Mar 31, 2016
To
The Members
The Directors have pleasure in presenting their 37th Annual Report on the Business and operations of a Company and the accounts for the Financial Year ended 31st March, 2016.
1. FINANCIAL RESULTS
The Company''s financial performance for the year under review along with previous year figures is given hereunder:
(Fig in Rs. Lacs) (Fig in Rs.Lacs)
Year ended March 31st 2016 |
Year ended March 31st 2015 |
|
Sales of products and services |
4928.88 |
6958.00 |
Other Income |
14.78 |
31.89 |
Total Income |
4943.67 |
6989.89 |
Total Expenditure other than Interest and Depreciation |
4841.19 |
6369.17 |
Profit before Interest, Depreciation and Tax |
102.47 |
620.72 |
Depreciation and Amortization Expenses |
175.07 |
181.92 |
Profit before Interest and Tax |
(72.6) |
438.80 |
Finance Cost (net) |
180.64 |
184.51 |
Profit before Tax |
(253.24) |
254.29 |
Provision for Current Tax |
0 |
50.86 |
Tax expense |
(0.46) |
0 |
Provision for Deferred Tax |
18.16 |
0 |
Net Profit |
(235.53) |
203.43 |
Adjustments in respect of prior years |
7.79 |
418.86 |
Surplus brought forward |
376.48 |
686.81 |
Profit after Tax available for appropriation |
133.16 |
471.38 |
Your Directors recommend appropriation as under: |
||
Proposed Dividend on Equity Shares |
0 |
58.54 |
Dividend Tax on Proposed Dividend |
0 |
11.69 |
Transfer to General Reserve |
0 |
25.00 |
Income Tax /TDS/ wealth Tax Provision |
0 |
(0.33) |
Surplus Carried Forward |
133.16 |
376.48 |
Total Appropriation |
133.16 |
471.38 |
2. RESULTS OF OPERATIONS AND THE STATE OF COMPANY''S AFFAIRS
Due to overall slump in our Industry, sale as well as revenue of the Company is decreased.
The highlights of the Company''s performance are as under:
- Revenue from operations decreased this year by 29.23% to Rs. 49,29,34,626
- Sales decreased by 29.16% to Rs. 49,28,88,950
Further our Company putting the efforts to cover all the losses of the company and increase the sale as well as revenues of the Company this year.
3. PROPOSED TRANSFER TO GENERAL RESERVES
This year, as per section 134(3) (j) of Companies Act, 2013 no amount has transferred to the General Reserve.
4. DIVIDEND
In order to conserve the resources of the company, the Directors have decided not to declare any dividend for the financial year 2015-16.
5. MATERIAL CHANGES AND COMMITMENT IF ANY AFFECTING THE FINANCIAL POSITION OF THE COMPANY OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR TO WHICH THIS FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT
The Company has planned to achieve the maximum capacity utilization to bring down the overhead cost. For this, the company has already started the process to launch its own Brand "LOTUS BAWA" and receiving good response in the market. The Company is providing training to workers and staff to improve the Quality according to the market demand & increase efficiency of work. This will further reduce the operating cost of the product.
Company has resumed the remaining Construction Work of the Mall Project at P.O. Ramdaspura, Jalandhar from February, 2015. The Company along with M/s. EMAAR MGF Land Limited has inked an Agreement with M/s. Shalimar Corp Limited to carry on the further development work of the Project. The construction of Mall at PO Ramdaspura, Nakodar Road, Jalandhar is going on and expected to be completed by 31st March, 2018.
6. DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY''S OPERATIONS IN FUTURE
There is none of the above mentioned order(s) which impacts the going concern status and company''s operations in future.
7. DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS
There is an adequate system of internal controls for the Company. The system is designed to adequately ensure the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information.
The Company also carries out regular internal audits to test the adequacy and effectiveness of its internal control processes and also to suggest improvement and upgrades to the Management. The Company has disclosure controls and procedures in place that are designed to provide reasonable assurance that material information relating to Intellect is disclosed on a timely basis.
8. STATEMENT INDICATING DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY FOR THE COMPANY
The Company has adopted measures concerning the development and implementation of a Risk Management Policy after identifying the following elements of risks which in the opinion of the Board may threaten the very existence of the Company itself are as follows:-
a. High competition from East European countries and other Asian countries
b. International price fluctuation
d. Lack of warehousing support from the government
9. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
The information pertaining to conservation of energy, technology absorption, Foreign exchange Earnings and outgo as required under Section 134 (3)(m) of the Companies Act, 2013 read with Rule 8(3) of the Companies (Accounts) Rules, 2014 is furnished in Annexure "A" and is attached to this report.
10. CORPORATE SOCIAL RESPONSIBILITY
The Company has not developed and implemented any Corporate Social Responsibility initiatives as the said provisions are not applicable.
11. EXTRACT OF ANNUAL RETURN
The extracts of Annual Return pursuant to the provisions of Section 92 read with Rule 12 of the Companies (Management and administration) Rules, 2014 is furnished in Annexure "B" as Form MGT-9 and is attached to this Report.
12. PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES
The particulars of Contracts or Arrangements made with related parties made pursuant to Section 188 is furnished in Annexure "C" as Form AOC-2 and is attached to this report.
13. DIRECTORS RESPONSIBILITY STATEMENT
In accordance with the provisions of Section 134(5) of the Companies Act, 2013 the Board hereby submits its responsibility Statement that:-
(a) In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
(b) The directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the company for that period;
(c) The directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;
(d) The directors had prepared the annual accounts on a going concern basis; and
(e) The directors had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.
(f) 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.
14. SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES
The Company does not have any Subsidiary, Joint venture or Associate Company.
15. DEPOSITS
The Company has neither accepted nor renewed any deposits during the year under review, no amount of principal or interest was outstanding on the date of balance sheet.
16. BOARD MEETINGS, BOARD OF DIRECTORS, KEY MANAGERIAL PERSONNEL & COMMITTEES OF DIRECTORS
a) Board Meetings
The Board of Directors of the Company met nine (9) times during the financial year 2015-16. The details of various Board Meetings are provided in the Corporate Governance Report.
b) Changes In Directors and Key Managerial Personnel
- Mr. Amit Kumar has resigned from the post of the Company Secretary & KMP of the Company w.e.f 15.06.2015
- Ms. Megha Gandhi has been appointed as Company Secretary cum Compliance Officer and KMP of the Company w.e.f. 01.08.2015
- Col. Gurcharan Singh has resigned from the post of Director, due to personal reasons w.e.f 13.11.2015.
- Mr. Surat Singh Bajwa, Director of the Company is ceased to be director of the Company on account of his sudden death on 14.04.2016
- Ms. Lissy Jacob has been appointed as Additional Director of the Company w.e.f. 05.05.2016 who holds office up to the date of this Annual General Meeting.
- Ms. Manjit Bawa has resigned from the post of Director-cum-Chairman of the Company, due to her personal reasons w.e.f 05.05.2016.
- Mr. Atamjit Singh Bawa who is rendering the services as Managing Director of the Company, has been appointed as Chairman of the Board w.e.f 09.07.2016
c) Re-Appointment
In accordance with the provisions of the Act-
Mr. Lajpat Sangwan, Director is liable to retire by rotation at this Annual General Meeting and being eligible have offers himself for re-appointment.
d) Independent Directors
The Company has received declarations from all the Independent Directors of the Company under section 149(7) of the Act, that they meet the criteria of independence as laid down under 149(6) of the Act.
e) Details of Ratio of Remuneration to Directors
The information relating to remuneration of directors as required under Section 197(12) of the Act, is given in Annexure "D"
f) Board Committees
The Board has constituted 4 committees which are as follows:-
1. Audit Committee
2. Nomination and Remuneration Committee
3. Stakeholders'' Relationship Committee
4. Risk Management Committee
g) Board Evaluation
As required under the provisions of Section 134(3) (p) the Board has carried out an annual performance evaluation of its own performance, and the manner in which such performance evaluation was carried out is as under:
The performance evaluation framework is in place and has been circulated to all the directors to seek their response on the evaluation of the entire Board and independent directors. The Nomination and Remuneration Committee shall carry out evaluation of Director''s performance.
The criteria of evaluation is exercise of responsibilities in a bona fide manner in the interest of the Company, striving to attend meetings of the Board of Directors/ Committees of which he is a member/ general meetings, participation constructively and actively in the meetings of the Board /committees of the Board, etc.
i). Vigil Mechanism
The Company promotes ethical behavior in all its business activities and has put in place a mechanism for reporting illegal or unethical behavior.
The Company has a Vigil mechanism and Whistle blower policy under which the employees are free to report violations of applicable laws and regulations and the Code of Conduct. The reportable matters may be disclosed to the Ethics and Compliance Task Force which operates under the supervision of the Audit committee. Employees may also report to the Chairman of the Audit Committee.
During the year under review, no employee was denied access to the Audit Committee.
j) Related Party Transactions
All related party transactions that were entered into during the financial year were on arm''s length basis and were in the ordinary course of business. There were no other material significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large.
17. PARTICULARS OF LOANS. GUARANTEES OR INVESTMENTS
As per Section 186 of the Companies Act, 2013, no loans, guarantees and investments made by the company during the financial year 2015-16.
18. STATUTORY AUDITORS
M/s Y.K. Sud & Co., Jalandhar, Chartered Accountants who are the statutory auditors of the Company hold office as Statutory Auditors until the conclusion of the 38th Annual General Meeting of the Company to be held in the calendar year 2017.
Their appointment is subject to ratification by the members at the 37th Annual General Meeting. The Company has received a certificate from the above Auditors to the effect that if they are reappointed, it would be in accordance with the provisions of Section 141 of the Companies Act, 2013.
19. CORPORATE GOVERNANCE
Your Company has been complying with the provisions of Corporate Governance as stipulated in Clause 49 of the old Listing Agreement & SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015. A separate report on Corporate Governance along with Auditors'' certificate on compliance of the Corporate Governance norms as stipulated in SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015 and Management Discussion & Analysis forming part of this report are provided elsewhere in this Annual Report.
The Register of Members and Share Transfer books of the company will be closed with effect from 23rd September, 2016 to 29th September, 2016 (both days inclusive).
20. Disclosure as required under Section 22 of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
The Company has in place an Anti Sexual Harassment Policy in line with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The Internal Complaints Committee ("ICC") has been set up to redress the complaints received regarding sexual harassment. All employees are covered under this policy.
The following is the summary of the complaints received and disposed off during the financial year 2015-16:
(a) No. of complaints received: NIL
(b) No. of complaints disposed: NIL
21. LISTING FEES
The Company confirms that it has paid the annual listing fees for the year 2016-17 to Bombay Stock Exchange Limited.
22. ACKNOWLEDGEMENTS
Your Directors place on record their sincere thanks to bankers, business associates, consultants, and various Government Authorities for their continued support extended to your Companies activities during the year under review. Your Directors also acknowledges gratefully the shareholders for their support and confidence reposed on your Company.
By Order of the Board of Directors
Sarup Industries Ltd
Atamjit Singh Bawa Simarjit Singh Singh
Managing Director Whole-Time Director
Place: Jalandhar
Date: 25.08.2016
Mar 31, 2015
Dear Members,
The Directors have pleasure in presenting their 36th Annual Report on
the Business and Operations and the accounts for the Financial Year
ended 31st March, 2015 of the Company.
1. FINANCIAL RESULTS
The Company's financial performance for the year under review along
with previous year figures is given hereunder:
(Fig in (Fig in
Rs. Lacs) Rs. Lacs)
Year ended Year ended
March 31st March 31st
2015 2014
Sales of products and services 6958.00 5857.07
Other Income 31.89 102.13
Total Income 6989.89 5959.20
Total Expenditure other than Interest
and Depreciation 6369.17 5495.49
Profit before Interest, Depreciation and Tax 620.72 463.71
Depreciation and Amortization Expenses 181.92 120.77
Profit before Interest and Tax 438.80 342.94
Finance Cost (net) 184.51 169.83
Profit before Tax 254.29 173.11
Provision for Current Tax 50.86 34.64
Provision for Deferred Tax 0 0
Net Profit 203.43 138.47
Adjustments in respect of prior years 418.86 13.85
Surplus brought forward 686.81 673.22
Profit after Tax available for appropriation 471.38 797.84
Your Directors recommend appropriation as under:
Proposed Dividend on Equity Shares 58.54 58.54
Dividend Tax on Proposed Dividend 11.69 9.50
Transfer to General Reserve : 25.00 25.00
Income Tax TDS! wealth Tax Provision -0.33 17.99
Surplus Carried Forward 376.48 686.81
Total Appropriation 471.38 797.84
2. RESULTS OF OPERATIONS AND THE STATE OF COMPANY'S AFFAIRS
The highlights of the Company's performance are as under:
* Revenue from operations increased by 17.05% to Rs. 69,64,73,967
* Profit before tax increased by 46.90% to Rs. 2,54,29,521
* Net profit increased by 46.91 % to Rs. 2,03,43,521
* Sales increased by 18.80% to Rs. 69,58,00,526
3. PROPOSED TRANSFER TO GENERAL RESERVES
As per section 134(3) (j) of Companies Act, 2013, the amount of Rs. 25
lacs has transferred to the General Reserve.
4. DIVIDEND
The Directors recommended dividend of Rs. .80/- i.e.18% per share on
Equity shares for the year ended 31st March 2015, which will attract
dividend tax of Rs. 11.69 lacs. The total payout will be Rs. 58.54
lacs.
5. MATERIAL CHANGES AND COMMITMENTS IF ANY AFFECTING THE FINANCIAL
POSITION OF THE COMPANY OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR
TO WHICH THIS FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT
Company has resumed the remaining Construction Work of the Mall Project
at P.O. Ramdaspura, Jalandhar from February, 2015. The Company
alongwith M/s. EMAAR MGF Land Limited has inked an Agreement with M/s.
Shalimar Corp Limited to carry on the further development work of the
Project. The Construction activities for the Completion of the said
Project have now been put into operation and necessary steps have been
taken to complete the said project at the earliest.
6. DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS
OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY'S
OPERATIONS IN FUTURE
There is none of the above mentioned order(s) which impacts the going
concern status and company's operations in future.
7. STATEMENT INDICATING DEVELOPMENT AND IMPLEMENTATION OF RISK
MANAGEMENT POLICY FOR THE COMPANY
The Company has adopted measures concerning the development and
implementation of a Risk Management Policy after identifying the
following elements of risks which in the opinion of the Board may
threaten the very existence of the Company itself are as follows:-
a. High competition from East European countries and other Asian
countries.
b. Lack of strong presence in the global fashion market.
c. International price fluctuation.
d. Lack of warehousing support from the government.
8. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information pertaining to conservation of energy, technology
absorption, Foreign exchange Earnings and outgo as required under
Section 134 (3)(m) of the Companies Act, 2013 read with Rule 8(3) of
the Companies (Accounts) Rules, 2014 is furnished in Annexure "A" and
is attached to this report.
9. CORPORATE SOCIAL RESPONSIBILITY
The Company has not developed and implemented any Corporate Social
Responsibility initiatives as the said provisions are not applicable.
10. EXTRACT OF ANNUAL RETURN
The extracts of Annual Return pursuant to the provisions of Section 92
read with Rule 12 of the Companies (Management and Administration)
Rules, 2014 is furnished in Annexure "B" as Form MGT-9 and is attached
to this Report.
11. PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES
The particulars of Contracts or Arrangements made with related parties
pursuant to Section 188 of Companies act, 2013 is furnished in Annexure
"C" as Form AOC-2 and is attached to this report.
12. DIRECTORS RESPONSIBILITY STATEMENT
In accordance with the provisions of Section 134(5) of the Companies
Act, 2013, the Board hereby submits its Responsibility Statement that:-
(a) In the preparation of the annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
(b) The directors had selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the company at the end of the financial year and of the profit and
loss of the company for that period;
(c) The directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the company and
for preventing and detecting fraud and other irregularities;
(d) The directors had prepared the annual accounts on a going concern
basis; and
(e) The directors had laid down internal financial controls to be
followed by the company and that such internal financial controls are
adequate and were operating effectively.
(f) 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.
13. SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES
The Company does not have any Subsidiary, Joint venture or Associate
Company.
14. DEPOSITS
The Company has neither accepted nor renewed any deposits during the
year under review, no amount of principal or interest was outstanding
as on the date of balance sheet.
15. BOARD MEETINGS, BOARD OF DIRECTORS, KEY MANAGERIAL PERSONNEL &
COMMITTEES OF DIRECTORS
a) Board Meetings
The Board of Directors of the Company met 9 (nine) times during the
financial year 2014-15. The details of various Board Meetings are
provided in the Corporate Governance Report.
b) Changes In Directors And Key Managerial Personnel
Mr. Lajpat Sangwan was appointed as additional director in a company
w.e.f. 23.12.2014 and who holds office up to the date of this Annual
General Meeting and in respect of whom the Company has received a notice
in writing from a member proposing the candidature as an Executive
Director.
During the year, following are appointed as KMPs of company:-
1. Mr. Atamjit Singh Bawa (Managing Director)
2. Mr. Ramesh Chand Sharma (Chief Financial Officer)
3. Mr. Amit Kumar (Company Secretary)*
4. Ms. Megha Gandhi (Company Secretary)**
*Mr. Amit Kumar had resigned from the post of Company
Secretary-cum-Compliance Officer and KMP of a Company w.e.f.
15.06.2015.
** Ms. Megha Gandhi has appointed for the post of Company
Secretary-cum- Compliance Officer and KMP of a Company w.e.f.
01.08.2015 & 13.08.2015 respectively..
c) Independent Directors
The following Independent Directors who were re-appointed as per the
provisions of Companies Act, 2013, at the 35th Annual General Meeting
held on 29th September 2014 for a period of 5 (five) years, till the
conclusion of 40th Annual General Meeting to be held in the calendar
year 2019 as under:-
* Mr. Gurcharan Singh
* Mr. Surat Singh Bajwa
* Mr. Gurendra Singh Bedi
The Company has received declarations from all the Independent
Directors of the Company under Section 149(7) of the Companies Act,
2013 that they meet the criteria of independence as laid down under
Section 149(6) of the above Act.
d) Details of Ratio of Remuneration to Directors
The information relating to remuneration of directors as required under
Section 197(12) of the Act, is given in AnneXure "D" and is attached to
this Report.
e) Board Committees
The Board has constituted 4 committees which are as follows:-
1. Audit Committee
2. Nomination and Remuneration Committee
3. Stakeholders' Relationship Committee
4. Risk Management Committee
f) Board Evaluation
As required under the provisions of Section 134(3)(p) and Clause 49 of
the Listing Agreement, the Board has carried out an annual performance
evaluation of its own performance and the manner in which such
performance evaluation was carried out is as under:
The performance evaluation framework is in place and has been
circulated to all the directors to seek their response on the
evaluation of the entire Board and independent directors. The
Nomination and Remuneration Committee shall carry out evaluation of
Director's performance.
The criteria of evaluation is exercise of responsibilities in a bona
fide manner in the interest of the Company, striving to attend meetings
of the Board of Directors/ Committees of which he/she is a member/
general meetings, participation constructively and actively in the
meetings of the Board /Committees of the Board, etc.
i) Vigil Mechanism
The Company promotes ethical behaviour in all its business activities
and has put in place a mechanism for reporting illegal or unethical
behaviour. The Company has a Vigil mechanism and Whistle blower policy
under which the employees are free to report violations of applicable
laws and regulations and the Code of Conduct. The reportable matters
may be disclosed to the Ethics and Compliance Task Force which operates
under the supervision of the Audit Committee. Employees may also report
to the Chairman of the Audit Committee. During the year under review,
no employee was denied to have access for the same.
j) Related Party Transactions
All related party transactions that were entered into during the
financial year were on arm's length basis and were in the ordinary
course of business. There were no other material significant related
party transactions made by the Company with Promoters, Directors, Key
Managerial Personnel or other designated persons which may have a
potential conflict with the interest of the Company at large.
16. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
As per Section 186 of the Companies Act, 2013, no loans, guarantees and
investments made by the company during the financial year 2014-15.
17. STATUTORY AUDITORS
M/s Y.K. Sud & Co., Jalandhar, Chartered Accountants who are the
Statutory Auditors of the Company hold office as Statutory Auditors
until the conclusion of the 38th Annual General Meeting of the Company
to be held in the calendar year 2017.
Their appointment is subject to ratification by the members at the 36th
Annual General Meeting. The Company has received a certificate from
the above Auditors to the effect that if they are reappointed, it would
be in accordance with the provisions of Section 141 of the Companies
Act, 2013.
18. CORPORATE GOVERNANCE
Your Company has been complying with the provisions of Corporate
Governance as stipulated in Clause 49 of the Listing Agreement. A
separate report on Corporate Governance along with Auditors'
certificate on compliance of the Corporate Governance norms as
stipulated in Clause 49 of the Listing Agreement and Management
Discussion & Analysis forming part of this report are provided
elsewhere in this Annual Report.
The Register of Members and Share Transfer books of the company will be
closed with effect from Wednesday, 23rd September, 2015 to Tuesday,
29th September, 2015 (both days inclusive).
19. Disclosure as required under Section 22 of Sexual Harassment of
Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
The Company has in place an Anti Sexual Harassment Policy in line with
the requirements of the Sexual Harassment of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013. The Internal
Complaints Committee ("ICC") has been set up to redress the complaints
received regarding sexual harassment. All employees are covered under
this policy.
The following is the summary of the complaints received and disposed
off during the financial year 2014-15:
(a) No. of complaints received: NIL
(b) No. of complaints disposed: NIL
20. LISTING FEES
The Company confirms that it has paid the annual listing fees for the
financial year 2015-16 with its Stock Exchange(s).
21. ACKNOWLEDGEMENTS
Your Directors place on record their sincere thanks to bankers,
business associates, consultants, and various Government Authorities
for their continued support extended to your Company's activities
during the year under review. Your Directors also acknowledges
gratefully the shareholders for their support and confidence reposed on
your Company.
By Order of the Board of Directors
of Sarup Industries Ltd
Manjit Bawa Atamjit Singh Bawa
Place: Jalandhar
Date: 28.08.2015 Chairperson Managing Director
Mar 31, 2014
Dear Members,
The Directors submit their Report for the financial year ended 31st
March, 2014
Industry Overview
The domestic footwear market is driven by growing fashion consciousness
together with increased disposable income among India''s urban middle
class which contributes about 45% of overall footwear market, making
India the second-largest global producer of footwear across varied
segments after China. In the last 5 years, China''s imports have
increased by 132.67 percent and are eating the major market size of all
categories i.e. men, women and children. The imports from China have
surged the most by rising about 295 percent. Imports from USA have
declined but imports from all other countries have increased
tremendously.
Among the top ten countries to which the Indian Footwears are being
exported, exports to Belgium have registered the highest compound
annual growth rate (CAGR) of 22.7 percent in the last five years
whereas Italy has registered the lowest CAGR of -9.1 percent in the
last five years. Due to the increasing imports from China to Italy,
Indian presence has reduced in the total imports of Italy and thus has
recorded a negative growth rate. The maximum exports of India are made
to UK and US as they acquire the largest share in India''s total
Footwear exports with 18.9 percent and 11.3 percent respectively.
There should be implementation of best practices at a firm level and at
the sectoral level it should be through cluster based approach by
setting up cross-industry clusters and support them through
governmental interventions on infrastructure like port clearances and
power, promotion of footwear industry by giving benefits at domestic as
well as in exports and subsidy schemes. The future growth of the
footwear industry in India will continue to be market-driven, and
oriented towards EU and US markets. With technology and quality of the
footwear improving year after year, Indian Footwear industry is
stamping its class and expertise in the global footwear trade.
"Low cost of production, abundant availability of raw material,
ever-evolving retail ecosystem, buying patterns and a huge consumption
market are certain basic features that set apart the Indian footwear
market. As per the report of ASSOCHAM the global footwear market which
is growing at a CAGR of about five per cent, is currently estimated at
about Rs.10.15 lakh crore is likely to reach Rs. 12.34 lakh crore by 2015.
PRESENT FINANCIALS & COMPANY AFFAIRS
During the Year under review your company has registered an appreciable
growth in respect of turnover during the financial year 2013-14 which
amounting to Rs. 5857.08 Lacs. Your Company has registered a profit
before tax of Rs. 173.11 lacs.
BUSINESS OPERATIONS
Net profit increased by 66.27% to Rs. 1.38 crore in the year ended March
2014 as against Rs. 0.83 crore during the previous year ended March 2013.
Sales increased by 41.44% to Rs. 58.57 crore in the year ended March 2014
as against Rs. 41.41 crore during the previous year ended March 2013.
PROPOSED TRANSFER TO RESERVES
In terms of section 217 (1) (b) of the Companies Act, 1956 for the
Financial Year ending March 31,2014, the Company had transferred Rs. 25
lacs to the General Reserve.
Review of Operations
Your Company''s performance during the year as compared with that
during the previous year is Summarized below: -
(Fig In RsLacs)
Year ended Year ended
March 31st 2014 March 31st 2013
Sales of products and services 5857.07 4140.89
Other Income 102.13 261.34
Total Income 5959.20 4402.23
Total Expenditure other than
Interest and Depreciation 5495.49 3983.24
Profit before Interest,
Depreciation and Tax 463.71 418.99
Depreciation and Amortization
Expenses 120.77 139.48
Profit before Interest and Tax 342.94 279.51
Finance Cost (net) 169.83 175.83
Profit before Tax 173.11 103.68
Provision for Current Tax 34.64 20.74
Provision for Deferred Tax 0 0
Net Profit 138.47 82.94
Adjustments in respect of prior years 13.85 0.16
Surplus brought forward 673.22 661.82
Profit after Tax available for
appropriation 797.84 744.92
Your Directors recommend
appropriation as under:
Proposed Dividend on Equity Shares 58.54 48.79
Dividend Tax on Proposed Dividend 9.50 7.91
Transfer to General Reserve 25.00 15.00
Income Tax /TDS/ wealth Tax Provision 17.99 0
Surplus Carried Forward 686.81 673.22
Total Appropriation 797.84 744.92
DIVIDEND
The Directors recommended dividend of Rs. 1.80/- (18%) per share on
Equity shares for the year ended 31st March 2014, which will attract
dividend tax of Rs. 9.49 Lacs. The total payout will be Rs. 58.54 Lacs and
tax thereon Rs. 9.49 Lacs.
STATUTORY INFORMATION
Information pursuant to Section 217(2A) of the Companies Act, 1956,
read with the Companies (Disclosures of particulars in the Report of
Board of Directors) Rules, 1988, is given as under which forms part of
this Report.
There is no employee whose particulars are required to be given under
section 217(2A) of the Companies Act, 1956 and the Companies
(particulars of employees) Rules, 1975.
AUDITORS
M/s Y.K. Sud & Co., Jalandhar, Chartered Accountants who are the
Statutory Auditors of the Company retires at the forthcoming Annual
General Meeting and is eligible for reappointment. The retiring
Auditors have furnished a certificate of their eligibility for
reappointment pursuant to provisions of Section 139 & 142 of the
Companies Act, 2013 and have indicated their willingness to be
reappointed.
DEPOSITS
Your Company has not accepted any deposits during the financial year
and as such, no amount of principal or interest was outstanding on the
date of the Balance Sheet.
APPOINTMENT OF COST AUDITOR
Your Company does not come under the purview of Cost Records and Cost
Audit under Companies Act, 2013 and rules made thereunder so far. Any
amendments in the rules or law if carried out by Ministry of Corporate
Affairs will be adopted in letter and spirit.
COMPLIANCE CERTIFICATE
In accordance with the requirement of the section 383A of the Companies
Act, 1956, a Compliance Certificate for the financial year 2013-14 from
M/s Dinesh Gupta & Co., Practicing Company Secretaries, Jalandhar has
been attached.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE AND
OUTGO
Information relating to energy conservation, foreign exchange earned
and spent and research and development activities undertaken by the
Company in accordance with the provisions of Section 217 (1)(e) of the
Companies Act, 1956 read with Companies (Disclosure of particulars in
the report of Board of Directors) Rules, 1988 are given in ANNEXURE
"A" to the Directors'' Report.
MANAGEMENT DISCUSSION AND ANAYLSIS REPORT
Pursuant to Clause 49 of the Listing Agreement with the Stock
Exchanges, Management Discussion and Analysis Report is annexed as
ANNEXURE "B" along with Auditors'' Certificate regarding
Compliance of the Conditions of Corporate Governance is given as part
of this Annual Report.
CORPORATE GOVERNANCE
The report on Corporate Governance as stipulated under Clause 49 of the
Listing Agreement forms part of the Annual Report. The requisite
certificate from M/s Y.K. Sud & Co. Chartered Accountants, Confirming
Compliance with the conditions of Corporate Governance as Stipulated
under the aforesaid clause 49, is annexed hereto as ANNEXURE "C"
and forms part of this Annual Report.
AUDITORS'' REPORT
The observations of the Auditors in their report are self-Explanatory
and/or explained suitably in the Notes to the Accounts.
RESEARCH AND DEVELOPMENT
Footwear intended for use in multiple sporting activities represent
non-trivial design challenges. Research and development facilities are
available in house. Company is continuously engaged in using best
efforts for developing and testing of the products manufactured at
every level of production. Various factors like Gender, skill level,
and environmental conditions add further requirements upon footwear
designs and developing. Research activities mainly include the testing
of the developed product by using various tests like bond test, color
fastness, sole abrasion test and blooming test.
VOLUNTARY DELISTING OF THE COMPANY''S ORDINARY SHARES FROM CERTAIN
STOCK EXCHANGES
The Company''s application for delisting of ordinary shares is pending
with The Delhi Stock Exchange Ltd.
PAYMENT OF LISTING FEE
The stocks of the Company are available for trading in dematerialized
shape on the stock exchanges. The equity shares of the Company are
listed on Bombay Stock Exchange and that the annual fees for the year
2014-15 has been duly paid.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to the provisions contained in Section 217(2AA) of the
Companies Act, 1956, the Directors of your Company confirm:
a) That in the preparation of the annual accounts, the applicable
accounting standards have been followed and no material departures have
been made from the same;
b) That such accounting policies have been selected and applied
consistently, and such judgments and estimates have been made that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit or loss of the Company for that period;
c) That proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the provisions of
this Act for safeguarding the assets of the Company, for preventing and
detecting fraud and other irregularities;
d) That the annual accounts have been prepared on a going concern
basis.
ACKNOWLEDGEMENTS
Your Directors wish to express their deep sense of appreciation for the
committed services of all the employees of the Company. They place on
record their appreciation for the support and co- operation your
Company has been receiving from its Bankers, Customers, Distributors,
Dealers, suppliers and other business partners.
By Order of the Board
For Sarup Industries Limited
Place: Jalandhar
Date: 28.08.2014
Sd- Sd-
Manjit Bawa Atamjit Singh Bawa
Chairperson Managing Director
Mar 31, 2013
The Directors submit their Report for the financial year ended 31st
March, 2013.
Industry Overview
The Leather industry is bestowed with an affluence of raw materials as
India is endowed with 21% of world cattle & buffalo and 11% of world
goat & sheep population. Added to this are the strengths of skilled
manpower, innovative technology, increasing industry compliance to
international environmental standards, and the dedicated support of the
allied industries.
The Council for Leather Exports (CLE) has organized series of
interaction meetings in the regions to discuss on the Mega Leather
Cluster and create awareness amongst the industry and motivated the
industry to take steps to establish MLC. As per information on the
current status (Jan 2013), proposals are being prepared by the SPVs for
establishing six Mega Leather Clusters in various parts of the country
3 in Uttar Pradesh (Ramaipur, Sandila & Agra), 1 in Haryana (Mewat), 1
in Andhra Pradesh (Tada Mandal), 1 in Tamil Nadu (Perambalur).
The Government of India has appointed CSIR-CLRI as Project Management
Consultant (PMC) to assist the Department of Industrial Policy &
Promotion, Government of India in all matters concerning the Mega
Leather Clusters. The CLE is coordinating with SPVs, professional
agencies of the SPVs, CLRI, and Department of IPP in regard to the
establishment of Mega Leather Clusters.
As per the database of the DIPP, the Government of India has sanctioned
total grant of Rs. 37.73 Cr during the Tenth Plan, Rs. 240.94 Cr during the
Eleventh Plan, and Rs. 43.57 Cr were sanctioned till-date during the
current Twelfth Plan. As such, the total investment grant of Rs. 322.24
Cr has been sanctioned to the leather industrial units under IDLS
Scheme.
With the implementation of various industrial developmental programmes
as well as export promotional activities; and keeping in view the past
performance, and industry''s inherent strengths of skilled manpower,
innovative technology, increasing industry compliance to international
environmental standards, and dedicated support of the allied
industries, the Indian leather industry aims to augment the production,
thereby enhance export, and resultantly create additional employment
opportunities for overall one million people.
Review of Operations
Your Company''s performance during the year as compared with that during
the previous year is Summarized below: -
(Fig.In Rs. Lacs)
Year ended Year ended
March 31st,
2013 March 31st,
2012
Sales of products and services 4140.89 5174.52
Other Income 261.34 144.29
Total Income 4402.23 5318.81
Total Expenditure other than Interest and 3983.24 4753.01
Depreciation
Profit before Interest,
Depreciation and Tax 418.99 565.80
Depreciation and Amortization Expenses 139.48 156.71
Profit before Interest and Tax 279.51 409.09
Finance Cost (net) 175.83 193.28
Profit before Tax 103.68 215.81
Provision for Current Tax 20.74 35.95
Provision for Deferred Tax
Net Profit 82.94 179.86
Adjustments in respect of prior years 0.16 0.17
Surplus brought forward 661.82 588.65
Profit after Tax available
for appropriation 744.92 768.68
Your Directors recommend
appropriation as under :
Proposed Dividend on Equity Shares 48.79 48.79
Dividend Tax on Proposed Dividend 7.91 7.91
Transfer to General Reserve 15.00 50.00
Income Tax /TDS/ wealth Tax Provision 0 0.16
Surplus Carried Forward 673.22 661.82
Total Appropriation 744.92 768.68
PRESENT FINANCIALS & COMPANY AFFAIRS
During the Year under review your company has achieved the figures of Rs.
4140.89 Lacs in respect of sales for the year. Your Company has
registered a profit before tax of Rs. 103.68 lacs.
BUSINESS OPERATIONS
In the financial year 2012-13, the Global Economy faced fresh downside
risks that continue in light of renewed setbacks in the Euro area and
continued risks of excessive fiscal consolidation in the United States.
Current state of Indian economy makes it necessary for the government
to put in place a robust and implementable plan of action for its
revival. The economy has experienced a consistent fall in GDP growth,
alarmingly high levels of twin deficits i.e. Current Account Deficit
(CAD) and Fiscal Deficit as well as worrying volatility in the inflow
of foreign investments. Though inflationary pressure has receded in the
last quarter of 2012, it still remains above the target level. This
along with other worrying economic indicators has put the Indian
economy in a challenging pathway in the short term.
PROPOSED TRANSFER TO RESERVES
In terms of section 217 (1) (b) of the Companies Act, 1956 for the
Financial Year ending March 31, 2013, the Company had transferred Rs. 15
lacs to the General Reserve.
DIVIDEND
The Directors recommended dividend of Rs. 1.50/- (15%) per share on
Equity shares for the year ended 31st March 2013, which will attract
dividend tax of Rs. 7.91 Lacs. The total payout will be Rs. 48.79
Lacs and tax thereon Rs. 7.91 Lacs.
STATUTORY INFORMATION
Information pursuant to Section 217(2A) of the Companies Act, 1956,
read with the Companies (Disclosures of particulars in the Report of
Board of Directors) Rules, 1988, is given as under which forms part of
this Report.
There is no employee whose particulars are required to be given under
section 217(2A) of the Companies Act, 1956 and the Companies
(particulars of employees) Rules, 1975.
AUDITORS
You are requested to appoint Auditors for the current year and to
authorise the Board to fix their remuneration. The retiring auditors,
Y.K. Sud & co., Chartered Accountants, are eligible for reappointment.
A certificate from the Auditors has been received to the effect that
their reappointment, if made, would be within the limits prescribed
under Section 224(1B) of the Companies Act, 1956.
DEPOSITS
Your Company has not accepted/ invited any Deposits within the meaning
of Section 58A of the Companies Act, 1956 and the rules made there
under.
APPOINTMENT OF COST AUDITOR
As per the Governments directives, the Company''s cost records for the
year ended 31st March, 2012 has been audited by M/s Khushwinder Kumar &
Associates, Cost Accountants (FRN. 000102) who was appointed by the
Board with the approval of the Central Government.
In respect of Financial Year 2012-13 order No F No. 52/26/2010 dated
24.01.2012 your Company is not liable to Cost Audit. However the
compliance of the Cost Audit records will be done and for which
certification from Cost Auditor will be processed. Appointment of the
Cost Auditor M/s Khushwinder Kumar & Associates, Cost Accountants (FRN.
000102) has been approved by the Board and in process of approval from
Central Government as per orders dated 6th November, 2012.
COMPLIANCE CERTIFICATE
In accordance with the requirement of the section 383A of the Companies
Act, 1956, a Compliance Certificate for the financial year 2012-13 from
M/s Dinesh Gupta & Co., Practicing Company Secretaries, Jalandhar has
been attached.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE AND
OUTGO
Information relating to energy conservation, foreign exchange earned
and spent and research and development activities undertaken by the
Company in accordance with the provisions of Section 217 (l)(e) of the
Companies Act, 1956 read with Companies (Disclosure of particulars in
the report of Board of Directors) Rules, 1988 are given in ANNEXURE "A"
to the Directors'' Report.
MANAGEMENT DISCUSSION AND ANAYLSIS REPORT
Pursuant to Clause 49 of the Listing Agreement with the Stock
Exchanges, Management Discussion and Analysis Report is annexed as
ANNEXURE "B" along with Auditors'' Certificate regarding Compliance of
the Conditions of Corporate Governance is given as part of this Annual
Report.
CORPORATE GOVERNANCE
As required by the existing clause 49 of the Listing Agreements with
the Stock Exchanges, a detailed report on Corporate Governance is
included in the Annual Report. The Auditors have certified the
Company''s compliance of the requirements of Corporate Governance in
terms of Clause 49 of the Listing Agreement and the same is annexed as
ANNEXURE "C" to the Report on Corporate Governance.
AUDITORS'' REPORT
The observations of the Auditors in their report are self-Explanatory
and/or explained suitably in the Notes to the Accounts.
RESEARCH AND DEVELOPMENT
The Company believes that technological obsolescence is a reality. Only
progressive research and development will help us to measure up to
future challenges and opportunities. We invest in and encourage
continuous innovation. During the year under review, expenditure on
research and development is not significant in relation to the nature
and size of operations of your Company. Improvement of existing
processes and the endeavor to develop new processes and technologies
will be an ongoing activity. So too, will be our efforts to manufacture
premium quality products from quality grade raw materials.
VOLUNTARY DELISTING OF THE COMPANY''S ORDINARY SHARES FROM CERTAIN STOCK
EXCHANGES
The Company''s application for delisting of ordinary shares is pending
with The Delhi Stock Exchange Association Ltd.
PAYMENT OF LISTING FEE
The stocks of the Company are available for trading in dematerialized
shape on the stock exchanges. The equity shares of the Company are
listed on Bombay Stock Exchange and that the annual fees for the year
2013-14 has been duly paid.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to the provisions contained in Section 217(2AA) of the
Companies Act, 1956, the Directors of your Company confirm:
a) That in the preparation of the annual accounts, the applicable
accounting standards have been followed and no material departures have
been made from the same;
b) That such accounting policies have been selected and applied
consistently, and such judgments and estimates have been made that are
reasonable and prudent so as to give a true and fair view of the state
of affairs of the Company at the end of the financial year and of the
profit or loss of the Company for that period;
c) That proper and sufficient care has been taken for the maintenance
of adequate accounting records in accordance with the provisions of
this Act for safeguarding the assets of the Company, for preventing and
detecting fraud and other irregularities;
d) That the annual accounts have been prepared on a going concern
basis. The Directors of your Company further confirm that proper
systems are in place to ensure compliance of all laws applicable to the
Company.
ACKNOWLEDGEMENTS
Your Directors wish to express their deep sense of appreciation for the
committed services of all the employees of the Company. They place on
record their appreciation for the support and co-operation your Company
has been receiving from its Bankers, Customers, Distributors, Dealers,
suppliers and other business partners.
By Order of the Board
For Samp Industries Limited
Place: Jalandhar
Date: 31.08.2013 Sd- Sd-
Manjit Bawa Atamjit Singh Bawa
Chairperson Managing Director
Mar 31, 2010
The Directors are pleased to present the 31st Annual Report together
with the Audited Accounts for the year ended 31 st March 2010.
FINANCIAL RESULTS
Current Year Previous Year
ended 31.3.2010 ended 31.3.2009
(Fig. In Lacs)
INCOME & PROFITS
Sales & Other Income 3766.25 4262.09
Profit before Interest 303.77 376.89
Interest 99.93 99.89
Depreciation 95.68 93.82
108.16 183.18
Exceptional Item (Loss) 0.00 0.00
108.16 183.18
Profit before tax 108.16 183.18
Less: Provision for Taxation - Current (18.35) (25.15)
- Deferred (4.40) 10.99
Profit after tax 85.41 169.02
Surplus b/d 477.16 411.83
Others 0.00 0.00
Balance of P&L B/F 562.57 580.85
Proposed Dividend 39.03 39.03
Income Tax Provisions of Pr. Year
Interim Dividend
Dividend Tax on Proposed Dividend 6.63 6.63
Dividend Tax on Interim Dividend 0.00 0.00
Adjustment of advance tax 0.00 7.40
Transfer to General Reserve 30.00 50.00
Income Tax & Tds Adj/ Wealth Tax Prov. 0.29 0.63
SURPLUS CARRIED TO BALANCE SHEET 486.62 477.16
562.57 580.85
OPERATING PERFORMANCE
It is heartening to note that the company has started operation of its
manufacturing unit at V. Shympura, Tahliwal HP in March 2010. With the
operation of this unit, the company foresees substantial increase in
turnover and profits in the year to come. The unit has been equiped
with latest technology to meet the norms of international companies.
The company has also established a new manufacturing unit at Agra for
export of its products. The commercial production of Agra Unit has
commenced in April 2010.
During the first quarter of the year, the company was hit by ongoing
acute global recession and th production went down drastically.
However, the company managed to get the orders in the next quarter and
as such the sales of the company has recovered during the year and
decreased only by 11.63% from Rs. 3766,25 Lacs during the year ended on
March 31,2010 as against to Rs. 4262.09 Lacs during the year ended on
March, 31,2009
Due to huge expansion there has been a huge increase in labour cost on
account of deployment of new work force at new units and increase in
skilled workforce at the existing units to meet the requirement of new
line of business in the new units. As such the expenditure on employees
has increased from Rs. 712 lacs to Rs. 834 lacs. However with the
increase in turnover the labour component will come down and the
profitability of the company would increase in long run. The Net Profit
of the company due to the above factors have shown a decline which
accounted for Rs. 108.16 lacs during the yearended on 31st March 2010
as against Rs. 183.18 Lacs in the previous year. The Earning per share
as on March 31, 2010 is Rs. 2.63.
DIVIDEND
The Board of Directors have proposed a dividend at Rs. 1.20 per share
(12%) for the year 2009-10. The amount of dividend and corporate
dividend tax thereon will aggregate of Rs.45.66 Lacs. The dividend is
tax free in the hands of shareholders.
DIRECTORS
Mrs. Manjit Bawa, Col. Gurcharan Singh and Col. Surat Singh Bajwa
retire by rotation and being eligible offer themselves for
reappointment.
Energy conservation has remained an area of high priority for the
company. Your company uses the latest technology in the manufacturing
process which is help in the saving of the consumption of the energy
which will ultimately help in reducing the cost to the some extent and
benefited for the customer. Your company also take steps for the
awareness among the employees through training sessions regarding the
energy saving.
The Auditors of the company M/s Y.K. Sud & Co., retires at the
forth-coming annual general meeting and offer themselves for
re-appointment. The Board commends their reappointment. The Note
referred to in Auditors Report are self-explanatory and do not require
any further comments.
There is no employee whose particulars are required to be given under
section 217(2A) of the Companies Act, 1956 and the Companies
(particulars of employees) Rules, 1975. Information pursuant to Section
217(1) (e)of the Companies Act, 1956, read with the Companies
(Disclosures of particulars in the Report of Board of Directors) Rules,
1988, is given in Annexure-A annexed hereto, forms part of this Report.
APPOINTMENT OF COST AUDITOR
The Board has appointed M/s Meenu & Associates as Cost Auditor for the
year 2010-11 in pursuance of sections 233-B of the Companies Act, 1956.
COMPLIANCE CERTIFICATE
In accordance with the requirement of the section 383Aof the Companies
Act, 1956, a Certificate from M/s Dinesh Gupta & Co., Practicing
Company Secretaries, Jalandhar have been certifying that all legal
requirements, in respect of the company for the yearended 31* March
2010 have been complied with
CORPORATE GOVERNANCE
Pursuant to clause 49 of the listing agreements with Stock Exchanges, a
Management Discussion andAnalysis, Corporate Governance Report,
Managing Directors and Auditors Certificate regarding compliance of
conditions of Corporate Governance are made a part of the Annual
Report.
Directors Responsibility Statement
Pursuant to the Sec 217(2AA) of the Companies (Amendment) Act, 2000 the
Director confirms that:
(i) In preparation of the Balance Sheet and the profit & Loss Account
of the Company the applicable accounting standards had been followed
along with proper explanation relating to material departures
(ii) The Director had selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year and of the loss of the
Company for that period.
(iii) The Directors had 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 other
irregularities.
(iv) the Directors had prepared the annual accounts on a "going concern
basis".
The stocks of the company are available for the trading in
dematerialized shape on the stock exchanges.
The equity share of the Company are listed on Bombay Stock Exchange and
that the annual fees for the year 2010-2011 has been duly paid.
The Stock Exchange Phiroze Jeejeebhoy Towers Dalai Street, Mumbai -400
001
VOLUNTARY DELISTING OF THE COMPANYS ORDINARY SHARES FROM CERTAIN STOCK
EXCHANGES
The companys application for delisting of ordinary shares is pending
with The Delhi Stock Exchange Association Ltd.
AKNOWLEDGEMENT
The employees of the company have worked with dedication and commitment
during the year and have made an excellent contribution to achieve the
high level of profitability. The Board wishes to record its deep
appreciation to all employees of the company. The Board also wishes to
place on record their thanks to the Bankers and suppliers for the trust
and confidence reposed and to the Customers for their valuable
patronage.
On behalf of the Board
Place: Jalandhar Bawa Atamjit Singh Manjit Kaur
Dated: May 29 2010 Managing Director Chairperson