Mar 31, 2015
Dear Members,
The Directors have pleasure in presenting their 23rd Annual Report and
the audited financial statements for the financial year ended 31 "March
2015
1 Financial Results
The summarized financial results for the financial year ended 31st
March 2015 are presented below:
Rs. In lacs
Details Financial Financial
year ended year ended
31st March 31st March
2015 2014
Income from operations 5093.03 2808.90
Profit before interest, 107.93 47.66
depreciation and taxation
Finance cost 21.60 17.63
Depreciation 17.45 15.73
Profit before tax 68.88 14.30
Taxation 18.00 3.21
Profit after tax 50.88 11.09
Balance brought forward from 933.18 922.09
previous year
Disposable surplus available 984.06 933.18
after adjustments
Appropriations:
Proposed dividend 35.90 -
Dividend distribution tax 7.35 -
Balance carried to balance 940.81 933.18
sheet
The income during the financial year ended 31st March 2015 is Rs.
5093.03 lacs compared to Rs. 2828.90 in the previous year- an increase
of 81.31%. The profit after tax for the financial year ended 31st March
2015 is Rs. 50.88 lacs compared to Rs. 11.09 lacs - an increase of 359%
over the previous year. The sales by way of exports is Rs. 4602.87 lacs
during the year ended 31st March 2015 compared to Rs. 2477.95 lacs in
the previous year. Export sales constitute about 96% of the total sales
during the year.
2 Dividend and Reserves
The Board of Directors has recommended a dividend of Rs. 0.50 per share
(5%) for the financial year ended 31s' March 2015 aggregating to
Rs.35.90 lacs. During the year under review, no amount is transferred
to general reserves and the surplus amount of Rs. 940.81 lacs is
carried over to the balance sheet.
3 Share Capital
The paid up equity share capital of the Company as at 31st March 2015
stood at Rs 718.05 lacs. During the year under review, the Company has
not issued shares with differential voting rights nor has it granted
any stock options or sweat equity. None of the directors of the Company
hold instruments convertible into equity shares during the financial
year ended 31st March 2015.
4 Finances Accounts
The Company prepares its financial statements in accordance with the
requirements of the Companies Act 2013 and the Generally Accepted
Accounting Principles (GAPP)as applicable in India. The financial
statements have been prepared on historical cost basis. The estimates
and judgments relating to the financial statements are made on a
prudent basis so as to reflect in a true and fair manner, the form and
substance of transactions and reasonably present the Company's state of
affairs, profits and cash flows for the financial year ended 31st March
2015.
5 Business Risks
Like any other company in the textiles sector, the Company is exposed
to business risks which can be internal and external. Increase in oil
prices, volatility in the exchange rate of rupee vis-a- vis other
principal currencies, increase in inflation leading to reduced spending
power, are some of the risks faced by the Company. The expected slow
down in the growth in economies in Euro Zone, USA, South American
countries, Russia, Middle East and other Asian countries may impact
export sales of the Company.
The Board of Directors is well aware of these risks and through the
operational management, continues to monitor them and guides in taking
prompt action to mitigate the risks.
6 Corporate Social Responsibility
Section 135 of the Companies At 2013 and the rules made there under
relating to corporate social responsibility are not applicable to the
Company during the financial year ended 31 st March 2015.
7 Subsidiaries
The Company has no subsidiary company.
8 Corporate Governance
As per SEBI circular CIR/CFD/POLICY CELL/7/2014 dated 15th September
2014, clause 49 of the listing agreement relating to corporate
governance is not applicable to the Company.
9 Listing of shares in BSE
During the financial year under report, the equity shares issued by the
Company are listed at BSE.
10 Extract of Annual Return
The extract of annual return in form MGT 9, as required under section
92 of the Companies Act 2013, as at 31st March 2015, is annexed to this
report as Annexure A which forms part of this report.
11 Key Managerial Personnel
During the year under review, the Company has appointed following
persons as its Key Managerial Personnel
Sr No. Name Designation
1 Shri Dayaram Khanchandani Chairman and Whole time
Director
2 Shri Manish Murli Dialani Managing Director
3 Shri Shashi Kant Vyas Chief Financial Officer
4 Ms. Prakriti Sethi Company Secretary
12 Board of Directors
Appointment
During the year, the Board had appointed, on the recommendation of the
Remuneration and Nomination Committee, Shri Manish M Dialani as the
additional director from 29th September 2014 and as the Managing
Director from 30th October 2014 for a period of 5 years subject to
approval of the members at the ensuing annual general meeting.
During the year, the Company has appointed Smt. Lajwanti Murli Dialani
(DIN 05201148) as additional director with effect from 30.03.2015 . As
additional director, she holds office till the ensuring annual general
meeting. The Company has received notice of her appointment with
requisite deposits from a member.
Resignation
Smt. Pushpa Khanchandani (DIN 00174337 ) resigned as Director from
30.10.2014. The Board places on record its appreciation of the services
rendered by Smt. Pushpa Khanchandani. Independent Directors
All Independent directors have given declaration that they meet the
criteria of independence as stipulated under section 149(6) of the
Companies Act 2013.
As per provisions of Section 152 of the Companies Act 2013 and in
accordance with the provisions of the Articles of Association of the
Company, Shri Dayaram Khanchandani retires by rotation and being
eligible offers himself for re appointment.
13 Number of meetings of the Board
During the year under report, the board met 12- times on 15.05.2014,
26.05.2014, 21.06.2014, 30.06.2014, 31.07.2014, 01.09.2014, 01.10.2014,
30.10.2014, 22.12.2014, 07.02.2015, 18.03.2015 & 30.03.2015
14 Board Evaluation
The performance evaluation of the independent directors was completed.
The performance evaluation of the Chairman and non-independent
directors was carried out by the independent directors and was accepted
by the Board.
15 Particulars of loans, guarantees or investments by the Company
During the year, the Company has not given any loan or issued any
guarantee in connection with the loan.
The Company has entered into an agreement with the directors and
members of Kolba Farm Fab Private Limited (Kolba), a company based in
Surat, Gujarat, to acquire the said company's shares subject to certain
terms and conditions. Kolba's business activities are in sync with the
Company's business. If the agreement materialises, Kolba would become
the subsidiary of the Company during the current financial year. The
acquisition would greatly supplement the ever increasing business
activities of the Company.
16 Whistle Blower policy
The Company has in place a mechanism to report genuine concerns or
grievances.
17 Remuneration and Nomination policy
The Board of directors has adopted a policy framework for selection,
appointment and remuneration of directors, key managerial personnel and
senior management of the Company.
18 Related party transactions
All transactions entered with related parties for the financial year
ended 31st March 2015 were on arm's length basis and in the ordinary
course of business. Hence provisions of Section 188 of the Companies
Act 2013 are not attracted and disclosure in form AOC 2 is not
required.
All related party transactions are placed before the Audit Committee
and the Board of Directors for approval.
19 Significant and material orders passed by the regulators or courts
There are no significant and material orders passed by the regulators
or courts against the Company during the year.
20 Directors responsibility statement
To the best of knowledge and belief and according to the information
and explanation obtained by them, your directors make the following
statement in terms of section 134(3)(c) of the Companies Act 2013:
(i) That in preparation of the annual accounts for the year ended 31st
March 2015 the applicable accounting standards have been followed along
with proper explanation relating to material departures, if any;
(ii) And applied them consistently and made judgments and estimates
that are reasonable and prudent so as to give a true and fair view of
the state of affairs of the Company as at 31st March 2015 and of the
profit of the Company for the year ended on that date;
(iii) That the directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act 2013 for safeguarding the assets of the
Company and for preventing and detecting fraud and other irregularities
(iv) That the annual accounts have been prepared on a going concern
basis
(v) That the directors had devised proper systems to ensure compliance
with the provisions of all applicable laws and that such systems were
adequate and operating effectively.
21 Statutory auditors
M/s. Vimal Agrawal & Associates, Chartered Accountants, who are
statutory auditors of the Company hold office upto the forthcoming
annual general meeting. If appointed, Under section 139 of the
Companies Act 2013, they shall hold office from the conclusion of the
ensuing annual general meeting till the conclusion of the annual
general meeting relating to the financial year ending 31st March 2018.
The Company has obtained written confirmation from the auditors that
their appointment, if made, would be in conformity with the limits
specified in the said section.
Qualification in the auditor's report
With reference to the auditor's remarks in regard to AS 15 for
Employees Benefits (Revised 2005) for provision of gratuity, the
Directors clarify that the liability for gratuity payable by the
Company is being worked out in consultation with LIC and appropriate
policy as advised by LIC will be taken in due course, during the
current financial year.
22 Cost Audit
The provisions of the Companies (Cost Records and Audit) Rules 2014 are
not applicable to the Company's operations.
23 Secretarial Audit Report
As required under section 204 of the Companies Act 2013, the
Secretarial Audit Report from Mr. Suresh Chandra Sharma, S. C. Sharma
& Associates, Practising Company Secretary (CP No 3374) is annexed to
this report as Annexure B which forms part of this report.
With reference to the observations in the secretarial audit report in
the matter of appointment of independent directors, the Directors state
that the Company has complied with the provisions of section 149 of the
Companies Act 2013 and no action need to be taken further.
24 Internal control system and their adequacy
The Company has an effective internal control system commensurate with
its size and scale of its operations. The internal audit is entrusted
to M/s M/s Madhur & Associates, Chartered Accountants.
The Audit Committee reviews the adequacy and effectiveness of the
internal control systems and suggests improvements, wherever required.
25 Environment and Safety
The Company's operations do not pose any environment hazards and are
conducted in such a manner that safety of all concerned and compliances
with environmental regulations is ensured.
26 Statutory Information
(A) Conservation of energy:
I. Power Consumption:
Year Ended Year Ended
31.03.2015 31.03.2014
1. Electricity
Purchased units 46110 15510
Total Amount (in Rs.) 334637 119033
Rate per unit (in Rs.) 7.26 7.67
2. Diesel
Purchased (in liters) NIL NIL
Total Amount(in Rs.) NIL NIL
Rate per liter (in Rs.) NIL NIL
3. Coal NIL NIL
4. Furnance Oil NIL NIL
5. Other Internal Generation NIL NIL
II. Consumption per unit of Production
Year Ended Year Ended
31.03.2015 31.03.2014
1. Electricity units NIL NIL
permtr. fabrics
The Consumption of energy has increased with the increased business
activities of the Company during the year. The Management is taking all
possible efforts to avoid wasteful consumption of energy.
(B) Technology Absorption: The Company has no technology agreement and
the issue of technology absorption does not arise.
(C) Foreign exchange out go and expenses
Foreign exchange earnings: Rs 45,91,40,093/-
Foreign Exchange outgo Rs. NIL
27 Acknowledgment
The Directors wish to place on record their appreciation of the
contribution made by the employees at all levels but for whose efforts,
the Company could not have achieved the remarkable financial results
for the financial year ended 31st March 2015.
The Directors also to wish to thank the Company's customers and banks
for their continued support and faith reposed in the Company.
By order of the board
for M. K. Exim (India) Limited
Sd /- Sd/- Sd/-
DayaRam Khanchandani Manish Murlidhar Dialani Prakriti Sethi
Whole Time Director Managing Director Company Secretary
(DIN:00161546) (DIN:05201121)
Place: Jaipur
Date:30.05.2015
Mar 31, 2014
Dear Members
The Directors have great pleasure in presenting the 22nd Annual
Report on the performance of your Company for the financial year ended
on 31st March, 2014 along with Audited Statement of Accounts.
The highlights of the financial results of the Company for the
Financial Year ended on 31st March, 2014 are as under:-
FINANCIAL HIGHLIGHTS
Rs. In Lacs
Financial Year ended on
Particulars
2013-14 2012-13
Sales and other Income 2808.90 1394.45
Profit before interest &
depreciation 44.80 61.43
Interest 14.76 37.23
Profit after interest 30.04 24.20
but before Depreciation
Depreciation 15.74 16.82
Profit/ (Loss) before tax 14.30 7.38
Provision for taxation 6.83 (1.59)
Deferred Tax Liability 3.62 2.10
(Created)/ Reversed
Net Profit/ (Loss) after tax 11.09 7.89
FINANCIAL PERFORMANCE
The turnover during the financial year 2013-14 was Rs. 2808.90 lacs in
comparison of previous year Rs. 1394.45 lacs. The turnover has
increased by approx. 101 percentage. The board is making their all
possible efforts to improve the performance of the Company.
DIVIDEND
Your Board of Directors has not propose any dividend for the year.
DIRECTORS:
The company has received confirmation from Directors u/s 164 of
Companies Act, 2013 in respect of director''s qualification.
The board wants to appoint a new Director Mr. MANISH MURLIDHAR DIALANI
DIN NO. 05201121 as director of the company whose nomination with
deposit and consent to act as director of the company has been received
by the company. Shareholders are requested to approve his appointment
as director of the company.
SALE OF LAND AND PLANT:
The board wants to sale a land situated at Village -Khinwal Teh Raipur
Distt. Pali and Plant of the year 1998. The plant is not in a useable
condition. Shareholders are requested to approve the proposal of
selling these so the company can use the amount in the expansion of the
existing working of the company.
FIXED DEPOSITS
The Company has not received/accepted any deposit with in the Section
58A of the Companies Act, 1956 and the rules made there under.
RESPONSIBILITY STATEMENT
The Directors confirm:
a) that in the preparation of the Annual Accounts, the applicable
Accounting Standard has been followed and that no material departures
have been made from the same;
b) that they have selected such Accounting Policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give true and fair view of the State of Affairs of the
Company at the end of the financial year and of the profit or loss of
the Company for that period;
c) that they have taken proper and sufficient care for the maintenance
of adequate records in accordance with the provisions of the Companies
Act, 1 956 for safeguarding the Assets of the Company and for
preventing and detecting fraud and other irregularities.
d) that they have prepared the Annual Accounts on a Going Concern
Basis.
CORPORATE GOVERNANCE
The Company has implemented all the Provisions of the Corporate
Governance as stipulated by Clause 49 of the Listing Agreement with all
the Stock Exchanges where the Company''s securities are listed. It has
always been a constant endeavour of the Company to adopt Good Corporate
Governance code through independent board, transparent disclosures, and
Shareholders empowerment for creating and sustaining shareholders
value. A separate section on Corporate Governance along with a
Certificate from the Auditors of the Company certifying compliance of
stipulations of Clause 49 of Listing Agreement with the Stock Exchanges
with regard to the Corporate Governance code is annexed with this
report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The report on Management Discussion and Analysis as required under the
Listing Agreement with the Stock Exchanges is annexed and forms part of
the Directors'' Report.
AUDITORS
M/S Vimal Agrawal & Associates, Chartered Accountants, Jaipur, the
Statutory Auditors of the Company retire and are being eligible for
re-appointment. The board recommends for the approval of their
re-appointment.
The replies on the observation made by the auditors are as follows:-
I. AS 28 regarding ''Impairment of Assets'', in respect of impairment
loss of garment Manufacturing unit, impairment loss, remains
unascertained.
The board has decided to dispose of these assets relevant with garment
manufacturing unit after completing the necessary compliances.
II. AS-15: ''provisions for Gratuity'', for employees
benefits (Revised 2005), in respect of provision for gratuity provided
by the company is inadequate and its effect on liabilities and profit
of the company is unascertainable. Further, requisite disclosures are
not made in respect of retirement benefits.
The board is planning to take some policy decision regarding this to
overcome this non- compliance.
PERSONNEL
There have been cordial personnel relations in the Company. There was
no employee drawing salary of Rs.5,00,000/- per month or more and Rs.
60,00,000/- yearly basis or more in the year ended March, 31,2014.
Therefore, the provisions of Section 217 (2A) of the Companies Act,
1956, read with the, "The Companies (Particulars of Employees) Rules,
1975" are not applicable.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
As required under Section 217 (1) (e) of the Companies Act, 1956 read
with the Companies (Disclosures of Particulars in the Report of the
Board of Directors) Rules, 1988, the information relating to
conservation of energy, technology absorption and foreign exchange
earnings and outgo is annexed.
APPRECIATION
The Directors of your Company sincerely appreciates the help and
co-operation rendered by banks, Government and non-governments
departments, employees and others who have contributed for the interest
of the Company.
By order of the board
For M.K. Exim (India) Limited
Dayaram Khanchandani Pushpa Khanchandani
Whole-Time Direcot Whole-Time Direcot
DIN: 00161546 DIN: 00174337
(Prakriti Sethi)
Company Secretary
Place : Jaipur
Date : 01.09.2014
Mar 31, 2010
The Directors have great pleasure in presenting the 18th Annual
Report on the performance of your Company for the financial year ended
on 31st March, 2010 along with Audited Statement of Accounts.
The highlights of the financial results of the Company for the
Financial Year ended on 31st March, 2010 areas under:-
FINANCIAL HIGHLIGHTS
Rs. In Lacs
Particulars Financial Year ended on
2009-10 2008-09
Sales and other Income 319.68 277.80
Profit before Interest &
depreciation 28.13 (5.17)
Interest 19.02 24.20
Profit after Interact but before
depreciation 7.11 29.40
Depreciation 20.92 35.55
Profit/(Loss) before tax (13.81) (64.92)
Provision for taxation 0.00 0.00
Provision for FBT 0.0 1.04
Deferred Tax Liability
(Created)/Reversed (70.03) (9.23)
Net Profit/(Loss) after Tax (56.22) (56.73)
FINANCIAL PERFORMANCE
The turnover during the financial year 2010 was Rs. 3,23,07,466 in
comparison of previous year Rs. 2,50,35,960. The turnover has increased
by approx. 29 percentage.
During the year the board has decided to enter into new areas of
jewellery and hotel business. The company has made some tie- ups for
hotel business, which will be highlighted shortly.
The Company has also made a preferential allotment of 31,00,000 equity
shares at a price of Rs. 27/- each after getting necessary approvals
from its shareholders. Some pending approvals are in progress from the
stock exchanges, where the securities of the company are listed.
FIXED DEPOSITS
The Company has not received/accepted any deposit with in the Section
58A of the Companies Act, 1956 and the rules made there under.
RESPONSIBILITY STATEMENT
The Directors confirm:
a) That in the preparation of the annual accounts, the applicable
accounting standard has been followed and that no material departures
have been made from the same;
b) That they have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give true and fair view of the state of affairs of the
company at the end of the financial year and of the profit or loss of
the company for that period;
c) That they have taken proper and sufficient care for the maintenance
of adequate records in accordance with the provisions of the companies
act, 1956 for safeguarding the assets of the company and for preventing
and detecting fraud and other irregularities.
d) that they have prepared the annual accounts on a going concern
basis.
CORPORATE GOVERNANCE
The Company has implemented all the Provisions of the Corporate
Governance as stipulated by Clause 49 of the Listing Agreement with all
the Stock Exchanges where the Companys securities are listed. It has
always been a constant endeavour of the Company to adopt Good Corporate
Governance code through independent board, transparent disclosures, and
Shareholders empowerment for creating and sustaining shareholders
value. A separate section on Corporate Governance along with a
Certificate from the Auditors of the Company certifying compliance of
stipulations of Clause 49 of Listing Agreement with the Stock Exchanges
with regard to the Corporate Governance code is annexed with this
report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The report on Management Discussion and Analysis as required under the
Listing Agreement with the Stock Exchanges is annexed and forms part of
the Directors Report.
AUDITORS
During the year the previous auditor of the company M/S P.C. MODI &
Co., has given resignation and the company appointed new auditor M/S
Vimal Agrawal & Associates, Chartered Accountants, Jaipur to fill up
the casual vacancy caused by resignation of M/S P.C. Modi &Co.
The board places its high sense of appreciation for the services
rendered by the out-going auditor.
The board request to approve the reappointment of the auditor, viz.,
M/S Vimal Agrawal & Associates. The auditors report is self explanatory
hence does not require any explanation.
COMPLIANCE CERTIFICATE
The Compliance Certificate obtained from M/S S C Sharma & Associates,
Company Secretaries, Jaipur, is attached with this report. The
certificate is self explanatory, hence does not require any
explanation.
PERSONNEL
There have been cordial personnel relations in the Company. There was
no employee drawing salary of Rs.2,00,000 per month or more and
Rs.24,00,000 or more in the year ended March, 31,2010. Therefore, the
provisions of Section 217 (2A) of the Companies Act, 1956, read with
the, "The Companies (Particulars of Employees) Rules, 1975" are not
applicable.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
As required under Section 217 (1) (e) of the Companies Act, 1956 read
with the Companies (Disclosures of Particulars in the Report of the
Board of Directors) Rules, 1988, the information relating to
conservation of energy, technology absorption and foreign exchange
earnings and outgo is annexed.
APPRECIATION
The Directors of your Company sincerely appreciates the help and
co-operation rendered by banks, Government and non- governments
departments, employees and others who have contributed for the interest
of the Company.
By order of the board
Sd/-
(D R Khanchandani)
Chairman
Sd/-
(K L Khanchandani)
Managing Director
Place : Jaipur
Date : 01st September, 2010
Mar 31, 2009
The Directors have great pleasure in presenting the 17" Annual Report
on the performance of your Company for the financial year ended on 31"
March, 2009 along with Audited Statement of Accounts.
The highlights of the financial results of the Company for the
Financial Year ended on 31 "March, 2009 are as under:-
FINANCIAL HIGHLIGHTS
Rs. In Lacs
Particulars Financial Year ended on
2008-09 2007-08
Sales and other Income 277.80 147.95
Profit before interest & dep. (5.17) 27.71
Interest 24.20 71.05
Profit after interest but before
depreciation 29.40 43.34
Depreciation 35.55 49.18
Profit/(Loss) before tax (64.92) (92.52)
Provision for taxation 0.00 0.00
Provision for FBT 1.04 1.35
Deferred Tax Liability
(Created)/Reversed (9.23) 23.49
Net Profit/(Loss) after Tax (56.73) (70.38)
FINANCIAL PERFORMANCE
The turnover during the financial year 2009 was Rs. 2,50,35,960 in
comparison of previous year Rs. 1,77,81,450. The turnover has increased
by approx. 41 percentage. During the year under review the margin has
reduced due to reverse market conditions in garment industry specially
relevant with exports
FIXED DEPOSITS:
The Company has not received/accepted any deposit with in the Section
58A of the Companies Act, 1956 and the rules made there under.
RESPONSIBILITY STATEMENT:
The Directors confirm:
a) that in the preparation of the annual accounts, the applicable
accounting standards have been followed and that no material departures
have been made from the same;
b) that they have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give true and fair view of the state of affairs of the
Company at the end of the financial year and of the profit or loss of
the Company for that period;
c) that they have taken proper and sufficient care for the maintenance
of adequate records in accordance with the provisions of the Companies
Act, 1956, for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
d) that they have prepared the annual accounts on a going concern
basis.
CORPORATE GOVERNANCE:
The Company has implemented all the Provisions of the Corporate
Governance as stipulated by Clause 49 of the Listing Agreement with all
the Stock Exchanges where the Companys securities are listed. It has
always been a constant endeavor of the Company to adopt Good Corporate
Governance code through independent board, transparent disclosures, and
Shareholders empowerment for creating and sustaining shareholders
value. A separate section on Corporate Governance along with a
Certificate from the Auditors of the Company certifying compliance of
stipulations of Clause 49 of Listing Agreement with the Stock Exchanges
with regard to the Corporate Governance code is annexed with this
report.
MANAGMENT DISCUSSION AND ANALYSIS REPORT
The report on Management Discussion and Analysis as required under the
Listing Agreement with the Stock Exchanges is annexed and forms part of
the Directors Report.
AUDITORS
M/S P.C. MODI & Co., Chartered Accountants, Jaipur, the Statutory
Auditors of the Company retire and are being eligible for
re-appointment. The Board recommends for the approval of their
re-appointment.
The replies on the observation made by the auditors are as follows:-"!)
regarding going concern assumption is inappropriate: During this year
from the period April, 2009 to July, 2009 the turnover of the company
was Rs. 157 lacs, and the expected profit on this turnover is Rs. 21
lacs. This fact shows that the company is running its business on going
concern concept. 2) regarding Trade Advances and trade debtors are
doubtful: according to the management of the company the trade advances
are good and recoverable. 3) closing stock is obsolete and damaged:
according to the management the valuation of the closing stock has been
done on the price which is below the market price, hence the statement
is not correct. 4) Provision for bonus: from last two years the company
was incurring losses, hence the company not made any provision for
this. In current year it is expected that the company wili earn
profits. The management is of the view that the company will make the
provisions for bonus during this year. 5) not charging any interest on
trade advances given by the company: the management is making all
efforts to recover complete trade advances. 6) procedure of inventory
verification inadequate: according to the management of the company
verification is accurate according to the size of the company and it is
valued less than the market price. 7) interest free loan U/S 301:
during the year no new loan has been given by the company. 8) Irregular
in depositing PF dues: due to losses in previous year the company has
not deposited dues under the provisions of the P F Act in prescribed
time.
9) VAT dues, Income-tax demand etc.: the income-tax demand is pending
because the case is pending with Commissioner of IT (Appeals), the
delays in depositing in dues of Salex Tax and VAT was due to losses in
the previous year. 10) defaulted in repayment in financial institutions
dues: the delay was only due to losses in the previous year. Even in
this situation the company has cleared loans of RIICO and limits of
SBBJ for reducing the interest burden on the company.
PERSONNEL
There have been cordial personnel relations in the Company. There was
no employee drawing salary of Rs. 2,00,000 per month or more and Rs.
24,00,000 or more in the year ended March, 31, 2009. Therefore, the
provisions of Section 217(2A) of the Companies Act, 1956, read with
the, "The Companies (Particulars of Employees) Rules, 1975" are not
applicable.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
As required under Section 217(1)(e) of the Companies Act, 1956 read
with the Companies (Disclosures of Particulars in the Report of the
Board of Directors) Rules, 1988, the information relating to
conservation of energy, technology absorption and foreign exchange
earnings and outgo is annexed.
APPRECIATION
The Directors of your Company sincerely appreciates the help and
co-operation rendered by banks, Government and non- governments
departments, employees and others who have contributed for the interest
of the Company.
By order of the Board
Sd/-
(D R Khanchandani)
Chairman
Sd/-
(K. L. Khanchandani)
Managing Director
Place: Jaipur
Date: 1st September, 2009