the Company has not given any loan or issued any guarantee in connection with the loan.

The Company has entered into an agreement with the directors and members of Kolba Farm Fab Private Limited (Kolba), a company based in Surat, Gujarat, to acquire the said company's shares subject to certain terms and conditions. Kolba's business activities are in sync with the Company's business. If the agreement materialises, Kolba would become the subsidiary of the Company during the current financial year. The acquisition would greatly supplement the ever increasing business activities of the Company.

16 Whistle Blower policy

The Company has in place a mechanism to report genuine concerns or grievances.

17 Remuneration and Nomination policy

The Board of directors has adopted a policy framework for selection, appointment and remuneration of directors, key managerial personnel and senior management of the Company.

18 Related party transactions

All transactions entered with related parties for the financial year ended 31st March 2015 were on arm's length basis and in the ordinary course of business. Hence provisions of Section 188 of the Companies Act 2013 are not attracted and disclosure in form AOC 2 is not required.

All related party transactions are placed before the Audit Committee and the Board of Directors for approval.

19 Significant and material orders passed by the regulators or courts

There are no significant and material orders passed by the regulators or courts against the Company during the year.

20 Directors responsibility statement

To the best of knowledge and belief and according to the information and explanation obtained by them, your directors make the following statement in terms of section 134(3)(c) of the Companies Act 2013:

(i) That in preparation of the annual accounts for the year ended 31st March 2015 the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;

(ii) And applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March 2015 and of the profit of the Company for the year ended on that date;

(iii) That the directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities

(iv) That the annual accounts have been prepared on a going concern basis

(v) That the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

21 Statutory auditors

M/s. Vimal Agrawal & Associates, Chartered Accountants, who are statutory auditors of the Company hold office upto the forthcoming annual general meeting. If appointed, Under section 139 of the Companies Act 2013, they shall hold office from the conclusion of the ensuing annual general meeting till the conclusion of the annual general meeting relating to the financial year ending 31st March 2018. The Company has obtained written confirmation from the auditors that their appointment, if made, would be in conformity with the limits specified in the said section.

Qualification in the auditor's report

With reference to the auditor's remarks in regard to AS 15 for Employees Benefits (Revised 2005) for provision of gratuity, the Directors clarify that the liability for gratuity payable by the Company is being worked out in consultation with LIC and appropriate policy as advised by LIC will be taken in due course, during the current financial year.

22 Cost Audit

The provisions of the Companies (Cost Records and Audit) Rules 2014 are not applicable to the Company's operations.

23 Secretarial Audit Report

As required under section 204 of the Companies Act 2013, the Secretarial Audit Report from Mr. Suresh Chandra Sharma, S. C. Sharma & Associates, Practising Company Secretary (CP No 3374) is annexed to this report as Annexure B which forms part of this report.

With reference to the observations in the secretarial audit report in the matter of appointment of independent directors, the Directors state that the Company has complied with the provisions of section 149 of the Companies Act 2013 and no action need to be taken further.

24 Internal control system and their adequacy

The Company has an effective internal control system commensurate with its size and scale of its operations. The internal audit is entrusted to M/s M/s Madhur & Associates, Chartered Accountants.

The Audit Committee reviews the adequacy and effectiveness of the internal control systems and suggests improvements, wherever required.

25 Environment and Safety

The Company's operations do not pose any environment hazards and are conducted in such a manner that safety of all concerned and compliances with environmental regulations is ensured.

26 Statutory Information

(A) Conservation of energy:

I. Power Consumption:

Year Ended Year Ended 31.03.2015 31.03.2014

1. Electricity

Purchased units 46110 15510

Total Amount (in Rs.) 334637 119033

Rate per unit (in Rs.) 7.26 7.67

2. Diesel

Purchased (in liters) NIL NIL

Total Amount(in Rs.) NIL NIL

Rate per liter (in Rs.) NIL NIL

3. Coal NIL NIL

4. Furnance Oil NIL NIL

5. Other Internal Generation NIL NIL

II. Consumption per unit of Production

Year Ended Year Ended 31.03.2015 31.03.2014

1. Electricity units NIL NIL permtr. fabrics

The Consumption of energy has increased with the increased business activities of the Company during the year. The Management is taking all possible efforts to avoid wasteful consumption of energy.

(B) Technology Absorption: The Company has no technology agreement and the issue of technology absorption does not arise.

(C) Foreign exchange out go and expenses

Foreign exchange earnings: Rs 45,91,40,093/-

Foreign Exchange outgo Rs. NIL

27 Acknowledgment

The Directors wish to place on record their appreciation of the contribution made by the employees at all levels but for whose efforts, the Company could not have achieved the remarkable financial results for the financial year ended 31st March 2015.

The Directors also to wish to thank the Company's customers and banks for their continued support and faith reposed in the Company.

By order of the board for M. K. Exim (India) Limited

Sd /- Sd/- Sd/- DayaRam Khanchandani Manish Murlidhar Dialani Prakriti Sethi Whole Time Director Managing Director Company Secretary (DIN:00161546) (DIN:05201121)

Place: Jaipur Date:30.05.2015


Mar 31, 2014

Dear Members

The Directors have great pleasure in presenting the 22nd Annual Report on the performance of your Company for the financial year ended on 31st March, 2014 along with Audited Statement of Accounts.

The highlights of the financial results of the Company for the Financial Year ended on 31st March, 2014 are as under:-

FINANCIAL HIGHLIGHTS

Rs. In Lacs

Financial Year ended on Particulars 2013-14 2012-13

Sales and other Income 2808.90 1394.45

Profit before interest & depreciation 44.80 61.43

Interest 14.76 37.23

Profit after interest 30.04 24.20 but before Depreciation

Depreciation 15.74 16.82

Profit/ (Loss) before tax 14.30 7.38

Provision for taxation 6.83 (1.59)

Deferred Tax Liability 3.62 2.10 (Created)/ Reversed

Net Profit/ (Loss) after tax 11.09 7.89

FINANCIAL PERFORMANCE

The turnover during the financial year 2013-14 was Rs. 2808.90 lacs in comparison of previous year Rs. 1394.45 lacs. The turnover has increased by approx. 101 percentage. The board is making their all possible efforts to improve the performance of the Company.

DIVIDEND

Your Board of Directors has not propose any dividend for the year.

DIRECTORS:

The company has received confirmation from Directors u/s 164 of Companies Act, 2013 in respect of director''s qualification.

The board wants to appoint a new Director Mr. MANISH MURLIDHAR DIALANI DIN NO. 05201121 as director of the company whose nomination with deposit and consent to act as director of the company has been received by the company. Shareholders are requested to approve his appointment as director of the company.

SALE OF LAND AND PLANT:

The board wants to sale a land situated at Village -Khinwal Teh Raipur Distt. Pali and Plant of the year 1998. The plant is not in a useable condition. Shareholders are requested to approve the proposal of selling these so the company can use the amount in the expansion of the existing working of the company.

FIXED DEPOSITS

The Company has not received/accepted any deposit with in the Section 58A of the Companies Act, 1956 and the rules made there under.

RESPONSIBILITY STATEMENT

The Directors confirm:

a) that in the preparation of the Annual Accounts, the applicable Accounting Standard has been followed and that no material departures have been made from the same;

b) that they have selected such Accounting Policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give true and fair view of the State of Affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period;

c) that they have taken proper and sufficient care for the maintenance of adequate records in accordance with the provisions of the Companies Act, 1 956 for safeguarding the Assets of the Company and for preventing and detecting fraud and other irregularities.

d) that they have prepared the Annual Accounts on a Going Concern Basis.

CORPORATE GOVERNANCE

The Company has implemented all the Provisions of the Corporate Governance as stipulated by Clause 49 of the Listing Agreement with all the Stock Exchanges where the Company''s securities are listed. It has always been a constant endeavour of the Company to adopt Good Corporate Governance code through independent board, transparent disclosures, and Shareholders empowerment for creating and sustaining shareholders value. A separate section on Corporate Governance along with a Certificate from the Auditors of the Company certifying compliance of stipulations of Clause 49 of Listing Agreement with the Stock Exchanges with regard to the Corporate Governance code is annexed with this report.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The report on Management Discussion and Analysis as required under the Listing Agreement with the Stock Exchanges is annexed and forms part of the Directors'' Report.

AUDITORS

M/S Vimal Agrawal & Associates, Chartered Accountants, Jaipur, the Statutory Auditors of the Company retire and are being eligible for re-appointment. The board recommends for the approval of their re-appointment.

The replies on the observation made by the auditors are as follows:-

I. AS 28 regarding ''Impairment of Assets'', in respect of impairment loss of garment Manufacturing unit, impairment loss, remains unascertained.

The board has decided to dispose of these assets relevant with garment manufacturing unit after completing the necessary compliances.

II. AS-15: ''provisions for Gratuity'', for employees

benefits (Revised 2005), in respect of provision for gratuity provided by the company is inadequate and its effect on liabilities and profit of the company is unascertainable. Further, requisite disclosures are not made in respect of retirement benefits.

The board is planning to take some policy decision regarding this to overcome this non- compliance.

PERSONNEL

There have been cordial personnel relations in the Company. There was no employee drawing salary of Rs.5,00,000/- per month or more and Rs. 60,00,000/- yearly basis or more in the year ended March, 31,2014. Therefore, the provisions of Section 217 (2A) of the Companies Act, 1956, read with the, "The Companies (Particulars of Employees) Rules, 1975" are not applicable.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

As required under Section 217 (1) (e) of the Companies Act, 1956 read with the Companies (Disclosures of Particulars in the Report of the Board of Directors) Rules, 1988, the information relating to conservation of energy, technology absorption and foreign exchange earnings and outgo is annexed.

APPRECIATION

The Directors of your Company sincerely appreciates the help and co-operation rendered by banks, Government and non-governments departments, employees and others who have contributed for the interest of the Company.

By order of the board For M.K. Exim (India) Limited

Dayaram Khanchandani Pushpa Khanchandani Whole-Time Direcot Whole-Time Direcot DIN: 00161546 DIN: 00174337

(Prakriti Sethi) Company Secretary

Place : Jaipur Date : 01.09.2014


Mar 31, 2010

The Directors have great pleasure in presenting the 18th Annual Report on the performance of your Company for the financial year ended on 31st March, 2010 along with Audited Statement of Accounts.

The highlights of the financial results of the Company for the Financial Year ended on 31st March, 2010 areas under:-

FINANCIAL HIGHLIGHTS

Rs. In Lacs Particulars Financial Year ended on 2009-10 2008-09

Sales and other Income 319.68 277.80

Profit before Interest & depreciation 28.13 (5.17)

Interest 19.02 24.20

Profit after Interact but before depreciation 7.11 29.40

Depreciation 20.92 35.55

Profit/(Loss) before tax (13.81) (64.92)

Provision for taxation 0.00 0.00

Provision for FBT 0.0 1.04

Deferred Tax Liability (Created)/Reversed (70.03) (9.23)

Net Profit/(Loss) after Tax (56.22) (56.73)

FINANCIAL PERFORMANCE

The turnover during the financial year 2010 was Rs. 3,23,07,466 in comparison of previous year Rs. 2,50,35,960. The turnover has increased by approx. 29 percentage.

During the year the board has decided to enter into new areas of jewellery and hotel business. The company has made some tie- ups for hotel business, which will be highlighted shortly.

The Company has also made a preferential allotment of 31,00,000 equity shares at a price of Rs. 27/- each after getting necessary approvals from its shareholders. Some pending approvals are in progress from the stock exchanges, where the securities of the company are listed.

FIXED DEPOSITS

The Company has not received/accepted any deposit with in the Section 58A of the Companies Act, 1956 and the rules made there under.

RESPONSIBILITY STATEMENT

The Directors confirm:

a) That in the preparation of the annual accounts, the applicable accounting standard has been followed and that no material departures have been made from the same;

b) That they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give true and fair view of the state of affairs of the company at the end of the financial year and of the profit or loss of the company for that period;

c) That they have taken proper and sufficient care for the maintenance of adequate 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.

d) that they have prepared the annual accounts on a going concern basis.

CORPORATE GOVERNANCE

The Company has implemented all the Provisions of the Corporate Governance as stipulated by Clause 49 of the Listing Agreement with all the Stock Exchanges where the Companys securities are listed. It has always been a constant endeavour of the Company to adopt Good Corporate Governance code through independent board, transparent disclosures, and Shareholders empowerment for creating and sustaining shareholders value. A separate section on Corporate Governance along with a Certificate from the Auditors of the Company certifying compliance of stipulations of Clause 49 of Listing Agreement with the Stock Exchanges with regard to the Corporate Governance code is annexed with this report.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The report on Management Discussion and Analysis as required under the Listing Agreement with the Stock Exchanges is annexed and forms part of the Directors Report.

AUDITORS

During the year the previous auditor of the company M/S P.C. MODI & Co., has given resignation and the company appointed new auditor M/S Vimal Agrawal & Associates, Chartered Accountants, Jaipur to fill up the casual vacancy caused by resignation of M/S P.C. Modi &Co.

The board places its high sense of appreciation for the services rendered by the out-going auditor.

The board request to approve the reappointment of the auditor, viz., M/S Vimal Agrawal & Associates. The auditors report is self explanatory hence does not require any explanation.

COMPLIANCE CERTIFICATE

The Compliance Certificate obtained from M/S S C Sharma & Associates, Company Secretaries, Jaipur, is attached with this report. The certificate is self explanatory, hence does not require any explanation.

PERSONNEL

There have been cordial personnel relations in the Company. There was no employee drawing salary of Rs.2,00,000 per month or more and Rs.24,00,000 or more in the year ended March, 31,2010. Therefore, the provisions of Section 217 (2A) of the Companies Act, 1956, read with the, "The Companies (Particulars of Employees) Rules, 1975" are not applicable.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

As required under Section 217 (1) (e) of the Companies Act, 1956 read with the Companies (Disclosures of Particulars in the Report of the Board of Directors) Rules, 1988, the information relating to conservation of energy, technology absorption and foreign exchange earnings and outgo is annexed.

APPRECIATION

The Directors of your Company sincerely appreciates the help and co-operation rendered by banks, Government and non- governments departments, employees and others who have contributed for the interest of the Company.

By order of the board

Sd/- (D R Khanchandani) Chairman

Sd/- (K L Khanchandani) Managing Director

Place : Jaipur

Date : 01st September, 2010


Mar 31, 2009

The Directors have great pleasure in presenting the 17" Annual Report on the performance of your Company for the financial year ended on 31" March, 2009 along with Audited Statement of Accounts.

The highlights of the financial results of the Company for the Financial Year ended on 31 "March, 2009 are as under:-

FINANCIAL HIGHLIGHTS

Rs. In Lacs

Particulars Financial Year ended on 2008-09 2007-08

Sales and other Income 277.80 147.95

Profit before interest & dep. (5.17) 27.71

Interest 24.20 71.05 Profit after interest but before depreciation 29.40 43.34

Depreciation 35.55 49.18

Profit/(Loss) before tax (64.92) (92.52)

Provision for taxation 0.00 0.00

Provision for FBT 1.04 1.35 Deferred Tax Liability

(Created)/Reversed (9.23) 23.49

Net Profit/(Loss) after Tax (56.73) (70.38)

FINANCIAL PERFORMANCE

The turnover during the financial year 2009 was Rs. 2,50,35,960 in comparison of previous year Rs. 1,77,81,450. The turnover has increased by approx. 41 percentage. During the year under review the margin has reduced due to reverse market conditions in garment industry specially relevant with exports

FIXED DEPOSITS:

The Company has not received/accepted any deposit with in the Section 58A of the Companies Act, 1956 and the rules made there under.

RESPONSIBILITY STATEMENT:

The Directors confirm:

a) that in the preparation of the annual accounts, the applicable accounting standards have been followed and that no material departures have been made from the same;

b) that they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period;

c) that they have taken proper and sufficient care for the maintenance of adequate 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;

d) that they have prepared the annual accounts on a going concern basis.

CORPORATE GOVERNANCE:

The Company has implemented all the Provisions of the Corporate Governance as stipulated by Clause 49 of the Listing Agreement with all the Stock Exchanges where the Companys securities are listed. It has always been a constant endeavor of the Company to adopt Good Corporate Governance code through independent board, transparent disclosures, and Shareholders empowerment for creating and sustaining shareholders value. A separate section on Corporate Governance along with a Certificate from the Auditors of the Company certifying compliance of stipulations of Clause 49 of Listing Agreement with the Stock Exchanges with regard to the Corporate Governance code is annexed with this report.

MANAGMENT DISCUSSION AND ANALYSIS REPORT

The report on Management Discussion and Analysis as required under the Listing Agreement with the Stock Exchanges is annexed and forms part of the Directors Report.

AUDITORS

M/S P.C. MODI & Co., Chartered Accountants, Jaipur, the Statutory Auditors of the Company retire and are being eligible for re-appointment. The Board recommends for the approval of their re-appointment.

The replies on the observation made by the auditors are as follows:-"!) regarding going concern assumption is inappropriate: During this year from the period April, 2009 to July, 2009 the turnover of the company was Rs. 157 lacs, and the expected profit on this turnover is Rs. 21 lacs. This fact shows that the company is running its business on going concern concept. 2) regarding Trade Advances and trade debtors are doubtful: according to the management of the company the trade advances are good and recoverable. 3) closing stock is obsolete and damaged: according to the management the valuation of the closing stock has been done on the price which is below the market price, hence the statement is not correct. 4) Provision for bonus: from last two years the company was incurring losses, hence the company not made any provision for this. In current year it is expected that the company wili earn profits. The management is of the view that the company will make the provisions for bonus during this year. 5) not charging any interest on trade advances given by the company: the management is making all efforts to recover complete trade advances. 6) procedure of inventory verification inadequate: according to the management of the company verification is accurate according to the size of the company and it is valued less than the market price. 7) interest free loan U/S 301: during the year no new loan has been given by the company. 8) Irregular in depositing PF dues: due to losses in previous year the company has not deposited dues under the provisions of the P F Act in prescribed time.

9) VAT dues, Income-tax demand etc.: the income-tax demand is pending because the case is pending with Commissioner of IT (Appeals), the delays in depositing in dues of Salex Tax and VAT was due to losses in the previous year. 10) defaulted in repayment in financial institutions dues: the delay was only due to losses in the previous year. Even in this situation the company has cleared loans of RIICO and limits of SBBJ for reducing the interest burden on the company.

PERSONNEL

There have been cordial personnel relations in the Company. There was no employee drawing salary of Rs. 2,00,000 per month or more and Rs. 24,00,000 or more in the year ended March, 31, 2009. Therefore, the provisions of Section 217(2A) of the Companies Act, 1956, read with the, "The Companies (Particulars of Employees) Rules, 1975" are not applicable.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

As required under Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosures of Particulars in the Report of the Board of Directors) Rules, 1988, the information relating to conservation of energy, technology absorption and foreign exchange earnings and outgo is annexed.

APPRECIATION

The Directors of your Company sincerely appreciates the help and co-operation rendered by banks, Government and non- governments departments, employees and others who have contributed for the interest of the Company.

By order of the Board

Sd/-

(D R Khanchandani)

Chairman

Sd/- (K. L. Khanchandani)

Managing Director

Place: Jaipur

Date: 1st September, 2009

 
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