Mar 31, 2014
Dear Members,
The Directors have pleasure in presenting their 21th Annual Report for
the year ended on 31st March 2014.
Financial Results:
The performance of the Company for the financial year ended March 31,
2014 is summarized below:
in lacs
PARTICULARS 2013-14 2012-13
Total Income 2249.47 2594.75
Usual Working Expenses 3580.77 3551.66
Gross Profit/(Loss)before Interest (1331.30) (956.91)
and Depreciation
Less: Interest 5342.90 4186.64
Depreciation 1497.46 1503.65
Profit /(Loss)Before Tax (8171.66) (6647.20)
Less: Provision for Current Tax - -
Provision for Deferred Tax - -
Provision for Fringe Benefit Tax - -
Profit /(Loss)After Tax before Extra
Ordinary & Exceptional Items (8171.66) (6647.20)
Less : Exceptional Items - -
Profit /(Loss)After Tax & After Extra
Ordinary Items (8171.66) (6647.20)
before Exceptional Items
Add : Extra Ordinary Items - -
Profit /(Loss)After Tax & After Extra
Ordinary & Exceptional Items (8171.66) (6647.20)
Add : Balance brought forward from last Year - -
Balance Transferred to Balance Sheet (8171.66) (6647.20)
Results of Operations
During the year under review sale has been reduced to Rs. 2241.75 lacs
from Rs. 2587.50 Lacs. Company has started receiving orders gradually.
But still orders are very less comparing to production capacity of the
Company. Management is constantly focused on marketing. Due to lack of
funds and lower orders the growth in Company''s sale is restricted.
Company has not been able to sale the Fabric of Premium Quality due to
lack of demand. Premium quality fabric gives higher margins. Under
utilization of capacity accompanied with higher debt cost, lower
margins have resulted into the loss of Rs. 8171.66 lacs (before Extra
Ordinary Item) as against the net loss of Rs. 6647.20 Lacs in previous
year.
Dividend:
During the year under review the Company has not earned profit hence
your Board of Directors'' do not recommend any dividend for the year.
Fixed Deposits
During the year under review the Company has not raised any amount by
way of Fixed Deposits.
Industrial Relations
During the year, industrial relations have been cordial.
Directors
In accordance with the provision of section 152 of Company Act, 2013
read with Companies (Management & Administration) Rules, 2014 Mrs. Rama
Jawahar Swetta, Director of the Company retires by rotation and being
eligible, has offered herself for reappointment at the ensuing Annual
General Meeting.
In terms of provision of Section 149 & 152 of Companies Act 2013 which
become effective from 1st April 2014, an Independent Director of a
Company can be appointed for a term of five consecutive years and shall
not be liable to retired by rotation.
To comply with above provision it is proposed to appoint Mr. Dhananjay
Charane, Mr. Manohar Dudhane as Independent Director of the Company for
a period up to 31st March 2016 who shall not be liable to retire by
rotation. Your board recommends their appointments.
The Company has received declaration from all the Independent Directors
of the Company conforming that they meet the criteria of Independence
as prescribed both under sub-sec. 149 of the Companies Act, 2013 and
under clause 49 of the listing agreement with the stock exchange.
During the year Mr. Abhishek Mohite, Mr. Yashawant Shilalkar, Mr.
Manohar Kanitkar has resigned from their post of Director and Mr.
Manohar Dudhane was appointed as an Independent Director.
Corporate Governance
In order to maintain high standards of Corporate Governance and to be
complied with the provisions of clause 49 of Listing Agreement the
Company has formed following committees :
I. Audit Committee: The primary objective of Audit Committee is to
monitor and effectively supervise the Company''s financial reporting
process with a view to provide accurate, timely and proper disclosures
and to maintain integrity and quality of financial reporting. Its
Constitution, activities of this committee has been elaborated in the
report of Corporate Governance. Report on Corporate Governance along
with Auditors Certificate on Compliance with the conditions of
Corporate Governance as stipulated in clause 49 of listing agreement is
provided elsewhere in the Annual Report.
II. Share Transfer and Investor Grievance Committee : The Board of
Directors'' has constituted "Share Transfer and Investor Grievance
Committee" to look after all the works relating to shares and
shareholders grievance i.e., approval of
transfer/transmission/demat/remat of shares, issue of duplicate,
split-up, consolidation, renewal of share certificate, non receipt of
balance sheet, non receipt of declared dividends etc. Its constitution
and activities have been elaborated in the report of Corporate
Governance.
III. Remuneration Committee : The Board of Directors has constituted
"Remuneration Committee" to decide and approve the terms and conditions
for appointment of Executive Directors of the Company and remuneration
payable to other Directors and Executives of the Company and other
matters related thereto. Its constitution, activities of this committee
have been elaborated in the report of Corporate Governance.
Auditors Qualification In Audit Report
Regarding the qualification of Auditor in Audit report, Directors''
state as under
Point No. [ix] a) & b) : Due to low turnover, lower capacity
utilization with higher debt cost the Company is facing liquidity
problem and hence there is non - payment of statutory dues in time. The
Company is taking necessary steps to pay off its statutory dues.
Point No. [x] : Due to lower capacity utilization, higher debt cost and
lower margin the Company has incurred cash loss of Rs. 6674.22 lacs.
Point No. [xi] : The lower sale and high fixed cost has adversely
affected the liquidity/cash flows of the Company resulting into delay
in payment of Interest/Installments to Banks. The Company is exploring
different ways of reducing the debt burden.
Directors'' Responsibility Statement
Pursuant to requirement in respect to Directors'' Responsibility
Statement, it is hereby confirmed that:
i. In preparation of the annual audited accounts, the applicable
accounting standards have been followed as per the requirement set out
under Schedule VI of the Company Act, 1956 and that there are no
material departures from the same;
ii. The Directors 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 as at March 31, 2014 and of the Loss of the Company for
the year ended on that date.
iii. The Directors have taken proper and sufficient care 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; and
iv. The Directors have prepared the annual accounts of the Company on a
''Going Concern'' basis.
Particulars of Employees
As per the Statement of Particulars of Employees required U/S 217(2A)
Of the Company Act 1956 read with the Companies (particulars of
employees)Rules 1975, limit of salary, increased up to Rs. 60 Lacs p.a.,
so this becomes inapplicable to our Company.
Auditors
M/s. Shrikant & Co., Chartered Accountants, Statutory Auditors of the
Company, hold office until the conclusion of ensuing Annual General
Meeting and being eligible offered themselves for reappointment as per
the section 141 of Companies Act 2013.
Members are requested to consider their reappointment and fix their
remuneration.
Acknowledgment
Your Directors would like to express their grateful appreciation for
assistance and co-operation received from Banks, Government
Authorities, Customers, Vendors and Members during the year under
review.
Your Directors also wish to place on record their deep sense of
appreciation for the committed services of Executives, Staff and
Workers of the Company.
For and on behalf of Board of Directors
Date : 14th August, 2014 Anasaheb R Mohite
Place : Kolhapur Chairman & Managing Director (DIN : 00317676)
Mar 31, 2013
The Directors have pleasure in presenting the 20th Annual Report for
the year ended on 31st March 2013. Financial Results: The performance
of the company for the financial year-ended March 31, 2013 is
summarized below:
(Rs. in Lacs)
Particulars 2012-13 2011-12
Total Income 2594.75 2115.92
Usual Working Expenses 3551.66 3515.62
Gross Profit/(Loss)before
Interest and Depreciation (956.91) (1399.70)
Less: Interest 4186.64 5132.89
Depreciation 1503.65 1571.94
Profit/(Loss)Before Tax (6647.20) (8104.53)
Less: Provision for Current Tax
Provision for Deferred Tax
Provision for Fringe Benefit Tax
Profit /(Loss)After Tax before
Extra Ordinary and Exceptional Items (6647.20) (8104.53)
Less: Exceptional Items
Profit /(Loss)After Tax & After
Extra Ordinary Items before (6647.20) (8104.53)
Exceptional Items Add:
Extra Ordinary Items
Profit /(Loss)After Tax & After
Extra Ordinary & Exceptional Items (6647.20) (8104.53)
Add: Balance brought forwar
from last Year
Balance Transferred to
Balance Sheet (6647.20) (8104.53)
Results of Operations
During the year under review sale has been increased by 22.81% from Rs.
2106.59 Lacs in previous year to Rs. 2587.07 Lacs in the current year.
Company has started receiving orders gradually. But still orders are
very less comparing to production capacity of the company. Management
is constantly focused on marketing. Due to lack of funds and lower
orders the growth in Company''s sale is restricted.
Company has not been able to sale the Fabric of Premium Quality due to
lack of demand. Premium quality fabric gives higher margins. Under
utilization of capacity accompanied with higher debt cost, lower
margins have resulted into the loss of Rs. 6647.20 Lacs (before Extra
Ordinary Item) as against the net loss of Rs. 8104.53 Lacs in previous
year.
Dividend:
During the year under review the company has not earned profit hence
your Board of Directors'' do not recommend any dividend for the year.
Fixed Deposits
During the year under review the company has not raised any amount by
way of Fixed Deposits.
Industrial Relations
During the year, industrial relations have been cordial
Directors
Mr. Ravi Yashwant Shiralkar, Director of the Company retires by
rotation and being eligible, has offered himself for reappointment at
the ensuing Annual General Meeting.
Board recommends above appointments.
Corporate Governance
In order to maintain high standards of Corporate Governance and to be
complied with the provisions of clause 49 of Listing Agreement the
company has formed following committees.
I. Audit Committee: The primary objective of Audit Committee is to
monitor and effectively supervise the company''s financial reporting
process with a view to provide accurate, timely and proper disclosures
and to maintain integrity and quality of financial reporting. Its
Constitution, activities of this committee has been elaborated in the
report of Corporate Governance. Report on Corporate Governance along
with Auditors certificate on compliance with the conditions of
Corporate Governance as stipulated in clause 49 of listing agreement is
provided elsewhere in the Annual Report.
II. Share Transfer and Investor Grievance Committee: The Board of
Directors'' has constituted "Share Transfer and Investor Grievance
Committee" to look after all the works relating to shares and
shareholders grievance, i.e., approval of
transfer/transmission/demat/remat of shares, issue of duplicate,
split-up, consolidation, renewal of share certificate, non receipt of
balance sheet, non receipt of declared dividends etc. Its constitution
and activities have been elaborated in the report of Corporate
Governance
III. Remuneration Committee: The Board of Directors has constituted
"Remuneration Committee" to decide and approve the terms and conditions
for appointment of Executive Directors of the Company and remuneration
payable to other Directors and Executives of the Company and other
matters related thereto. Its constitution, activities of this committee
have been elaborated in the report of Corporate Governance
Auditors Qualification In Audit Report
Regarding the qualification of Auditor in Audit report, Directors''
state as under
Point No. ix a) & b) Due to low turnover, lower capacity utilization
with higher debt cost the company is facing liquidity problem and hence
there is non - payment of statutory dues in time. The company is taking
necessary steps to pay off its statutory dues.
Point No. x : Due to lower capacity utilization, higher debt cost and
lower margin the company has incurred cash loss of Rs. 5143.55 Lacs.
Point No. xi: The lower sale and high fixed cost has adversely affected
the liquidity/cash flows of the company resulting into delay in payment
of Interest/Installments to Banks. The company is exploring different
ways of reducing the debt burden.
Directors'' Responsibility Statement
Pursuant to requirement under Section 217 (2AA) of the Companies Act,
1956 with respect to Directors'' Responsibility Statement, it is hereby
confirmed that:
i. In preparation of the annual accounts, the applicable accounting
standards have been followed and that there are no material departures
from the same;
ii. The Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as give a true and fair view of the state of affairs of
the Company as at March 31, 2013 and of the Loss of the Company for the
year ended on that date.
iii. The Directors have taken proper and sufficient care 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; and
iv. The Directors have prepared the annual accounts of the Company on
a ''Going Concern'' basis.
Particulars of Employees
Present limit of salary, increased up to Rs. 60 Lacs p.a., so this
becomes inapplicable to our Company.
Auditors
M/s. Shrikant & Co., Chartered Accountants, Statutory Auditors of the
Company, hold office until the conclusion of ensuing Annual General
Meeting and being eligible offered themselves for reappointment.
The company has received letter from M/s. Shrikant & Co. to the effect
that their reappointment if made would be within prescribed limits
under section 224 (IB) of the Companies Act, 1956 and that they are not
disqualified for such reappointment within the meaning of section 226
of the said Act.
Members are requested to consider their reappointment and fix their
remuneration. Acknowledgement
Your Directors would like to express their grateful appreciation for
assistance and co-operation received from Banks, Government
Authorities, Customers, Vendors and Members during the year under
review.
Your Directors also wish to place on record their deep sense of
appreciation for the committed services of Executives, Staff and
Workers of the company.
For and on Behalf of the Board of Directors
Anasaheb R Mohite
Chairman & Managing Director Kolhapur
August 26, 2013
Mar 31, 2012
The Directors have pleasure in presenting the 19th Annual Report for
the year ended on 31st March 2012. Financial Results:
The performance of the company for the financial year ended March 31,
2012 is summarized below:
(Rs. in Lacs)
Particulars 2011-12 2010-11
Total Income 2115.92 4968.33
Usual Working Expenses 3515.62 8444.09
Gross Profit/(Loss)before
Interest and Depreciation (1399.70) (3475.76)
Less: Interest 5132.89 1933.44
Depreciation 1571.94 1574.58
Profit/(Loss)Before Tax (8104.53) (6983.78)
Less: Provision for Current Tax - -
Provision for Deferred Tax - -
Provision for Fringe Benefit Tax - -
Profit /(Loss)After Tax before
Extra Ordinary and Exceptional
Items (8104.53) (6983.78)
Less: Exceptional Items - -
Profit /(Loss)After Tax &
After Extra Ordinary Items
before (8104.53) (6983.78)
Exceptional Items
Add: Extra Ordinary Items - 4.01
Profit /(Loss)After Tax &
After Extra Ordinary &
Exceptional Items (8104.53) (6979.77)
Add: Balance brought
forward from last Year - -
Balance Transferred
to Balance Sheet (8104.53) (6979.77)
Results of Operations
During the year under review sale has been decreased by 57.53% from Rs.
4959.83 Lacs in previous year to Rs. 2106.59 Lacs in the current year.
Company has started receiving orders gradually. But still orders are
very less comparing to production capacity of the company. Management
is constantly focused on marketing. Due to lack of funds and lower
orders Company's sale is decreasing as compared to previous year.
Company has not been able to sale the Fabric of Premium Quality due to
lack of demand. Premium quality fabric gives higher margins. Under
utilization of capacity accompanied with higher debt cost, lower
margins have resulted into the loss of Rs. 8104.53 Lacs (before Extra
Ordinary Item) as against the net loss of Rs. 6979.77 Lacs in previous
year.
Dividend:
During the year under review the company has not earned profit hence
your Board of Directors' do not recommend any dividend for the year.
Fixed Deposits
During the year under review the company has not raised any amount by
way of Fixed Deposits.
Industrial Relations
During the year, industrial relations have been cordial
Directors
Mr. Abhishek Anasaheb Mohite, Director of the Company retires by
rotation and being eligible, has offered himself for reappointment at
the ensuing Annual General Meeting.
Board recommends above appointments.
Corporate Governance
In order to maintain high standards of Corporate Governance and to be
complied with the provisions of clause 49 of Listing Agreement the
company has formed following committees.
I. Audit Committee: The primary objective of Audit Committee is to
monitor and effectively supervise the company's financial reporting
process with a view to provide accurate, timely and proper disclosures
and to maintain integrity and quality of financial reporting. Its
Constitution, activities of this committee has been elaborated in the
report of Corporate Governance. Report on Corporate Governance along
with Auditors certificate on compliance with the conditions of
Corporate Governance as stipulated in clause 49 of listing agreement is
provided elsewhere in the Annual Report.
II. Share Transfer and Investor Grievance Committee: The Board of
Directors' has constituted "Share Transfer and Investor Grievance
Committee" to look after all the works relating to shares and
shareholders grievance, i.e., approval of
transfer/transmission/demat/remat of shares, issue of duplicate,
split-up, consolidation, renewal of share certificate, non receipt of
balance sheet, non receipt of declared dividends etc. Its constitution
and activities have been elaborated in the report of Corporate
Governance
III. Remuneration Committee: The Board of Directors has constituted
"Remuneration Committee" to decide and approve the terms and conditions
for appointment of Executive Directors of the Company and remuneration
payable to other Directors and Executives of the Company and other
matters related thereto. Its constitution, activities of this committee
have been elaborated in the report of Corporate Governance
Auditors Qualification
- In Audit Report
Regarding the qualification of Auditor in Audit report, Directors'
state as under
Point No. ix a) & b) Due to low turnover, lower capacity utilization
with higher debt cost the company is facing liquidity problem and hence
there is non - payment of statutory dues in time. The company is taking
necessary steps to pay off its statutory dues.
Point No. x: Due to lower capacity utilization, higher debt cost and
lower margin the company has incurred cash loss of Rs. 6532.59 Lacs.
Point No. xi: The lower sale and high fixed cost has adversely affected
the liquidity/cash flows of the company resulting into delay in payment
of Interest/Installments to Banks. The company is exploring different
ways of reducing the debt burden.
Directors' Responsibility Statement
Pursuant to requirement under Section 217 (2AA) of the Companies Act,
1956 with respect to Directors' Responsibility Statement, it is hereby
confirmed that:
i. In preparation of the annual accounts, the applicable accounting
standards have been followed and that there are no material departures
from the same;
ii. The Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as give a true and fair view of the state of affairs of
the Company as at March 31, 2012 and of the Loss of the Company for the
year ended on that date.
iii. The Directors have taken proper and sufficient care 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; and
iv. The Directors have prepared the annual accounts of the Company on
a 'Going Concern' basis.
Particulars of Employees
Present limit of salary, increased up to Rs. 60 Lacs p.a., so this
becomes inapplicable to our Company.
Auditors
M/s. P. M Vardhe and Co., Chartered Accountants, Statutory Auditors of
the Company, hold office until the conclusion of ensuing Annual General
Meeting and being eligible offered themselves for reappointment.
The company has received letter from M/s. P. M. Vardhe & Co. to the
effect that their reappointment if made would be within prescribed
limits under section 224 (IB) of the Companies Act, 1956 and that they
are not disqualified for such reappointment witfrfn the meaning of
section 226 of the said Act.
Members are requested to consider their reappointment and fix their
remuneration.
Acknowledgement
Your Directors would like to express their grateful appreciation for
assistance and co-operation received from Banks, Government
Authorities, Customers, Vendors and Members during the year under
review.
Your Directors also wish to place on record their deep sense of
appreciation for the committed services of Executives, Staff and
Workers of the company.
For and on Behalf of the Board of Directors
Abhishek A. Mohite
July 4,2012 Director (Marketing & Strategy)
Mar 31, 2010
The Directors have pleasure in presenting the 17lh Annual Report for
the year ended on 31 st March 2010.
Financial Results:
The performance of the company for the financial year ended March 31,
2010 is summarized below:
(Rs. in Lacs)
Particulars 2009-10 2008-09
Total Income 4043.37 2395.25
Usual Working Expenses 4108.97 885.63
Gross Profit/(Loss)before
Interest and Depreciation (65.60) 1509.62
Less:Interest 2236.89 1267.59
Depreciation 1436.56 1126.83
Profit Before Tax (3739.05) (884.80)
Less: Provision for Current Tax - -
Provision for Deferred Tax - 389.48
Provision for Fringe Benefit Tax - 3.78
Profit After Tax before
Extra Ordinary Items (3739.05) (1278.06)
Add: Extra Ordinary Items 493.28 -
Profit After Tax & After
Extra Ordinary Items (3245.77)
Add: Balance brought
forward from last Year 3459.53 4737.59
Balance Transferred to
Balance Sheet 213.76 3459.53
Results of Operations
During the year under review sale has been increased by 67.60% from Rs.
2378.09 Lacs in previous year to Rs. 3985.71 Lacs in the current year.
Though the foreign markets are showing sign of recovery but still there
is brunt of post recession phase. Company has started receiving orders
gradually. Management is constantly focused on marketing. Due to this
only Company has made higher sale as compared to previous year. However
current order position is inadequate vis a vis capacity of the Company.
Though the sale has been increased but still Company has not been able
to sale the Fabric of Premium Quality due to lack of demand. Premium
quality fabric gives higher margins. Under utilization of capacity
accompanied with higher debt cost, lower margins have resulted into the
loss of Rs. 3739.05 Lacs (before Extra Ordinary Item) as against the
net loss of Rs. 1278.06 Lacs in previous year.
Dividend:
During the year under review the company has not earned profit hence
your Board of Directors do not recommend any dividend for the year.
Changes in Capital Structure
Reclassification of Authorised Capital of the Company
In terms of approval of members at the Extra Ordinary General Meeting
held on March 15, 2010 the company has reclassified its previous
Authorized Capital of the company of Rs. 24,00,00,000/- (Rupees Twenty
Four Crores Only) divided into 1,50,00,000 (One Crore Fifty Lacs)
Equity shares of Rs. 10/- (Rupees Ten Only) each and 90,00,000 (Ninety
Lacs) 6% Non Cumulative Redeemable Preference Shares of Rs. 10/-(Rupees
Ten Only) each into 24,00,00,000/ (Rupees Twenty Four Crores Only)
divided into 2,40,00,000 (Two Crores Forty Lacs) Equity shares of Rs.
10/- (Rupees Ten Only) each
Allotment of Equity Shares on Preferential Basis
In terms of approval of members at the Extra Ordinary General Meeting
held on March 15, 2010 the company has allotted 20,00,000 Equity Shares
of the face value Rs. 10/- each for cash at a price of Rs.25/- per
share (including a premium of Rs.l5A per share) on preferential basis
to Mrs Rama J. Swetta under chapter VII of Securities and Exchange
Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2009
Fixed Deposits
During the year under review the company has not raised any amount by
way of Fixed Deposits. As on March 31, 2010 no deposit or interest
thereon is outstanding. During the year under review the company has
repaid Deposit of Rs. 446.00 Lacs. Information, as required under the
Miscellaneous Non-Banking Companies (Reserve Bank) Direc tions 1977, is
annexed.
Industrial Relations
During the year, industrial relations have been cordial Directors
Shri. Ravi Y. Shiralkar, Director of the Company retire by rotation and
being eligible, has offered himself for reappoint ment at the ensuing
Annual General Meeting.
Shri. Shreedhar V. Padhye was appointed as a Director of the company on
June 22, 2009 in the casual vacancy caused by the resignation of Mr.
Shriprakash M. Dhopeshwarkar and whose term of office expires at this
Annual General Meeting.
Mr. Manohar Kanitkar was appointed as an Additional Director of the
company by Board with effect from May 17, 2010. His term of office
expires at mis Annual General Meeting
Pursuant to section 257 (1) of the Act, the Company has received
notices in writing from members along with a deposit of requisite fee
proposing the candidature of Shri. Shreedhar V. Padhye & Shri. Manohar
Kanitkar for the office of the Director of the company Board recommends
above appointments.
Corporate Governance
In order to maintain high standards of Corporate Governance and to be
complied with the provisions of clause 49 of Listing Agreement the
company has formed following committees.
I. Audit Committee: The primary objective of Audit Committee is to
monitor and effectively supervise the companys financial reporting
process with a view to provide accurate, timely and proper disclosures
and to maintain integrity and quality of financial reporting. Its
Constitution, activities of this committee has been elaborated in the
report of Corpo rate Governance. Report on Corporate Governance along
with Auditors certificate on compliance with the conditions of
Corporate Governance as stipulated in clause 49 of listing agreement is
provided elsewhere in the Annual Report.
II.Share Transfer and Investor Grievance Committee: The Board of
Directors has constituted "Share Transfer and Investor Grievance
Committee" to look after all the works relating to shares and
shareholders grievance, i.e., approval of
transfer/transmission/demat/remat of shares, issue of duplicate,
split-up, consolidation, renewal of share certifi cate, non receipt of
balance sheet, non receipt of declared dividends etc. Its constitution
and activities has been elaborated in the report of Corporate
Governance
III. Remuneration Committee: The Board of Directors has constituted
"Remuneration Committee" to decide and approve the terms and conditions
for appointment of Executive Directors of the Company and remuneration
payable to other Directors and Executives of the Company and other
matters related thereto. Its constitution, activities of this committee
has been elaborated in the report of Corporate Governance
Auditors Qualification
I. In Corporate Governance Certificate: As on March 31 2010 the Company
complies with all the requirements of Clause 49 of Listing Agreement
except provision regarding Board Composition. Pursuant to allotment of
20,00,000 shares on a preferential basis to Mrs. Rama J. Swetta on
March 25, 2010, Mrs. Swetta has ceased to be independent "Director of
the company from March 25, 2010. Due to this company did not comply
with the requirement of having one-half of the Board of the company
consists of Independent Directors. However on May 7, 2010 Mr. R. M.
Mohite resigned from the Directorship of the Company. Also on May
17,2010 Board of Directors of the Company by circular resolution
appointed Mr. Manohar Kanitkar, as an Additional Director of the
Company. Due to these developments now (as on date of this report) the
Company complies with all the provisions of Listing Agreement
II.In Audit Report
Regarding the qualification of Auditor in Audit report, Directors
state as under
- Point No. ix a) & b) Due to low turnover, lower capacity utilization
with higher debt cost the company is facing liquidity problem and hence
there is non - payment of statutory dues in time.
- Point No. x: Due to lower capacity utilization, higher debt cost and
lower margin the company has incurred loss of Rs. 3245.77Lacs. However
majority portion of loss has been adjusted against previous years
profits. After adjusting the loss of current year with previous Balance
in Profit & Loss account still there is accumulated profit of Rs.
213.76 Lacs.
- Point No. xi: The lower sale and high fixed cost has adversely
affected the liquidity/cash flows of the company resulting into delay
in payment of Interest/Installments to Banks.
Directors Responsibility Statement
Pursuant to requirement under Section 217 (2AA) of the Companies Act,
1956 with respect to Directors Responsi bility Statement, it is hereby
confirmed that:
i. In preparation of the annual accounts, the applicable accounting
standards have been followed and that there are no material departures
from the same;
ii. The Directors have selected such accounting policies and applied
them consistently and made judgments and esti mates that are reasonable
and prudent so as give a true and fair view of the state of affairs of
the Company as at March 31, 2010 and of the Loss of the Company for the
year ended on that date.
iii. The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accor dance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities; and
iv. The Directors have prepared the annual accounts of the Company on a
Going Concern basis.
Particulars of Employees
As required under the provisions of Section 217 (2A) of the Companies
Act, 1956, read with the Companies (Particu- lars of Employees) Rules
1975, as amended, the names and other particulars of employees are set
out in the annexure included in this report.
Auditors
M/s. B. J. Ingrole and Co., Chartered Accountants, existing Statutory
Auditors of the Company, have expressed in writing their unwillingness
pursuant to section 224 (2) (b) of the Companies Act, 1956 for
re-appointment as Auditors of the Company on their retirement at
ensuing Annual General Meeting (AGM). Based on the recommendation of
the Audit Committee, the Board of Directors of the Company proposed the
appointment of M/S. Jaykumar D. Shetti & Co., Chartered Accountants, as
the Auditors of the Company at the ensuing AGM.
M/S. Jaykumar D. Shetti & Co., have expressed their willingness to act
as Auditors of the Company and, if appointed, have further confirmed
that the said appointment would be in conformity with the provisions of
Section 224 (IB) of the Companies Act, 1956
Members are requested to consider their reappointment and fix their
remuneration.
Acknowledgement
Your Directors would like to express their grateful appreciation for
assistance and co-operation received from Banks, Government
Authorities, Customers, Vendors and Members during the year under
review.
Your Directors also wish to place on record their deep sense of
appreciation for the committed services of Executives, Staff and
Workers of the company.
for and on Behalf of the Board of Directors
Kolhapur Anasaheb R Mohite
May 27,2010 Chairman & Managing Director
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