Mar 31, 2010
The Directors are pleased to present the Seventeenth Annual Report on the business and operations of the Company and the audited statement of accounts for the year ended 31 March, 2010.
Financial Results and Appropriations : (Rs. in Lacs)
Particulars 2009-10 2008-09
Operating Profit 303.58 498.10
Profit before tax (53.61) 28.83
Provision for taxation 3.36 39.04
Provision for deferred tax (7.65) 38.00
Profit after tax (49.32) (48.21)
Profit brought forward from previous year 966.02 1014.23
Profit available for appropriation 916.70 966.02
Operation and Business Performance
During the year 2009-10, the Company has faced an unprecedented situation in global market as compared to previous year and experienced drop in turnover. Due to increase in Raw Material costs, adverse effect on realization value and higher interest rates, the profit before tax as well as net profit has dropped as compared to previous year.
Overall the world economy is showing the signs of improvements this year. Your Directors hope to come out of this situation shortly. Your Company is putting all its efforts to achieve better performance.
During the year ended 31st March, 2010, the Board has not recommended any dividend for the year under review.
In terms of provisions of the Companies Act, 1956 and Articles of Association of the Company, Sri A.K. Churiwal and Sri S.K. Modi retire by rotation and being eligible, offer themselves for re-appointment.
Directors responsibility statement
Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956, the Board of Directors confirm that :
(a) In the preparation of Annual Accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures.
(b) Appropriate accounting policies have been selected and applied consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of the affairs of the Company at the end of the Financial Year and of the Profit of the Company for that period.
(c) 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.
(d) The annual accounts have been prepared on a going concern basis.
To comply with conditions of Corporate Governance, pursuant to Clause 49 of the Listing Agreement with Stock Exchange, Corporate Governance Report and Auditors Certificate are included in the Annual Report.
Conservation of energy, Technology absorption and Foreign exchange earnings and outgo
Information under Section 217(1)(e) read with Companies (Disclosure of particulars in the report of Directors) Rules, 1988 is set out in Annexure-A, forming part of this report.
Management Discussion & Analysis Report
Management Discussion & Analysis Report is enclosed at Annexure- B to this report.
Particulars of employees
There are no employees employed during the year or part of the year who were in receipt of remuneration in excess of the limits prescribed under Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975.
M/s. G. Bagrodia & Company, Chartered Accountants, Statutory Auditors of the Company retire at the conclusion of ensuing Annual General Meeting and are eligible for re-appointment. Directors recommend the appointment of the retiring Auditors.
Regarding Point No. 4 of the Audit Report, this is to state that :
The Company is taking all necessary steps to realize the money due to the Company. Management is confident to realize all the dues.
The inventories are valued as per the costing method followed by the Company as required under Costing record Rules. The old unsold traded goods do not include the complicated fashion designs, which will get outdated within short span of time. And the quality of the fabric is not deteriorated by afflux of time.
Your Directors wish to place on record their appreciation for the excellent co-operation and assistance received from Bankers, Financial Institutions, Central and State Government. We express our wholehearted thanks to the customers and suppliers for their valued patronage and the shareholders for the continued confidence reposed in the Company and its Management.
Your Directors also wish to place on record their appreciation for the total dedication and wholehearted efforts made by employees of the Company.
Propelled by its vision and powered by internal vitality, your Directors look forward to the future with confidence.
For and on behalf of the Board
Place : Bangalore Sushil Kumar Churiwala
Date : 04-08-2010 Chairman and Managing Director