Mar 31, 2014
Dear Members,
The Directors of your Company have pleasure in presenting the 58th
Annual Report of the Company together with the Audited Accounts for the
year ended 31st March, 2014.
FINANCIAL HIGHLIGHTS (Rs.in lacs)
PARTICULARS YEAR ENDED YEAR ENDED
31.03.2014 31.03.2013
(12 Months) (15 Months)
Net Sales and Income 14593.77 15544.43
Gross Profit 963.54 1948.45
Less:
i) Financial Expenses 512.31 744.37
ii) Depreciation 98.20 504.36
Profit before exceptional items 353.03 699.72
Exceptional items 315.81 0.00
Profit before tax 37.22 699.72
Provision for tax 0.00 0.00
Net Profit 37.22 699.72
PERFORMANCE REVIEW
During the year under report Cotton Spinning Unit of the Company
produced 54.58 lacs kgs of Cotton Yarn at an Avg. count of Ne 22.32 as
compared to previous year production of 66.59 lacs kgs. at an Avg.
count of Ne 23.44. The previous year was of 15 months and year under
report is of 12 months. So the production level has slightly improved
as compared to previous year. The Company achieved total income of Rs.
14593.77 lacs as compared to 15544.43 lacs during the previous year.
Gross profit was Rs. 963.54 lacs against gross profit of Rs. 1948.45
lacs during the previous year. Company''s profit before exceptional
items is Rs. 353.03 lacs and net profit after exceptional item is Rs.
37.22 lacs against net profit of Rs. 699.72 lacs during the previous
year. The year under report was an adverse year for Cotton Spinning
Industry. The main reason was the steep hike in cotton prices during
the year under report as compared to previous year. The main cause of
high prices of raw cotton was the export of substantial quantities of
cotton under OGL. Speculators also played their part in keeping the
cotton prices high. There was much volatility in cotton prices. This
had serious adverse effect on Cotton Spinning Industry.
On the other hand, yarn prices remained subdued due to sluggish demand
in the International market. During the year when China who is a major
yarn importer stopped import of Cotton Yarn, the yarn prices further
fell. So there was quite mis-match between raw material cost and price
realisation of finished goods. All this resulted in adverse financial
performance by the company. During the year under report prices of
power and fuel and personnel expenses also increased. All these
factors resulted in higher cost of production and these led to adverse
financial performance by the Company.
EXPORTS
Your Company is producing high quality products conforming to
international standards and the Cotton Spinning Unit has been awarded
ISO 9001-2008 certification. The Company is supplying yarns in various
countries and to some of the most reputed global yarn importers.
Because of its exports performance, your Company has been awarded the
status of a Star Export House by Government of India.
During the year under report, the Company made an export turnover of
Rs.7672.86 lacs as compared to previous year''s export turnover of Rs.
9499.61 lacs. Export Turnover was slightly better as compared to
previous year of 15 months.
CURRENT YEAR''S OUTLOOK
Your Company is manufacturing 100% grey cotton yarns for which the raw
material is Cotton. Due to introduction of high yielding BT Cotton, raw
cotton of different varieties is abundantly available in the country.
Though there was delay in onset of monsoon in the country but
subsequently monsoon has been quite active in the cotton crop growing
regions in the country. Areas under crop cultivation have increased as
compared to previous season. The country is expecting bumper cotton
crop during the ensuing season starting from September, 2014.
Due to expectation of bumper cotton crop not only in India but also
major cotton growing countries like USA, Pakistan, China etc. the
cotton prices have started declining. The Company expects to buy cotton
at reasonable cost during the coming season. Demand of cotton yarn is
also picking up in the International market. Demand for cotton yarn is
also picking up in the the International market. China is also expected
to restart import of cotton yarn. All these factors will help in
increase in the price of yarn in the International market. Rupee-Dollar
exchange rate is stable which is to the advantage of the Company.
Due to these factors the Company expects to show better financial
performance during the current year as compared to that of the year
under report
DIVIDEND
Your Directors regret their inability to recommend any dividend for the
year under report with a view to conserve its resources.
DIRECTORS
Sh. Raj Paul Oswal is retiring by rotation at the ensuing Annual
General Meeting and is eligible for reappointment.
Sh. Pawan Kumar Bahl, Sh. Raghubir Chand Singal and Dr. Yash Paul
Sachdeva are the independent Directors of the Company. It is proposed
to appoint them as independent Directors of the Company for a term of 5
years. They will not retire by rotation.
DIRECTORS RESPONSIBILITY STATEMENT
In accordance with the provisions of the Companies Act your directors
confirm that:-
i) in the preparation of the accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures, if any;
ii) the Directors have selected such accounting policies and applied
them consistently and made
judgments and estimates that were reasonable and prudent so as to give
a true and fair view of the state of affairs of the Company as at 31st
March, 2014 and of the profit 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;
iv) the Directors have prepared the Annual Accounts on a going concern
basis.
CORPORATE GOVERNANCE
Your Company is committed to adopt good Corporate practices that will
enable it to achieve its goal of creating an organization with
increasing employee and customer satisfaction and shareholders value. A
separate Report on Corporate Governance is attached as part of the
Annual Report pursuant to Clause 49 of the Listing Agreement. The
Auditors Certificate is included in the said Corporate Governance
Report.
AUDITORS AND THEIR OBSERVATIONS
M/s Dass Khanna & Co., Chartered Accountants, Ludhiana, Auditors of the
Company retire at the conclusion of the ensuing Annual General Meeting
and are eligible for reappointment.
The Report of the Auditors is self explanatory and also explained in
the respective Notes on Accounts and hence does not call for any
explanation or clarification by the Board.
COST AUDITOR
The Company has appointed, Sh. Rishi Mohan Bansal as Cost Auditor for
the Cotton Spinning Unit of the Company for the year 2014-15, and
Central Government has also approved his appointment. PUBLIC DEPOSITS
During the year under report the Company did not invite or accept any
Public Deposits within the meaning of Section 58-A of the Companies
Act, 1956 and rules made there under.
As on 31st March, 2014, the outstanding deposits amounted to Nil and
the overdue unclaimed deposits amounted to Nil.
LISTING
The securities of the Company are listed at Ludhiana, Delhi, Ahmadabad,
Mumbai and Calcutta Stock Exchanges. The Company has also applied for
delisting of its shares from the stock exchanges at Ludhiana, Delhi,
Calcutta and Ahmadabad and our applications are pending. PARTICULARS
OF EMPLOYEES
The information as required under the Companies Act read with the
Companies (Particulars of Employees) Rules, 1975 as amended is Nil.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS &OUTGO
The information pursuant to the Companies Act read with Rules made
thereunder is given in the Annexure I to this Report.
INDUSTRIAL RELATIONS
The industrial relations remained peaceful and cordial throughout the
year in the Company. ACKNOWLEDGEMENTS
Your Directors take this opportunity to offer their sincere thanks to
various departments of the
Central and State Governments, Banks, Financial Institutions, Mutual
Funds and Investors for their unstinted support and assistance. Your
Directors also express their deep appreciation for the devoted and
sincere services rendered by workers, staff and executives at all
levels during the year and we are confident that your Company will
continue to receive such co-operation from them in future also
FOR AND ON BEHALF OF THE BOARD
PLACE : LUDHIANA RAJ PAUL OSWAL
DATED : 28.08.2014 CHAIRMAN
Mar 31, 2013
Dear Members,
The Directors of your Company have pleasure in presenting the 57th
Annual Report of the Company together with the Audited Accounts for the
year ended 31st March, 2013.
FINANCIAL HIGHLIGHTS (Rs.in lacs)
PARTICULARS YEAR ENDED YEAR ENDED
31.03.2013 31.12.2011
(15 Months) (15 Months)
Net Sales and Income 15344.08 14764.53
Gross Profit 1748.10 (-)636.54
Less:
i) Financial Expenses 744.37 1062.79
ii) Depreciation 504.36 514.61
Profit before exceptional items 499.37 (-)2213.94
Exceptional items 200.35 2330.47
Profit before tax 699.72 116.54
Provision for tax 0.00 0.00
Net Profit 99.72 116.54
PERFORMANCE REVIEW
During the year under report, Cotton Spinning Unit of the Company
produced 66.59 lac kgs. of cotton yarn as compared, to previous year''s
production of 60.55 lac kgs. of cotton yarn, thereby showing an
increase of 6.04 lac''kgs. The Company''s operating income was Rs.
15344.08 lacs as against previous year''s income of Rs. 14764.53. which
shows an increase of Rs. 579.55 lacs (3.92%). Gross profit of the
Company is Rs. 1748.10 lacs as against gross profit/(loss) of Rs.
(636.54 lacs) during the previous year. Company''s net profit is Rs.
699.72 lacs as against previous year''s net profit of Rs. 116.54 lacs.
During the year under report the cotton spinning industry performed
better than the previous year. During the previous year there was much
volatility both in cotton prices as well as yarn prices. Due to this,
the industry had suffered losses. But during the year under report,
both the prices of cotton and yarn were stable. In fact demand for
cotton yarn in global markets remained high and accordingly, the cotton
yarn prices also showed some upward trend.
Further, as the rupee remained in depreciating mode against USD during
the year under report there was better price realisation.
However power & fuel and personnel expenses increased to some extent.
In spite of the increase in these expenses the Company showed better
performance during the year under report as compared to the previous
year.
EXPORTS
Your Company is producing high quality products conforming to
international standards and the Cotton Spinning Unit has been awarded
ISO 9001-2008 certification. The Company is supplying yarns in various
countries and to some of the most reputed global yarn importers.
Because of its exports performance, your Company has been awarded the
status of a Star Export House by Government of India.
During the year under report, the Company made an export turnover of
Rs.9499.61 lacs as compared to previous year''s export turnover of Rs.
9399.90 lacs. So, there was a slight improvement in Company''s export
turnover.
CURRENT YEAR''S OUTLOOK
Your Company is manufacturing 100% grey cotton yarns for which the raw
material is Cotton. Due to introduction of high yielding BT Cotton, raw
cotton of different varieties is abundantly available in the country.
So far the monsoon has been very good in the cotton growing regions in
the country and areas under cotton cultivation have increased as
compared to the previous season. The country is expecting bumper cotton
crop during the coming season starting from September, 2013.
Therefore, the Company will be able to buy cotton at reasonable cost.
Further, there is ample demand for cotton yarn in global markets and
the prices are also good. As the rupee is depreciating against USD in
the last six months, the Company will be able to achieve better sale
realisation during the coming months.
Due to these factors the Company expects to show better financial
performance during the current year as compared to that of the year
under report.
DIVIDEND
Your Directors regret their inability to recommend any dividend for the
year under report with a view to conserve its resources.
FINANCIAL YEAR
The financial year of the Company under Report was 15 months i.e. from
01.01.2012 to 31.03.2013.
DIRECTORS
Sh. Raj Paul Oswal and Sh. Sambhav Oswal retires by rotation at the
ensuing Annual General Meeting and are eligible for reappointment.
DIRECTORS RESPONSIBILITY STATEMENT
In accordance with the provisions of Section 217 (2AA) of the Companies
Act 1956, your directors confirm that:-
i) in the preparation of the accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures, if any;
ii) the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that were reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company as at 31ST March, 2013 and of the profit 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;
iv) the Directors have prepared the Annual Accounts on a going concern
basis.
CORPORATE GOVERNANCE
Your Company is committed to adopt good Corporate practices that will
enable it to achieve its goal of creating an organization with
increasing employee and customer satisfaction and shareholders value. A
separate Report on Corporate Governance is attached as part of the
Annual Report pursuant to Clause 49 of the Listing Agreement. The
Auditors Certificate is included in the said Corporate Governance
Report.
AUDITORS AND THEIR OBSERVATIONS
M/s Dass Khanna & Co., Chartered Accountants, Ludhiana, Auditors of the
Company retire at the conclusion of the ensuing Annual General Meeting
and are eligible for reappointment.
The Report of the Auditors is self explanatory and also explained in
the respective Notes on Accounts and hence does not call for any
explanation or clarification by the Board. However, clarifications to
some of the points raised by the Auditors are as under- Regarding
depreciation provided in the Cotton Spinning Unit on continuous process
basis, the matter is already explained in Note No. F.
COST AUDITOR
The Company has appointed, Sh. Rishi Mohan Bansal as Cost Auditor for
the Cotton Spinning Unit of the Company for the year 2013-14, and
Central Government has also approved his appointment.
PUBLIC DEPOSITS
During the year under report the Company did not invite or accept any
Public Deposits within the meaning of Section 58-A of the Companies
Act, 1956 and rules made there under.
As on 31st March, 2013, the outstanding deposits amounted to Nil and
the overdue unclaimed deposits amounted to Nil.
LISTING
The securities of the Company are listed at Ludhiana, Delhi, Ahmadabad,
Mumbai and Calcutta Stock Exchanges. The Company has also applied for
delisting of its shares from the stock exchanges at Ludhiana, Delhi,
Calcutta and Ahmadabad and our applications are pending.
PARTICULARS OF EMPLOYEES
The information as required under section 217 (2A) of the Companies
Act, 1956 read with the Companies (Particulars of Employees) Rules,
1975 as amended is Nil.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS & OUTGO
The information pursuant to section 217 (1)(e) of the Companies Act,
1956 read with Rule 2 of the Companies (Disclosure of Particulars in
the Report of Board of Directors) Rules, 1988 is given in the Annexure
I to this Report.
INDUSTRIAL RELATIONS
The industrial relations remained peaceful and cordial throughout the
year in the Company.
ACKNOWLEDGEMENTS
Your Directors take this opportunity to offer their sincere thanks to
various departments of the Central and State Governments, Banks,
Financial Institutions. Mutual Funds and Investors for their unstinted
support and assistance. Your Directors also express their deep
appreciation for the devoted and sincere services rendered by workers,
staff and executives at all levels during the year and we are confident
that your Company will continue to receive such co-operation from them
in future also.
FOR AND ON BEHALF OF THE BOARD
PLACE: LUDHIANA RAJ PAUL OSWAL
DATED: 12.08.2013 CHAIRMAN
Dec 31, 2011
The Directors of your Company have pleasure in presenting the 56th
Annual Report of the Company together with the Audited Accounts for the
year ended 31 st December, 2011.
FINANCIAL HIGHLIGHTS
(Rs. in lacs)
PARTICULARS YEAR ENDED 31.12.2011 YEAR ENDED 30.09.2010
(15 Months) (15 Months)
Net Sales and Income 17095.01 11850.64
Gross Profit 1693.96 1569.15
Less :
i) Financial Expenses 1062.80 952.01
ii) Depreciation 514.62 518.50
iii) Provisions for
Fringe Benefit Tax 0 0
Net Profit 116.54 98.64
Adjustments Relating
to Previous Years 0 (-)0.22
Balance brought
forward from
earlier years (-)1498.41 (-) 1761.82
Tfd. from Debentures
Redemption Reserve 0 165 00
Balance carried over
to Balance Sheet (-)1381.88 (-)1498.40
PERFORMANCE REVIEW
During the year under report, Cotton Spinning Unit of the company
produced 60.55 lac kgs. of cotton yarn as compared to previous year's
production of 69 66 lac kgs. of cotton yarn. The decline in production
is mainly on account of the fact that the company had to slow down its
production for 2-3 months due to accumulation of stock consequent to
Govt 's restrictions on export of cotton yarn The Company achieved net
income of Rs.17095.01 lacs as compared to Rs. 11850.64 lacs in the
previous year. Gross profit was Rs. 1693.96 lacs as compared to Rs.
1569.15 lacs during the previous year. The Company earned net profit of
Rs.116.54 lacs as compared to net profit of Rs. 98.64 lacs during the
previous year.
The year under report was very challenging for the cotton spinning
industry. The Central Govt, put a cap on export of cotton yarn and also
imposed restrictions on the same. Consequent to this there was almost
no export of cotton yarn for 2-3 months. This resulted in piling up of
inventory both of cotton yarn and raw cotton. The overseas buyers had
no choice but to shift to other countries to source their requirement
of cotton yarn Ultimately when the export restriction was lifted the
prices of both cotton yarn and raw cotton dropped drastically in the
overseas market which resulted in diminishing of value of raw cotton
and yarn. This resulted in losses to the cotton spinning industry.
Further various exports incentives like duty drawback DEPB Scheme,
Interest Subvention etc. were withdrawn. Later on Duty Drawback was
restarted but its rate was reduced from 4% to 2.9%. Your company being
export oriented was hit by the withdrawal of these incentives. Increase
in interest rates also affected the profits of the Company. However,
the adverse effect of all these factors was, to some extent, offset by
decrease in prices of cotton and depreciation of Rupee against USD.
EXPORTS
Your company is producing high quality products conforming to
international standards and the Cotton Spinning Unit has been awarded
ISO 9001-2000 certification. The Company is supplying yarns in various
countries and to some of the most reputed global yarn importers.
Because of its exports performance, your company has been awarded the
status of a Star Export House by Government of India.
During the year under report, the Company made an export turnover of
Rs.9500.11 lacs as compared to previous year's export turnover of Rs
8653 08 lacs. So, there was a significant improvement in company's
export turnover as compared to that of the previous year
CURRENT YEAR'S OUTLOOK
Your company is manufacturing 100% grey cotton yarns for which raw
material is cotton. Due to introduction of high yielding BT Cotton, raw
cotton of different varieties is abundantly available in the country
During the current cotton season, there is abundant supply of cotton
and prices are lower as compared to previous year But due to slowdown
in Eurozone, demand for cotton yarn is sluggish and prices are also
declining But due to the depreciation of Rupee against USD, the Company
is able to achieve better sales realisation in rupees terms in spite of
declining yarn prices. The Company expects this situation to continue
in the near future also.
There is expectation of good cotton crop world wide during the next
cotton season, so the prices of cotton are also expected to remain
stable at the present level If this trend continues, the Company
expects to show better financial performance during the current year as
compared to the year under Report.
PROPOSED EXPANSION PROJECT
At present the Cotton Spinning Unit of the Company has 26208 spindles
The Company proposes to expand Capacity of the Unit by adding another
12960 spindles Your Board of Directors is working out the details of
the project We shall keep the Shareholders informed of further
developments in this regard
DIVIDEND
Your Directors regret their inability to recommend any dividend for the
year under report with a view to conserve its resources
FINANCIAL YEAR
The financial year of the Company under Report was extended from 12
months to 15 months i.e. from 01 10.2010 to 31 12 2011 -
CHANGE OF SITUATION OF THE REGISTERED OFFICE OF THE COMPANY
The Company has changed the situation of the Registered Office of the
Company from G.T. Road, Jugiana, Ludhiana to No 11 & 12, 1st Floor;
Block-F, Main Market Near Orient Cinema, B R.S. Nagar, Ludhiana-
141012, wef 18.04.2012.
DIRECTORS
The tenure of Sh A.K. Oswal, Managing Director ended on 30 04 2012 The
Board of Directors has reappointed Sh A.K. Oswal as Managing Director
for another five years w e f 1st May, 2012 subject to the approval of
shareholders Sh Raghubir Chand Singal retires by rotation at the
ensuing Annual General Meeting and is eligible for reappointment
DIRECTORS RESPONSIBILITY STATEMENT
In accordance with the provisions of Section 217 (2AA) of the Companies
Act 1956, your directors confirm that
i) in the preparation of the accounts, the applicable accounting
standards have been followed alongwith proper explanation relating to
material departures, if any;
ii) the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that were reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company as at 31st December, 2011 and of the profit 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,
iv) the Directors have prepared the Annual Accounts on a going concern
basis.
CORPORATE GOVERNANCE
Your Company is committed to adopt good Corporate practices that will
enable it to achieve its goal of creating an organization with
increasing employee and customer satisfaction and shareholders value. A
separate Report on Corporate Governance is attached as part of the
Annual Report pursuant to Clause 49 of the Listing Agreement. The
Auditors Certificate is included in the said Corporate Governance
Report.
AUDITORS AND THEIR OBSERVATIONS
M/s Dass Khanna & Co., Chartered Accountants, Ludhiana. Auditors of the
Company retire at the conclusion of the ensuing Annual General Meeting
and are eligible for reappointment.
The Report of the Auditors is self explanatory and also explained in
the respective Notes on Accounts and hence does not call for any
explanation or clarification by the Board However, clarifications to
some of the points raised by the Auditors are as under -
Regarding depreciation provided in the Cotton Spinning Unit on
continuous process basis, the matter is already explained in Note No 8
Regarding non provision in respect of debtors not considered good, the
same has not been provided as the Company is making efforts to recover
the amount of debt from them
COST AUDITOR
The Company has appointed, subject to the approval of the Central Govt.
Sh Rishi Mohan Bansal as Cost Auditor for the Cotton Spinning Unit of
the Company for the year 2012-2013
PUBLIC DEPOSITS
As on 31th December, 2011, the outstanding deposits amounted to Nil and
the overdue unclaimed deposits amounted to Nil.
LISTING
The securities of the Company are listed at the Ludhiana, Delhi,
Ahmadabad. Mumbai and Calcutta Stock Exchanges The Company has also
applied for delisting of its shares from the stock exchanges at
Ludhiana Delhi Calcutta and Ahmadabad and our applications are pending
PARTICULARS OF EMPLOYEES
The information as required under section 217 (2A) of the Companies
Act, 1956 read with the Companies (Particulars of Employees) Rules,
1975 as amended is Nil
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS & OUTGO
The information pursuant to section 217 (1 )(e) of the Companies Act,
1956 read with Rule 2 of the Companies (Disclosure of Particulars in
the Report of Board of Directors) Rules, 1988 is given in the Annexure
I to this Report.
INDUSTRIAL RELATIONS
The industrial relations remained peaceful and cordial throughout the
year in the Company
ACKNOWLEDGEMENTS
Your Directors take this opportunity to offer their sincere thanks to
various departments of the Central and State Governments, Banks.
Financial Institutions. Mutual Funds and Investors for their unstinted
support and assistance Your Directors also express their deep
appreciation for the devoted and sincere services rendered by workers,
staff and executives at all levels during the year and we are confident
that your Company will continue to receive such co-operation from them
in future also
FOR AND ON BEHALF OF THE BOARD
PLACE ; LUDHIANA RAJ PAUL OSWAL
DATED : 24.05.2012 (CHAIRMAN)
Sep 30, 2010
The Directors of your Company have pleasure in presenting the 55th
Annual Report of the Company together with the Audited Accounts for the
year ended 30th September, 2010.
FINANCIAL HIGHLIGHTS (Rs.in lacs)
PARTICULARS YEAR ENDED YEAR ENDED
30.09.2010 30.06.2009
(15 Months) (12 Months)
Net Sales & Other Income 11850.64 8211.76
Gross Profit 1569.15 1315.82
Less:
(i) Financial Expenses 952.01 747.66
(ii) Depreciation 518.50 407.47
iii) Provisions for Fringe Benefit Tax 0 3.70
Net Profit 98.64 156.99
Adjustments Relating to Previous Years (-) 0.22 (-) 0.09
Balance brought forward from earlier years (-) 1761.82 (-) 1918.71
Tfd. from Debentures Redemption Reserve 165.00 0
Balance carried over to Balance Sheet (-) 1498.40 (-) 1761.82
Dividend
Your Directors regret their inability to recommend any dividend for the
year under report with a view to conserve its resources.
FINANCIAL YEAR
The financial year of the Company under Report was extended from 12
months to 15 months i.e. from 01.07.2009 to 30.09.2010.
DIRECTORS
During the year under report, Dr. Yash Paul Sachdeva was appointed as
Additional Director by the Board on 25.02.2010 and he holds office till
the ensuing Annual General Meeting. The Company has received a notice
from a member proposing his appointment as a Director liable to retire
by rotation in the ensuing Annual General Meeting. Sh. Pawan Kumar Bahl
retires by rotation at the ensuing Annual General Meeting and is
eligible for reappointment.
DIRECTORS RESPONSIBILITY STATEMENT
In accordance with the provisions of Section 217 (2AA) of the Companies
Act 1956, your directors confirm that:-
i) in the preparation of the accounts, the applicable accounting
standards have been followed alongwith proper explanation relating to
material departures, if any;
ii) the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that were reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company as at 30th September, 2010 and of the profit 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;
iv) the Directors have prepared the Annual Accounts on a going concern
basis.
CORPORATE GOVERNANCE
Your Company is committed to adopt good Corporate practices that will
enable it to achieve its goal of creating an organization with
increasing employee and customer satisfaction and shareholders value. A
separate Report on Corporate Governance is attached as part of the
Annual Report pursuant to Clause 49 of the Listing Agreement. The
Auditors Certificate is included in the said Corporate Governance
Report.
AUDITORS AND THEIR OBSERVATIONS
M/s Dass Khanna & Co., Chartered Accountants, Ludhiana, Auditors of the
Company retire at the conclusion of the ensuing Annual General Meeting
and are eligible for reappointment. The Report of the Auditors is self
explanatory and also explained in the respective Notes on Accounts and
hence does not call for any explanation or clarification by the Board.
However. clarifications to some of the points raised by the Auditors
are as under-Regarding depreciation provided in the Cotton Spinning
Unit on continuous process basis, the matter is already explained in
Note No. 10. Regarding non provision in respect of debtors not
considered good, the same has not been provided as the Company is
making efforts to recover the amount of debt from them.
COST AUDITORS
The Company has appointed, subject to the approval of the Central
Govt., Sh. Rishi Mohan Bansal as Cost Auditor for the Cotton Spinning
Unit of the Company for the year 2010-2011.
PUBLIC DEPOSITS
As on 30th September, 2010, the outstanding deposits amounted to Nil
and the overdue unclaimed deposits amounted to Nil.
LISTING
The securities of the Company are listed at the Ludhiana, Delhi,
Ahmadabad, Mumbai and Calcutta Stock Exchanges. The Company has also
applied for delisting of its shares from the stock exchanges at
Ludhiana, Delhi, Calcutta and Ahmadabad and our applications are
pending.
PARTICULARS OF EMPLOYEES
The information as required under section 217 (2A) of the Companies
Act, 1956 read with the Companies (Particulars of Employees) Rules,
1975 as amended is Nil.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS & OUTGO
The information pursuant to section 217 (1)(e) of the Companies Act,
1956 read with Rule 2 of the Companies (Disclosure of Particulars in
the Report of Board of Directors) Rules, 1988 is given in the Annexure
I to this Report.
INDUSTRIAL RELATIONS
The industrial relations remained peaceful and cordial throughout the
year in the Company.
ACKNOWLEDGEMENTS
Your Directors take this opportunity to offer their sincere thanks to
various departments of the Central and State Governments, Banks,
Financial Institutions, Mutual Funds and Investors for their unstilted
support and assistance. Your Directors also express their deep
appreciation for the devoted and sincere services rendered by workers,
staff and executives at all levels during the year and we are confident
that your Company will continue to receive such co-operation from them
in future also.
FOR AND ON BEHALF OF THE BOARD
PLACE: LUDHIANA R.P. OSWAL
DATED: 24.02.2011 CHAIRMAN
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article