Home  »  Company  »  United Leasing & Ind  »  Quotes  »  Directors Report
Enter the first few characters of Company and click 'Go'

Directors Report of United Leasing & Industries Ltd.

Mar 31, 2015

Dear Members,

Your Directors have great pleasure in presenting the 31st Annual Report together with the Audited Annual Accounts of the Company for the financial year ended on 31st March, 2015.

FINANCIAL RESULTS

The financial results of the Company for the year ended 31st March 2015 are as follows:

(Rs.in Lacs)

Particulars Year ended Year ended

31.03.2015 31.03.2014

Total Income 42.58 41.46

Operating Expenses 12.30 10.02

Profit before Finance Cost, 30.28 31.45

Depreciation & Amortisation Exp.

Depreciation & Amortization Expenses 27.61 20.54

Financial Expenses 19.58 25.74

Loss Before Tax (16.91) (14.83)

Provision for Tax 58.64 0.00

Loss after Tax (75.55) (14.83)

Less asset balances written off in accordance with Schedule-II of Companies Act,2013 (211.14) 0.00

Balance Brought Forward (106.34) (91.50)

Balance Carried forward (393.03) (106.34)

PERFORMANCE REVIEW

During the year, the turnover increased from Rs.41.46 Lacs previous year to Rs. 42.58 Lacs current year and the Profit before Finance Cost, Depreciation and Amortisation Expenses is down from Rs.31.45 Lacs to 30.28 Lacs. The Company incurred loss during the year of Rs.75.55 Lacs due to provision for tax is Rs.58.64 Lacs.

DIVIDEND

With a view to strengthen the financial position of the Company in future, yours Director's have decided not to declared any dividend for the period under review.

FIXED DEPOSITS

Total members deposits as on 31st March 2015 were Rs.60.96 Lacs. No fresh of deposits were accepted during the financial year 2014-15. There were no unclaimed deposits as at March 31,2015.

DEMATERILISATION OF SHARES

The shares in the Company are under compulsory dematerialized trading.The Company's ISIN No. is INE357P0I0I4. DIRECTORS

The Board comprises of 5 Directors, namely:-

Mr.Anil Kumar Khanna - Chairman & Managing Director

Mr.V.K.Batra - Independent Director

Mr.Vipin Bali - Independent Director

Mr. Kapil Dutta. - Independent Director

Mrs.Vimal Kumari - Independent Director (Woman Director)

In accordance with the provisions of the Companies Act, 2013 and the Articles of Association of the Company, Mr.Anil Kumar Khanna, Chairman & Managing Director (DIN: 00207839) of the Company retire by rotation and being eligible, offers himself for reappointment.

Mrs.Vimal Kumari appointed on 26.5.2015 as a Additional Director (Woman Director) of the Company. Mr. Mr.Kapil Dutta is the Chairman of the Audit Committee. The terms of reference of the Audit Committee have been laid down by the Board at its meeting constituting the committee, held on 26.05.2015.

All the Independent Directors have given Declaration that they meet criteria of Independence as laid down U/s 149(6) of the Companies Act, 2013 and Clause No.49 of the ListingAgreement.

DIRECTORS' RESPONSIBILITY STATEMENT

In pursuance of Section 134 of the Companies Act, 2013 the directors, based on the representation received from the operation management, confirm that :

(i) In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

(ii) They have selected such accounting policies 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 at the end of the financial year 2014-15 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 the company and for preventing and detecting fraud and other irregularities;

(iv) They have prepared the annual accounts on a going concern basis.

(v) They have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.

(vi) They have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

STATUTORY AUDITORS

The Statutory Auditors of the Company M/s.J.P. Chawla Chartered Accountants LLP Delhi (Firm Registration No.001875N) who were appointed as Statutory Auditors by the members for five years. Their appointment would be ratified at the ensuing Annual General Meeting.

The observations of the Auditors and the relevant notes on the accounts are self-explanatory and therefore do not call for any further comments.

INTERNAL AUDITOR

The Board of Directors of your Company has re-appointed R.R.CA & Co., Chartered Accountants as Internal Auditors pursuant to the provision of Section 138 of the Companies Act, 2013 for the financial year 2015-16.

SECRETARIAL AUDITORS

The Board had appointed M/s. Choudhary Pankaj & Associates, Company Secretaries, Delhi as Secretarial Auditor pursuant to the provisions of Section 204 of the Companies Act, 2013. The Report of the Secretarial Auditors annexed to the Report as per Annexure 'A'. There is a qualification in the Report that Company did not appoint Woman Director upto 31st March, 2015.

The Management clarified that, it was in search for appointment of a Woman Director on the Board of the Company and appointed Mrs.Vimal Kumari as Woman Director w.e.f. 26th May, 2015.

CORPORATE SOCIAL RESPONSIBILITY

With the enactment of the Companies Act, 2013 and the Companies (Corporate Social Responsibility) Rules, 2014 read with various clarifications issued by the Ministry of Corporate Affairs every Company having the netwroth of Rs.500 Crores or more turnover of Rs.1000 crores or more or net profit of Rs.5 Crore or more during any financial year have to spend at least 2% of the average net profit of the Company made during the three immediately preceding financial years.

In pursuance of the Companies Act, 2013 and the Companies (Corporate Social Responsibility) Rules, 2014, the above rules are not applicable to the company during the year as the company does not have adequate profits.

REPORT ON CORPORATE GOVERNANCE:

The Company endeavors to attain highest values of Corporate Standards.The Company has adhered to the requirements set out by the Securities and Exchange Board of India's Corporate Governance practices and has implemented all the stipulations prescribed, in the Clause 49 of the Listing Agreement with Stock Exchanges.The Report on Corporate Governance as stipulated under Clause 49 of the Listing Agreement forms part of this Annual Report.

A requisite certificate from the Statutory Auditors of the Company, M/s J.P. Chawla & Co., Chartered Accountants, confirming compliance with the conditions of Corporate Governance as stipulated under the aforesaid clause 49, is attached to the Corporate Governance Report.

PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS

Details of Loans, Guarantees and Investments covered under the Provisions of Section 186 of the Companies Act, 2013 are given in the accompanying Financial Statements.

RELATED PARTY TRANSACTIONS

None of the transactions with any of related parties were in conflict with the Company's interest. Suitable disclosure as required by the Accounting Standards (ASI8) has been made in the notes to the Financial Statements.

All related party transactions are negotiated on an arms-length basis and are in the ordinary course of business. Therefore, the Provisions of Section 188(1) of the Companies Act, 2013 has been in compliance. Further the board of the company has given its approval to transaction with the related parties.

The details of the transaction with Related Party are provided in the accompanying financial statements-notes to the accounts.

COMPLIANCE UNDER THE COMPANIES ACT, 2013 AND ADDITIONAL SEBI STIPULATIONS

The Companies Act 2013 came into force substantially from Ist April, 20I4.Also, SEBI in its master circular dated 17th April, 2014 notified additional requirements on corporate governance which will be effective from Ist October, 201. The Act and the SEBI Stipulations set the tone for a more modern legislation which enables growth, greater regulation and self governance of India's corporate sector. The Act and SEBI's requirements are expected to improve corporate governance norms, enhance the accountability and protect the interests of investors, particularly small ones.

These requirements substantially increase the compliance requirements for companies. The Company is taking all the necessary steps to be compliant with the Act within the time stipulated.

COMPANY SECRETARY

Ms.Shipra Chugh, Company Secretary and Compliance Officer has been resigned w.e.f. 24lh June, 2015. The Company is making it's efforts to appoint the new Company Secretary as early as it find the suitable candidate.

AUDIT COMMITTEE

Brief description of terms of reference

The role and the powers of the Audit Committee are as per the guidelines set out in the Listing Agreement with the Stock Exchanges. The Committee also acts as a link between the auditor and the Board of Directors. The Committee meets the auditors periodically and reviews the quarterly/ half yearly and annual financial statements and discusses their findings and suggestions and seeks clarifications thereon.

Composition of the Committee and category of Directors

Mr. Kapil Dutta Independent Director

Mr.Anil Kumar Khanna Non Independent Director

MrVipin Bali Independent Director

Mrs.Vimal Kumari Independent Director (Woman Director)

Mrs. Vimal Kumari appointed on 26.5.2015 as a Additional Director (Woman Director) of the Company. Mr. Kapil Dutta is the Chairman of the Committee. The terms of reference of the Audit Committee have been laid down by the Board at its meeting constituting the committee, held on 26.05.2015.

NOMINATION AND REMUNERATION COMMITTEE

Composition of the Committee and category of Directors as decided by the Board of Directors.

MrVipin Bali - Chaiman - Independent Director

Mr. Kapil Dutta - Member - Independent Director

Mr.V.K.Batra - Member - Independent Director

STAKEHOLDERS RELATIONSHIP COMMITTEE

Composition of the Committee and category of Directors as decided by the Board of Directors.

Mr.V.K.Batra - Chairman - Independent Director

MrVipin Bali - Member - Independent Director

Mr. Kapil Dutta - Member - Independent Director

VIGIL MECHANISM AND WHISTLE BLOWER POLICY

Fraud-free and corruption-free work culture has been the core of the Company' functioning. In view of the potential risk of fraud and corruption due to rapid growth and geographical spread of operations, the company has put even greater emphasis to address this risk.

To meet this objective a Whistle Blower Policy has been laid down. The same policy as approved by the Board was uploaded on the Company's website www.uliMtd.com.

DISCLOSURE UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013

Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment. There were no complaint received from any employee during the financial year 2014-15 and hence no complaint is outstanding as an 31.3.2015 for compliance.

CONSERVATION OF ENERGY

The Company does not belong to the category of power intensive industries and hence consumption of power is not significant. However, the management is aware of the importance of conservation of energy and also reviews from time to time the measures taken/ to be taken for reduction of consumption of energy.

FOREIGN EXCHANGE EARNINGS AND OUTGO

Total foreign exchange earned : Rs. Nil

Total Foreign exchange used : Rs. Nil

PARTICULARS OF EMPLOYEES

None of the Employees of the Company was in receipt of remuneration, which was more than the limits as prescribed under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 and hence no particulars are required to be disclosed in this Report.

Threats, Risk & Concerns

On exports front, there are both positive and negative factors. Positive factors include the weak currency and decreasing cost competitiveness of China that are likely to give positive impetus to the Indian exports.At the same time, factors like slowdown and uncertainty in the global markets, volatile foreign exchange rates and increase in cotton and yarn prices are likely to negatively affect growth and profitability for the textile exports. Interest expenses are part of the finance costs, therefore any major upward fluctuations in the Interest rates leads to increase in the cost of debt of the Company. The interest rate risks are mitigated to an extent through fixed interest rates on the non convertible debentures.

The biggest challenge facing the Indian textile industry is competition from the other low cost neighbouring countries which attract more business from the international market because of lower production costs, ease in doing business and easier trade routes, according to an industry expert.

Research & Development (R&D)

Your Company continues to derive sustainable benefit from the strong foundation and long tradition of Research & Development (R&D), which differentiates it from many others. New products, processes and benefits flow from work done by he team of in house designers . This allows us to enhance quality, productivity and customer satisfaction through continuous innovation. In order to successfully carve a niche of our own we need to develop a vital competitive edge in the design development to stay ahead of the competition.

Human Resource Development /Industrial Relation

Human resource is the biggest asset of the Company and it remains one of the core focus areas of the Company.The Management of the Company lays special emphasis on the welfare of its employees and training, welfare and safety measures are undertaken on a regular basis. The Company has a well qualified and experienced team of professionals with a dedicated human resource department, which is competent to deliver when needed. The Company aims to provide a congenial work environment that respects individuals and encourages professional growth, innovation and superior performance. In the years, we have transformed our structure to enable us to move faster, innovate better . This initiative has assisted in achieving operating efficiencies and resulted in enhancing overall productivity levels within the company.

Environment .Occupational Health & Safety

Company's Environment, Health & Safety (EHS) strategies are directed towards achieving the greenest and safest operations by optimising natural resource usage and providing a safe and healthy workplace. Systemic and structured efforts continue to be made towards natural resource conservation by continuously improving resource-use efficiencies.

As we continue to bring about energy efficiencies in our operations, we also strive to substitute our energy consumptions with increased component of renewable energy. The Plant of the Company is eco-friendly and do not generate any harmful effluents. Safety devices have been installed wherever necessary.

Risk Management System

Management of the Company maintains adequate internal control system which is designed to provide reasonable assurance that assets are safeguarded and transactions are rightly executed and recorded in accordance with management authorization and accounting policies. All the records are adequately maintained for preparation of financial statements and other financial information. Apart from internal controls, the Company also audits the efficiency and security of its operations, its information technologies and data, in accordance with the global standards.

Major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis

Acknowledgement:

Your Directors are pleased to place on record their sincere gratitude to the Government, Financial Institutions, Bankers and Business Constituents for their continued and valuable co-operation and support to the Company. They also take this opportunity to express their deep appreciation for the devoted and sincere services rendered by the employees at all levels of the operations of the Company during the year.

For and on Behalf of Board

Sd/- Date: 13 August, 2015 (Anil Kumar Khanna) Place: New Delhi (Anil Kumar Khanna) Chairman DIN: 00207839


Mar 31, 2014

Dear Members,

The Directors are pleased to present their Annual Report on the working of the Company for the period from 1st April, 2013 to 31st March, 2014 with audited statements of accounts :-

FINANCIAL RESULTS

Financial results of the Company for the year ended 31st March 2014 are as follows:

(Rs.in Lacs)

Particulars Year ended Year ended 31.03.2014 31.03.2013

Total Income 41.46 17.18

Operating Expenses 10.02 7.45

Profit before Finance Cost, Depreciation & Amortisation Exp. 31.45 9.73

Depreciation & Amortization Expenses 20.54 20.54

Financial Expenses 25.74 27.38

Loss BeforeTax (14.83) (38.19)

Provision forTax 0.00 0.00

Loss afterTax (14.83) (38.19)

Balance Brought Forward (91.50) (53.31)

Balance Carried forward (106.34) (91.50)

PERFORMANCE REVIEW

During the year, the turnover increased from Rs.17.18 Lacs to Rs. 41.46 Lacs and the profit before Finance Cost, Depreciation and Amortisation Expenses also increased from Rs. 9.73 lacs to Rs.31.45 Lacs. The Company incurred loss during the year of Rs.(14.83) Lacs.

DIVIDEND

With a view to strengthen the financial position of the Company in future, yours Director''s have decided not to declared any dividend for the period under review.

DEPOSITS

Total public deposits received by the Company as per the section 58A & 58 AA of the Companies Act, 1956 read with the Companies (Acceptance of Deposits) Rules, 1975 as on 31st March 2014 were Rs.11,125,000.

DEMATERILISATION OF SHARES

The shares in the Company are under compulsory dematerialized trading.The Company''s ISIN No. is INE357P0I0I4. COMPLIANCE UNDER THE COMPANIES ACT, 2013 AND ADDITIONAL SEBI STIPULATIONS

The Companies Act 2013 came into force substantially from I April 2014. Also, SEBI in its master circular dated 17 April 2014 notified additional requirements on corporate governance which will be effective from 1 October 2014. The Act and the SEBI Stipulations set the tone for a more modern legislation which enables growth, greater regulation and self governance of India''s corporate sector. The Act and SEBI''s requirements are expected to improve corporate governance norms, enhance the accountability and protect the interests of investors, particularly small ones.

These requirements substantially increase the compliance requirements for companies. The Company is taking all the necessary steps to be compliant with the Act within the time stipulated.

REPORT ON CORPORATE GOVERNANCE

The Company endeavors to attain highest values of Corporate Standards.The Company has adhered to the requirements set out by the Securities and Exchange Board of India''s Corporate Governance practices and has implemented all the stipulations prescribed, in the Clause 49 of the Listing Agreement with Stock Exchanges. The Report on Corporate Governance as stipulated under Clause 49 of the Listing Agreement forms part of this Annual Report.

A requisite certificate from the Statutory Auditors of the Company, M/s J.P. Chawla & Co., Chartered Accountants, confirming compliance with the conditions of Corporate Governance as stipulated under the aforesaid clause 49, is attached to the Corporate Governance Report.

DIRECTORS

The Board comprises of 4 Directors, namely:-

Mr. Anil Kumar Khanna who is the Managing Director and Chairman, Mr.V.K.Batra, Mr.Vipin Bali and Mr. Kapil Dutta who are the Independent Directors.

DIRECTORS'' RESPONSIBILITY STATEMENT

In pursuance of Sec. 134 of the Companies Act, 2013 with respect to Directors'' Responsibility Statement, it is hereby confirmed:

(i) That in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

(ii) That the directors had selected such accounting policies 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 at the end of the financial year and of the profit or 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 this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

(iv) That the directors had prepared the annual accounts on a going concern basis.

(v) They have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.

(vi) They have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

INTERNAL AUDITORS

At the last meeting of Board of Directors held on 13th August, 2014, R R CA & Co, Chartered Accountants were appointed as the Internal Auditor to conduct Internal Audit as per section 138 of Companies Act, 2013.The terms of reference were decided by the Board.

COMPANY SECRETARY:

Ms. Shipra Chugh, Company Secretary and Compliance Officer has been appointed w.ef 18th June, 2014 by the Board of Directors as Company Secretary and Compliance Officer of the Company.

AUDIT COMMITTEE

Brief description of terms of reference

The role and the powers of the audit Committee are as per the guidelines set out in the Listing Agreement with the Stock Exchanges.The committee also acts as a link between the auditors and the Board of Directors.The Committee meets the auditors periodically and reviews the quarterly/ half-yearly and annual financial statements and discusses their findings and suggestions and seeks clarifications thereon.

Composition of the Committee and category of Directors

Mr. Kapil Dutta - Chairman - Independent Director

MrVipin Bali - Member - Independent Director

Mr.Anil Kumar Khanna - Member

NOMINATION AND REMUNERATION COMMITTEE

Composition of the Committee and category of Directors as decided by the Board of Directors.

MrVipin Bali - Chaiman - Independent Director

Mr. Kapil Dutta - Member - Independent Director

Mr.V.K. Batra - Member - Independent Director

STAKEHOLDERS RELATIONSHIP COMMITTEE

Composition of the Committee and category of Directors as decided by the Board of Directors.

Mr.V.K. Batra - Chairman

MrVipin Bali - Member- Independent Director

Mr. Kapil Dutta - Member- Independent Director

Ms. Shipra Chugh - Convenor

CONSERVATION OF ENERGY

The Company does not belong to the category of power intensive industries and hence consumption of power is not significant. However, the management is aware of the importance of conservation of energy and also reviews from time to time the measures taken/ to be taken for reduction of consumption of energy.

FOREIGN EXCHANGE EARNINGS AND OUTGO

Total foreign exchange earned : Rs. Nil

Total Foreign exchange used : Rs. Nil

PARTICULARS OF EMPLOYEES

None of the Employees of the Company was in receipt of remuneration, which was more than the limits as prescribed under Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 and hence no particulars are required to be disclosed in this Report.

STATUTORY AUDITORS

M/s. J.P Chawla & Company, Chartered Accountants, Statutory Auditors of the Company, holds office until the conclusion of the forthcomingAnnual General Meeting and being eligible offer themselves for re-appointment.

As required under Section 139 of the Companies Act, 2013, the Company has obtained a written consent from M/s J.P. Chawla & Co, for their re-appointment , to hold office from the conclusion of this Annual General Meeting till the conclusion of the Annual General Meeting of the Company to be held for the financial year 2016-17 (subject to the ratification by shareholders at every Annual General Meeting held hereafter), at such remuneration as may be mutually agreed between Board of the Directors of the Company and Auditors.

The Observations of the Statutory Auditors in their report read together with the Notes on Accounts are self explanatory and therefore, do not call for any further explanation.

ACKNOWLEDGEMENTS

Yours Directors take the opportunity to express their gratitude for the assistance and continued cooperation extended by Banks, Depositors and Customers.Your Directors also wish to thank the shareholders for their confidence in the Company and express their deep appreciation for the devoted and sincere services rendered by all the employees of the Company at all levels.

For & on the Behalf of Board Director

Sd/- Date: 13th August, 2014 (Anil Kumar Khanna) Place: New Delhi Chairman


Mar 31, 2013

The Board of Directors present the 29th Annual Report together with the audited accounts of the Company for the year ended on 31st March 2013.

FINANCIAL RESULTS

Financial results of the Company for the year ended 31st March 2013 are as follows:

(Rs.in Lacs) Particulars Year ended Year ended 31.03.2013 31.03.2012

Total Income 17.18 31.11

Operating Expenses 7.45 8.05

Profit before Finance Cost, Depreciation & Amortisation Exp. 9.73 23.06

Depreciation & Amortisation Expenses 20.54 21.40

Financial Expenses 27.38 27.31

Loss Before Tax (38.19) (25.65)

Provision for Tax 0.00 0.00

Loss after Tax (38.19) (25.65)

Balance Brought Forward (53.31) (27.66)

Balance Carried forward (91.50) (53.31)

OPERATIONS

During the year, the turnover decreased from Rs.31.11 Lac to Rs.17.18 Lac and the profit before Finance Cost, Depreciation and Amortisation Expenses also decreased from Rs.23.06 lac to Rs.9.73 Lac. The Company incurred cash loss during the year Rs.38.19 Lac.

DIVIDEND

The company has not declared any dividend this year.

DEPOSITS

Total public deposits as on 31st March 2013 were Rs.117.68.

DEPOSITORY SYSTEM

This is to inform all the Customers that very soon the shares of your company will be traded in de-mat form . Our Company has received the Number ISIN No.INE357P01014 from Central Depository Services (India) Ltd. We request all the Shareholders to start availing the service .

We assure you of the best service and cooperation ..

MANAGEMENT DISCUSSION & ANALYSIS INDUSTRY SCENARIO

Currently, the company is only undertaking the activity of leasing of its movable / immovable assets.

OPERATIONS

The Company continues to put its assets to suitable alternate use so that these dot not lie idle.

THREATS, RISK AND CONCERNS

The Indian Industrial scenario continues to put pressure on the operational efficiency of the company. The Company continues to put efforts towards cost reduction and operational efficiency.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Company has implemented proper and adequate internal Control systems based on the clearly defined roles and responsibilities across all Levels. The Company regularly monitors the compliance of laid down standards at all levels.

DIRECTORS

Mr.Kapil Dutta, Director of the Company, retires at the ensuing Annual General Meeting, pursuant to clause 108 of the Articles of the Association of the Company and being eligible offers himself for re-appointment.

DIRECTORS'' RESPONSIBILITY STATEMENT

In pursuance of Sec. 217 (2AA) of the Companies Act, 1956, with respect to Directors'' Responsibility Statement, it is hereby confirmed:

(i) That in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

(ii) That the directors had selected such accounting policies 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 at the end of the financial year and of the profit or 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 this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

(iv) That the directors had prepared the annual accounts on a going concern basis.

CONSERVATION OF ENERGY

The Company does not belong to the category of power intensive industries and hence consumption of power is not significant. However, the management is aware of the importance of conservation of energy and also reviews from time to time the measures taken/ to be taken for reduction of consumption of energy.

FOREIGN EXCHANGE EARNINGS AND OUTGO

Total foreign exchange earned : Rs. Nil

Total Foreign exchange used : Rs. Nil

PARTICULARS OF EMPLOYEES

The Company had no employee during the financial year under review whose particulars are required to be given under section 217(2A) of the Companies Act, 1956.

AUDITORS

M/s. J.P. Chawla & Company, Chartered Accountants, Statutory Auditors of the Company, hold office until the conclusion of the forthcoming Annual General Meeting and being eligible offer themselves for re-appointment.

ACKNOWLEDGEMENTS

Yours Directors take the opportunity to express their gratitude for the assistance and continued cooperation extended by Banks, Depositors and Customers. Your Directors also wish to thank the shareholders for their confidence in the Company and express their deep appreciation for the devoted and sincere services rendered by all the employees of the Company at all levels.

For and Behalf of Board

Sd/-

Date : 13th August, 2013 (Anil Kumar Khanna)

Place: New Delhi Chairman


Mar 31, 2011

Dear Members,

The Board of Directors present the 27th Annual Report together with the Audited accounts of the Company for the year ended on 3lst March,2011.

FINANCIAL RESULTS

Financial results of the Company for the year ended 31st March2011 are as follows:

(Rs.in Lacs)

Particulars Current Year Current Year ended ended 31.03.2011 31.03.2010

Total Income 36.11 41.77

Operating Expenses 5.67 3.34

Profit before Interest, Depreciation & Tax 30.44 38.42

Financial Expenses 26.81 28.39

Profit before Depreciation & Tax 3.63 10.03

Depreciation & Other Non cash charges 20.90 20.41

Profit Before Tax (17.28) (10.38)

Provision for Tax 0.00 0.00

Profit after Tax (17.28) (10.38)

Balance Brought Forward (10.38) (7.54)

Balance Carried forward (27.66) (17.92)

OPERATIONS

During the year, the turnover decreased from Rs.41.77 lac to Rs.36.11 Lac and the profit before interest, depreciation and tax also decreased from Rs.38.42 lac to Rs.30.44 Lac.The company earned cash profit this year of Rs.3.63 Lac against a profit of Rs. 10.03 Lac previous year.

DIVIDEND

Company has not declared any dividend this year.

DEPOSITS

Total public deposits as on 31st March, 2011 were Rs.128.78 lacs.

MANAGEMENT DISCUSSION & ANALYSIS

INDUSTRY SCENARIO

Currently, the company is only undertaking the activity of leasing of its movable/ immovable assets.

OPERATIONS

The company continues to put its assets to suitable alternate use so that these do not lie idle.

THREATS, RISK AND CONCERNS

The Indian industrial scenario continues to put pressure on the operational efficiency' of the company.The company continues to put efforts towards cost reduction and operational efficiency.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Company has implemented proper and adequate internal Control systems based on the clearly defined roles and responsibilities across all Levels.The company regularly monitors the compliance of laid down standards both at the divisional and corporate level that form the foundation of Internal control process.

DIRECTORS

Mr. Virendra Kumar Batra and Mr.Vipin Bali .Director of the Company, retires at the ensuing Annual General Meeting, pursuant to clause 108 of the Articles of the Association of the Company and being eligible offers himself for re-appointment.

DIRECTORS' RESPONSIBILITY STATEMENT

In pursuance of Sec. 217 (2AA) of the Companies Act, 1956, with respect to Directors' Responsibility Statement, it is hereby confirmed:

(i) That in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

(ii) That the directors had selected such accounting policies 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 at the end of the financial year and of the profit or 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 this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

(iv) That the directors had prepared the annual accounts on a going concern basis.

CONSERVATION OF ENERGY

The Company does not belong to the category of power intensive industries and hence consumption of power is not significant However, the management is aware of the importance of conservation of energy and also reviews from time to time the measures taken/to be taken for reduction of consumption of energy.

FOREIGN EXCHANGE EARNINGS AND OUTGO

Total foreign exchange earned Rs. Nil

Total Foreign exchange used Rs. Nil

PARTICULARS OF EMPLOYEES

The company had no employee during the financial year under review whose particulars are required to be given under section 217(2A) of the Companies Act, 1956.

AUDITORS

Varad Khanna, Chartered Accountants, Auditors.of the company, retire at the conclusion of the forthcoming Annual General Meeting and being eligible offer themselves for re-appointment.

ACKNOWLEDGEMENTS

Yours Directors take the opportunity to express their gratitude for the assistance and continued cooperation extended by Banks, Depositors and Customers.Your Directors also wish to thank the shareholders for their confidence in the Company and express their deep appreciation for the devoted and sincere services rendered by all the employees of the Company at all levels.

For and on Behalf of Board

Sd/- (Anil Kumar Khanna) Chairman

Date : 27/05/2011 Place : New Delhi




Mar 31, 2010

The Board of Directors present the 26th Annual Report together with the Audited Accounts of the Company for the year ended on 31st March 2010.

FINANCIAL RESULTS

Financial results of the Company for the year ended 31st March 2010 are as follows:

(Rs. Lacs)

Particulars Year ended Year ended

31.03.2010 31.03.2009

Total Income 41.77 38.49

Operating Expenses 3.34 5.87

Profit before Interest, Depreciation & Tax 38.42 32.62

Financial Expenses 28.39 25.71

Profit before Depreciation & Tax 10.03 6.91

Depreciation & Other Non cash charges 20.41 21.03

Profit Before Tax (10.38) (14.13)

Provision for Tax 0.00 0.25

Profit after Tax (10.38) (14.38)

Balance Brought Forward , (7-54) 6.83

Balance Carried forward (17.92) (7.54)



OPERATIONS

During the year, the turnover increased from Rs.38.49 lac to Rs.41.77 Lac and the profit before interest, depreciation and tax also increased from Rs.32.62 lac to Rs.38.42 Lac.The company earned cash profit this year of Rs. 10.03 Lac against a profit of Rs.6.91 Lac last year.The company still suffered a lower loss after tax of Rs. 10.38 lac against a loss of Rs. 14.38 Lac last year.

DIVIDEND

Company has not declared any dividend this year.

DEPOSITS

Total public deposits as on 31st March 2010 were Rs. 131.28 lacs.

MANAGEMENT DISCUSSION & ANALYSIS

INDUSTRY SCENARIO

Currently, the company is only undertaking the activity of leasing of its movable/ immovable assets.

OPERATIONS

The company continues to put its assets to suitable alternate use so that these do not lie idle.

THREATS, RISK AND CONCERNS

The Indian industrial scenario continues to put pressure on the operational efficiency of the company.The company continues to put efforts towards cost reduction and operational efficiency.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Company has implemented proper and adequate internal Control systems based on the clearly defined roles and responsibilities across all Levels.The company regularly monitors the compliance of laid down standards both at the divisional and corporate level that form the foundation of Internal control process.

DIRECTORS

Mr. Kapil Dutta, Director of the Company, retires at the ensuingAnnual General Meeting, pursuant to clause 108 of the Articles of the Association of the Company and being eligible offers himself for re-appointment.

DIRECTORS RESPONSIBILITY STATEMENT

In pursuance of Sec. 217 (2AA) of the Companies Act, 1956, with respect to Directors Responsibility Statement, it is hereby confirmed:

(i) That in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

(ii) That the directors had selected such accounting policies 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 at the end of the financial year and of the profit or 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 this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

(iv) That the directors had prepared the annual accounts on a going concern basis.

CONSERVATION OF ENERGY

The Company does not belong to the category of power intensive industries and hence consumption of power is not significant. However, the management is aware of the importance of conservation of energy and also reviews from time to time the measures taken/ to b.e taken for reduction of consumption of energy.

FOREIGN EXCHANGE EARNINGS AND OUTGO

Total Foreign exchange earned : Rs.Nil

Total Foreign exchange used : Rs. Nil

PARTICULARS OF EMPLOYEES

The company had no employee during the financial year under review whose particulars are required to be given under section 217(2A) of the CompaniesAct, 1956.

AUDITORS

To appointAuditors to hold office from the conclusion of thisAnnual General Meeting until the conclusion of nextAnnual Meeting and to fix their remuneration. M/sVarad Khanna, Chartered Accountants, E-170,2nd Floor, Greater Kailash, Part-ll, New Delhi 110 048 offer themselves for appointment, in place of retiring Auditors M/s R.S.Ahuja & Co., Chartered Accountants, C-353, Defense Colony, New Delhi-110024 who have submitted their resignation.

ACKNOWLEDGEMENTS

Yours Directors take the opportunity to express their gratitude for the assistance and continued cooperation extended by Banks, Depositors and Customers.Your Directors also wish to thank the shareholders for their confidence in the Company and express their deep appreciation for the devoted and sincere services rendered by all the employees of the Company at all levels.



For and Behalf of Board

Sd/- Date : 27/05/2010 (Anil Kumar Khanna)

Place: New Delhi Chairman




Mar 31, 2005

The Board of directors present the 21 st Annual Report together with the Audited accounts of the Company for the year ended on 31 st March, 2005.

FINANCIAL RESULTS

The financial results of the Company for the year ended 31 st March, 2005 are as follows:

Particulars Current Year ended Previous Year ended 31.03.05 (Rs. in lacs) 31.03.04 (Rs. In lacs)

Total Income 172.72 135.08

Operating Expenses 105.43 69.93

Profit before Interest Depreciation & Tax 67.29 65.15

Financial Expenses 41.20 41.82

Profit before Depreciation & Tax 26.09 23.33

Depreciation 21.74 21.74

Provision for Taxation 0.34 0.12

Profit after Tax 4.01 1.47

Balance Brought Forward 44.38 92.91

Prior Period Adjustment Nil 50.00

Balance Carried forward 48.39 44.38

OPERATIONS

During the year the company made a Cash Profit of Rs. 26.09 lacs and Net Profit after depreciation of Rs. 4.01 lacs. After setdement of liabilities of all Bankers and Financial Institutions, the company is now going through a process of consolidation and will take up further expansion ofbusiness after due consideration.

DIVIDEND

Company has not declared any dividend this year.

DEPOSITS

Total public deposits as on 31 st March 2005 were Rs. 168.13 lacs.

DIRECTORS

Col. D. P.Khanna (Retd.), Director of the company, retires at the ensuing Annual general Meeting, pursuant to clause 108 of the Articles of association of the Company and being eligible offers himself for re-appointment

Col. R.M. Sharma (Retd) and Mr. Kapil Dutta, who were appointed by the Board of Directors as Additional Directors of the Company with effect from 25th May 200S,retires at the ensuingAnnual general Meetingof the Company under Section 260 of the CompaniesAct 1956, but is eligible for re-appointment

DIRECTORS RESPONSIBILITY STATEMENT

In pursuance of Sec. 217 (2AA) of the Companies Act 1956, with respect to Directors Responsibility Statement, it is hereby confirmed:

(i) that in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

(ii) that the directors had selected such accounting policies 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 at the end of the financial year and of the profit or loss of the company for that period;

(iii)that the directors tad 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 the company and for preventing and detecting fraud and other irregularities;

(iv) that the directors had prepared the annual accounts on a going concern basi s.

CONSERVATION OF ENERGY

The Company does not belong to the category of power intensive industries and hence consumption of power is not significant. However, the management is aware of the importance of conservation of energy and also reviews from time to time the measures taken /to be taken for reduction of consumption of energy.

TECHNOLOGY ABSORPTION

The company is running successfully its embroidery unit in Gurgaon comprising 2 computerised, high quality embroidery machines purchased from Saurer, Switzerland.

FOREIGN EXCHANGE EARNINGS AND OUTGO

Total foreign exchange earned Rs. 29,57,436/-

Total Foreign exchange used Rs. Nil

PARTICULARS OF EMPLOYEES

The company had no employee during the financial year under review whose particulars are required to be given under section 2l7(2A)ofthe CompaniesAct, 1956.

AUDITORS

M/s R.SAhuja & Co. CharteredAccountants,Auditors of the company, retire at the conclusion of the forthcoming Annual General Meeting and being eligible offer themselves for re-appointment

ACKNOWLEDGEMENTS

Yours Directors take the opportunity to express their gratitude for the assistance and continued cooperation extended by Banks, Depositors and Customers. Your Directors also wish to thank the shareholders for their confidence in the Company and express their deep appreciation for the devoted and sincere services rendered by all the employees of the Company at all levels.

Place: New Delhi ON BEHALF OF THE BOARD

Date : 25/05/2005 (Anoop K. Khanna) Managing Director

(Anil K. Khanna) Director

(Col. D. P. Khanna) Director




Mar 31, 2004

The Board of directors present the 20th Annual Report together with the Audited accounts of the Company for the year ended on 31st March, 2004.

FINANCIAL RESULTS

The financial results of the Company for the year ended 31st March, 2004 are as follows:

Particulars Current Year ended Previous Year ended 31.03.04 (Rs. in lacs) 31.03.03 (Rs. in lacs)

Total Income 135.08 266.68

Operating Expenses 69.93 151.60

Profit before Interest, Depreciation & Tax 65.15 115.08

Financial Expenses 41.82 41.35

Profit before Depreciation & Tax 23.33 73.73

Depreciation 21.74 69.09

Provision for Taxation 0.12 0.35

Profit after Tax 1.47 4.29

Balance Brought Forward 92.91 88.62

Prior Period Adjustment 50.00 Nil

Balance Carried forward 44.38 92.91

OPERATIONS

After the budget 2003 when small weavers were also included in the Cenvat chain of production, the textile activity in respect of production of grey fabric was disturbed for the first 4 months of the year. The impact of the changes continued during the entire financial year. As a result, the company made a Cash Profit of Rs.23.33 lacs and Net Profit after depreciation of Rs.1.59 lacs. After settlement of liabilities of all Bankers and Financial Institutions, the company is now going through a process of consolidation and will take up further expansion of business after due consideration.

DIVIDEND

Company has not declared any dividend this year.

DEPOSITS

Total public deposits as on 31st March 2004 were Rs. 167.74 lacs.

MANAGEMENT DISCUSSION & ANALYSIS

INDUSTRY SCENARIO

The embroidery industry is dependent on the growth of exports of garments and made ups etc. The embroidery serves as the major value addition factor for manufacturing garments and made ups. The management continued to concentrate more on exporters embroidery orders.

OPPORTUNITIES

Since, from the current budget, the textile industry has been exempted from the excise duty, there is tremendous potential for the growth of textile industry and for textile embroidery industry also. The textile industry provides huge employment to the Indian populace and it also contributes substantial foreign exchange through exports of textile goods.

Due to Indias extremely rich cultural heritage, it is very convenient for the designers to select innovative designs from beautiful and colourful designs used in every day life in India. Oh fabrics front also India is very strong. Various types of fabrics like georgettes, Moss crepe, cottons, cotton lycra, jersey etc. are available at good prices. Further, there is no dearth of requisite talent in India.

There is complete value chain available in India. There is no dearth of excellent quality of raw materials-fabrics, yarns and other inputs. Further there are complete processing facilities available right from fabric processing to making/ finishing the ready made garments and made ups.

THREATS, RISKS AND CONCERNS

Like other industries, the textile embroidery business is also exposed to global competition to deliver excellent quality goods at competitive prices.

OUTLOOK

Our company is gradually strengthening its position in the market and shall attain better financial results in the years to come. Further, the management is exercising tight control on costs, to improve upon bottomlines.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Company has adequate internal control systems commensurate with its size and nature of business.

DIRECTORS

Mr. R. K. Khanna, Director of the company, retires at the ensuing Annual general Meeting, pursuant to clause 108 of the Articles of association of the Company and being eligible offers himself for re-appointment.

Col. D. P. Khanna, who was appointed by the Board of Directors as Additional Director of the Company with effect from 18th December 2003 retires at the ensuing Annual general Meeting of the Company under Section 260 of the Companies Act 1956, but is eligible for re-appointment.

DIRECTORS RESPONSIBILITY STATEMENT

In pursuance of Sec. 217 (2AA) of the Companies Act, 1956, with respect to Directors Responsibility Statement, it is hereby confirmed:

(i) that in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

(ii) that the directors bad selected such accounting policies 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 at the end of the financial year and of the profit or 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 this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

(iv) that the directors had prepared the annual accounts on a going concern basis.

AUDIT COMMITTEE

The Audit Committee constituted by the Board of directors consists of Mr. R. K. Khanna, Mr. Anoop Kumar Khanna & Mr. Anil Kumar Khanna. Mr. Ft. K. Khanna is the chairman of the committee. The terms of reference of the Audit Committee have been laid down by the Board at its meeting constituting the committee, held on 31.01.2003

CONSERVATION OF ENERGY

The Company does not belong to the category of power intensive industries and hence consumption of power is not significant. However, the management is aware of the importance of conservation of energy and also reviews from time to time the measures taken / to be taken for reduction of consumption of energy.

TECHNOLOGY ABSORPTION

The company is running successfully its embroidery unit in Gurgaon comprising 2 computerised, high quality embroidery machines purchased from Saurer, Switzerland.

FOREIGN EXCHANGE EARNINGS AND OUTGO

Total foreign exchange earned : Rs. 14,12,185/-

Total Foreign exchange used : Rs. Nil

PARTICULARS OF EMPLOYEES

The company had no employee during the financial year under review whose particulars are required to be given under section 217(2A) of the Companies Act, 1956.

AUDITORS

M/s R. S. Ahuja & Co. Chartered Accountants, Auditors of the company, retire at the conclusion of the forthcoming Annual General Meeting and being eligible offer themselves for re-appointment.

ACKNOWLEDGEMENTS

Yours Directors take the opportunity to express their gratitude for the assistance and continued cooperation extended by Banks, Depositors and Customers. Your Directors also wish to thank the shareholders for their confidence in the Company and express their deep appreciation for the devoted and sincere services rendered by all the employees of the Company at all levels.

ON BEHALF OF THE BOARD

Sd/- (R. K. Khanna) CHAIRMAN

Place : New Delhi Date : 28/07/2004


Mar 31, 2003

We present the 19th Annual report together with the Audited Accounts of the Company for the year ended 31st March 2003.

FINANCIAL RESULTS

The financial results of the Company for the year ended 31st March, 2003 are as follows:-

Current Year Previous Year Ended 31.3.03 ended 31.3.02 Rs. in lacs Rs. in lacs

Total Income 266.68 327.66

Operating Expenses 151.60 116.24

Profit before Interest 115.08 211.42

Depreciation & Tax

Financial Expenses 41.35 64.23

Profit before depreciation & Taxation 73.73 147.19

Less:

Depreciation 69.09 162.48

Preliminary and Capital issue/ Misc. Expenditure written off Nil 0.89

Provision for taxation 0.35 Nil

Profit after tax 4.29 (16.18)

Balance Brought Forward 88.62 104.80

Proposed Dividend Nil Nil

Balance Carried Forward 92.91 88.62

OPERATIONS

The turnover for the current financial year is Rs. 266.68 lacs as compared to Rs. 327.66 lacs in the previous year. In fact, the embroidery turnover has increased from Rs. 96.86 lacs to Rs. 207.83 lacs in the current financial year.

Further, the company earned modest cash profits of Rs. 73.73 lacs , and net profit of Rs. 4.64 lacs.

We could curtail our costs, and the major expense to sales ratios have improved as follows, as compared to the previous year :

31.03.2003 31.03.2002

Manufacturing costs to embroidery turnover 50 % 62 %

Administrative expenses to embroidery turnover 7 % 32 %

Interest costs to 20% 66 % embroidery turnover *

** excluding other income

With the continued support of our customers, bankers, depositors and shareholders, we hope that the company should be able to turn around in the coming years, and honour its financial commitments to various stakeholders.

DIVIDEND

The Company is unable to pay dividend this year, since the company has utilised its cash accruals for repayments of secured loans from Punjab National Bank.

DEPOSITS

The total public deposits as on 31st March 2003 were Rs.188.15 lacs.

DIRECTORS

Mr. Anil Kumar Khanna, Director of the Company, retires at the ensuing Annual General Meeting, pursuant to Clause 108 of the Articles of Association of the Company and being eligible offer himself for reappointment.

STATUTORY INFORMATION

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to Sec.217 (2AA) of the Companies Act, 1956, with respect to Directors Responsibility Statement, it is hereby confirmed:

(i) that in the preparation of the annual accounts for the financial year ended 31.3.2003, the applicable accounting standards have been followed along with proper explanation relating to material departures.

(ii) that the Directors had selected such accounting policies and applied them consistently 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 or loss of the company for the year under review.

(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 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

(iv) that the Directors had prepared the accounts for the financial year ended 31.3.2003 on a going concernbasis.

COMPOSITION OF AUDIT COMMITTEE

The Audit Committee constituted by the Board of Directors consists of 3 non-executive directors viz. Mr. R.K Khanna, Mr. Anoop Kumar Khanna & Mr. Anil Kumar Khanna. Mr. R.K Khanna is the Chairman of the Committee. The terms of reference of the Audit Committee have been laid down by the Board at the meeting constituting the Committee, held on 31.1.2003.

AUDITORS

M/s R.S. Ahuja & Co. Chartered Accountants, Auditors of the Company, retire at the conclusion of the forthcoming Annual General Meeting and being eligible offer themselves for re-appointment.

PARTICULARS OF EMPLOYEES

The Company had no employee during the year under review whose particulars are required to be given under Section 217(2A) of the Companies Act, 1956.

FOREIGN EXCHANGE EARNINGS AND OUTGO

Information as per Section 217(i) (e) read with Companies (Disclosure of the Particulars in the Report of the Board of

Directors) Rule 1988:

Earnings by way of Exports Nil

Outgo by way of import of machinery Nil

Outgo by way of the Travelling Expenses Nil

CONSERVATION OF ENERGY

Your industry is not power intensive one, but wherever possible, necessary conservation measures have been taken.

TECHNOLOGY ABSORPTION

The Company is successfully running its embroidery unit in Gurgaon comprising 2 computerized, high quality Embroidery Machines purchased from Saurer, Switzerland.

ACKNOWLEDGEMENTS

The Directors thanks and acknowledge the sustained help and support received by the Company from Banks, Depositors, and the Customers. The Directors place on record their appreciation for the dedicated services and contribution provided by the employees of the Company.

For & on Behalf of the Board

Sd/-

R.K. KHANNA Chairman

Place: New Delhi Date : 26th June 2003


Mar 31, 2002

The Directors present the 18th Annual Report together with the Audited Accounts of the Company for the year ended 31st March, 2002.

FINANCIAL RESULTS

The financial results of the Company for the year ended 31st March, 2002 are as follows:-

Current Year Previous Year

ended 31.3.2002 ended 31.3.2001 Rs. in lacs Rs. in lacs

Operating Income 96.86 198.16

Operating expenses 180.47 173.96

Operating Profit/Loss (83.61) 24.20

Other income 230.80* 38.13 (*including writeback of loans)

Profit before non cash charges & Taxation 147.19 62.33

Less : Depreciation 162.48 31.87

Misc. Expenditure written off 0.89 0.89

Profit before tax (16.18) 29.57

Less : Provision for taxation NIL 0.31

Profit after tax (16.18) 29.26

Add : Profit Brought Forward 104.80 100.54

Less: Prior Period Adjustment NIL 25.00

Profit available for appropriation 88.62 104.80

Appropriations:

General Reserve NIL NIL

Balance C/f 88.62 104.80

OPERATIONS

The sales turnover of the company tor the last fiscal was Rs.96.86 lacs, besides write back of Rs. 177.18 lacs in respect of secured loans. Obviously, the sales turnover of Rs.96.86 lacs, was considerably less than the previous year, which was Rs. 236.29 lacs.

For the last one year, the management had requested the bankers and financial institutions, to settle the dues against various loans, because the companys financial position is very weak and fragile, and it cannot continue to pay the high interest costs and honour the repayments as per the banks / Fls sanction terms. Moreover, the company has to repay its public deposits and other loans worth Rs.361.18 lacs besides bank loans, while the company has incurred a net loss of Rs. 16.18 lacs.

As our members are aware, since 1998-99, the main business of the company is textile embroidery, besides recovering the old outstanding dues of lease and hire customers.

Lease & Hire Purchase Division

In almost all the lease and hire purchase cases, the agreement tenure has expired and there is no accrual of rental income. As such, there remained a net block of lease assets worth Rs. 255 lacs, where no lease rentals are accruing, and hence, these assets are of no value.

In almost all these lease and hire cases, the company had to file suits for recovery of the dues/repossession of the assets, but the legal process in our country is very long drawn and it is very difficult to even execute the legal decrees, owing to various technical reasons. Due to all these constraints, the company cannot recover anything from these sticky/long outstanding lessees/ hirers.

it is an open secret that, in 1998, with the increasing entry of Banks and Fls into the financial services industry, the profit margins were sliding and undoubtedly, small companies like ours could not compete with them, because huge cash resources were at their disposal. We had to stop the leasing and hire purchase business and to surrender the companys NBFC status, and the company has not undertaken any fresh lease/ hire business at all since then.

All our members are aware that for the last decade, the financial services industry is regulated and controlled by the NBFC arms of the Banks and Financial institutions, which is because, their cost of funds is very low, as compared to the cost of our borrowings from Banks and Financial Institutions, obtained for financing lease and hire purchase business.

Naturally, small NBFCs like us could not have survived the competition and would have been compelled to close the entire business.

Textile Division

In the last annual report, we had apprised our members about the global textile recession.

This recessionary trend in the textile industry began world wide in 1999 and shall take a few years to recover. The Indian Textile Industry was worst hit because its share in the global trade is minimal and even these exports diminished to a large extent. Many textile units had to operate on less than half of their installed plant capacity.

As a result, not only the prices of the finished textile products, but prices of textile machinery also fell by 30% to 40% internationally. The Government of India recognised the urgent need to support the ailing textile industry and introduced Technology Upgradation Fund Scheme, whereby textile units were given 5% interest concession on all new / expansion projects set up after 1.4.1999. Benefits by reduction of import duty from 45% to 27% were also given to the new textile units.

These measures were taken by the Government to help the textile industry in reducing its interest cost and to make them competitive globally.

Unfortunately, and beyond the control of the management, the company did not get any of these benefits, as its project was established before 1998. Owing to all these market constraints and Government regulations, the company is not

able to compete with the new units who have imported high quality / sophisticated embroidery machines at far lower prices (by 30% to 40% ), and paid 20% lower customs duties, and enjoyed 5% interest subsidy on their bank loans for capital outlay and thus bearing only 8-9% interest (whereas our loans carried 18% - 20% interest).

Due to the economic recession and lower capital cost and lower interest cost of new textile projects, the sale prices of embroidered fabric (both exports & domestic markets) fell very drastically in 2001 & 2002 and as a result, our company suffered cash loss in the last fiscal.

DIVIDEND

The management has not considered payment of dividend for this year since company has incurred losses.

DEPOSITS

The total public deposits as on 31st March, 2002 were Rs.172 lacs.

DIRECTORS

Mr. R.K. Khanna, Director of the Company, retire at the ensuing Annual General Meeting and being eligible offer himself for reappointment.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to Sec.217(2AA) of the Companies Act, 1956, with respect to Directors Responsibility Statement, it is hereby confirmed :

(i) that in the preparation of these annual accounts for the financial year ended 31.3.2002, the applicable accounting

standards have been followed along with proper explanation relating to material departures.

(ii) that the Directors had selected such accounting policies 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 at the end of the financial year and of the profit or loss of the company for the year under review.

(iii) that the Directors had taken proper and sufficient care for the maintainence of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing & detecting fraud & other irregularities; ,

(iv) that the directors had prepared the accounts for the financial year ended 31.3.2002 on a going concern basis.

PARTICULARS OF EMPLOYEES

The Company had no employee during the year under review whose particulars are required to be given under Section 217(2A) of the Companies Act, 1956.

AUDITORS

M/s.R.S. Ahuja & Co., Auditors of the Company, retire at the conclusion of the forthcoming Annual General Meeting and being eligible offer themselves for re-appointment.

AUDfTORS REPORT

Observations made by the Auditors in their Report are dealt with in the notes to the accounts at appropriate places and being self-explanatory, no further clarification is required.

FOREIGN EXCHANGE EARNINGS AND OUTGO

Information as per Section 217(i) (e) read with Companies (Disclosure of particulars in the Report of Board of Directors) Rule 1988:

Foreign Exchange Earnings - Rs.8.89 lacs

Outflow in foreign exchange - NIL

CONSERVATION OF ENERGY

Your industry is not a power intensive one, but wherever possible, necessary conservation measures have been taken.

TECHNOLOGY ABSORPTION

The Company has not imported any technology during the year.

ACKNOWLEDGEMENTS

The Directors wish to express their appreciation for the contribution made by the employees to the successful operations of the Company during the year.

The Directors also wish to sincerely thank the Financial Institutions, Banks, Depositors, Shareholders and Customers for their continuous and valuable support.

On Behalf Of The Board

Sd- R.K. KHANNA Chairman

PLACE : New Delhi DATE : July 29, 2002


Mar 31, 2001

The Directors have great pleasure in presenting the 17th Annual Report together with the Audited Accounts of the Company for the year ended 31st March, 2001.

FINANCIAL RESULTS

The financial results of the Company for the year ended 31st March, 2001 are as foliows:-

Current Year Previous Year ended 31.3.01 ended 31.3.00 Rs. in lacs Rs. in lacs

Total Income 236.29 381.54

Profit before depreciation & Taxation 62.33 118.00

Less:

Depreciation 31.87 85.25

Misc. Expenditure written off 0.89 0.89

Profit before tax 29.57 31.86

Less : Provision for taxation 0.31 Nil

Profit after tax 29.26 31.86

Add: Profit brought forward 100.54 93.63

Less: Prior period adjustment 25.00 25.00

Profit available for appropriation 104.80 100.54

Appropriations :

Proposed Dividend Nil Nil

General Reserve Nil Nil

Balance Carried Forward 104.80 100.54

AUDITORS REPORT

Observations made by the Auditiors.in their Report are dealt with in the notes to the accounts at apropriate places and being self-explanatory, no further clarification is required.

OPERATIONS

The turnover for the current financial year is Rs.236.29 lacs as compared to Rs.381.54 lacs in the previous year. The turnover has fallen due to the overall industrial slowdown during the last fiscal 2000-01, which continues in the current year also.

The exports by the textile / garment industry, have suffered a major decline, since the exports to USA have declined significantly.

Moreover, in the last budget, the Governement of India had phased out the income tax benefits under Section 80 HHC of the Income Tax Act, 1961 to exporters (other than units iocated in EOU / EPZs), which has further dampened the export momentum.

Moreover, the new units joining the industry, enjoy sizeable cost advantages, since the Government of India has extended certain incentives to NEW textile units, but these benefits are available to NEW / expanding units only, who have purchased plant & machinery in the recent past or who are purchasing capital goods now.

The Government of India had introduced the Technology Upgradation Fund Scheme for the Textile Industry, which enabled the new units which buy textile machinery, to avail the 5% interest concession against the interest paid on term loans taken from banks/ financial institutions for import of capital equipment and complete project implementation.

This 5% interest concession substantially adds to the profitability of new units, because it covers almost the entire capital costs for the project.

Further, Embroidery Machine prices have lowered by 20-25% due to the market demand and Government of India has lowered the customs duties on import of capital goods from erstwhile 45% to 27% i.e. a decrease of 18%, and owing to all these factors, we shall have to gear up to face stronger competition.

The market competition is intense owing to these cost- factors and demand needs a major boost before we can earn good profits.

REPAYMENTS OF LEASE & HIRE PURCHASE BUSINESS

The company has stopped its Leasing & Hire Purchase business long ago and we are only engaged in servicing / repaying the liabilities connected with the financing operations, i.e. the financial institutions, bankers & depositors.

DIVIDEND

The management has considered it prudent to plough back the profits into the business in view of the working Capital requirements.

DEPOSITS

The total public deposits as on 31st March, 2001 were Rs.190.22 lacs.

DIRECTORS

Mr. Anocp Kumar Khanna, Director of the Company, retires at the ensuing Annual General Meeting and being eligible offers himself for reappointment.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to Sec.217(2AA) of the-Companies Act, 1956, with respect to Directors Responsibility Statement, it is hereby confirmed -

(i) that in the preparation of the annual accounts for the financial year ended 31.3.2001, the applicable accounting standards have been followed along with proper explanation relating to material departures.

(ii) that the Directors had selected such accounting policies 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 at the end of the financial year and of the profit or loss of the company for the year under review.

(iii) that the Directors had taken proper and sufficient care for the maintainence of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing & detecting fraud & other irregularities.

(iv) that the directors had prepared the accounts for the financial year ended 31.3.2001 on a going concern basis.

PARTICULARS OF EMPLOYEES

The Company had no employee during the year under review whose particulars are required to be given under Section 217(2A) of the Companies Act, 1956.

AUDITORS

M/s. R.S. Ahuja & Co., Auditors of the comapny, retire at the conclusion of the forthcoming Annual General Meeting and being eligible offer themselves for re-appointment.

FOREIGN EXCHANGE EARNINGS AND OUTGO

Information as per Section 217(i) (e) read with Companies (Disclosure of particulars in the Report of Board of Directors) Rule 1988:

Earnings by way of commission - Rs.738,765/-

Outflow in foreign exchange - NiL.

CONSERVATION OF ENERGY

Your industry is not a power intensive one, but wherever possible, necessary conservation measures have been taken.

TECHNOLOGY ABSORPTION

The company has not imported any technology during the year.

ACKNOWLEDGEMENTS

The Directors wish to express their appreciation for the contribution made by the employees to the successful operations of the Company during the year.

The Directors also wish to sincerely thank the Financial Insitutions, Banks, Depositors, Shareholders and Customers for their continuous and valuable support.

On behalf of the Board of Directors

Place: New Delhi R. K. KHANNA

Date : June 19, 2001 Chairman



 
Subscribe now to get personal finance updates in your inbox!