TO THE SHAREHOLDERS,
Your Directors have the pleasure in presenting the 25m Annual Report on theperformance of the Company for the year ended 31 st March, 2010 together with the AuditedStatement of Accounts and Auditors Report thereon.
|1. FINANCIAL RESULTS : || ||(Rs. In LACS) |
| ||2009- 2010 ||2008-2009 |
|Gross Revenue (incl. misc. income) ||676.30 ||3615.87 |
|Gross Profit / (loss) (before financial charges and depr.) ||72.42 ||30.17 |
|Financial Charges ||0.00 ||24.54 |
|Depreciation ||0.00 ||4.31 |
|Profit / (loss) ||72.42 ||1.32 |
The Directors are hopeful of further improvement in the near future.
2. OPERATIONS :
True to the expectations, working and operational parameters of the Company weresatisfactory. The steps taken during the previous year were further pursued to reducecosts. The increase in total net profit is mainly due to decrease in Operating Expensesand Interest payments.
Further, the increase in interest income has improved the profitability of the Companyon year on year basis. The textile industry witnessed intense competition on account ofwhich the turnover was adversely affected in the current financial year. As the Companyhad large quantities of finished goods in stock, no production activities were carried outin this financial year.
Your Compa/iy is exploring various investment avenues to maximize Shareholders Wealth.
In order to conserve the financial resources of the Company, the Directors do notrecommend any dividend for the year under review.
4. FUTURE PROSPECTUS :
Your Company is venturing in the new stream of Business of Broking, Finance, tradingand investments in shares, commodities and currencies, including Debt segment, Futures andoptions Segment or other segments of Recognized stock Exchange. Considering the pastperformance and future prospects of the financial services sector, the Management is veryoptimistic on the various growth opportunities in the proposed stream of businesses. YourManagement also possesses the required expertise and resources to gain strategic benefitsin the long run.
5. DIRECTORS :
Mr. Sagar Ruparelia has been appointed as a Joint Managing Director of the Company forthe term of 5 years w.e.f 1sl April, 2010.
Mr. Viranchi Trivedi, Mr. Rakesh Doshi, Mr. Dilip Shah and Mr. Sailesh Mehta,Additional Directors of the Company, have been proposed to be Appointed as DirectorsLiable to retire by rotation upon the notice received in writing from a Member of theCompany along with the deposit of Rs.500/- signifying their intention to propose the saidDirectors as candidate for the Office of Directors.
All the Directors of the Company holding office as on 31.03.2010 have furnished awritten representation of compliance u/s 274 (1) (g) of the Companies Act, 1956.
The Company's Auditors M/s. SRY & ASSOCIATES, retire at the conclusion of ensuingAnnual General Meeting and being eligible offer themselves for reappointment. You arerequested to appoint auditors to hold such office from the conclusion of this AnnualGeneral Meeting up to the conclusion of next Annual General Meeting and to fix theirremuneration.
7. COMMENTS ON AUDITORS REPORT
The observations made by the Auditors in their report has been fully clarified in therelevant notes forming part of the Accounts and being self-explanatory no further commentsare required.
8. PARTICULARS OF EMPLOYEES
During the year under review, no employee of the Company was in receipt of remunerationexceeding the sum prescribed under section 217(2A) of the Companies Act 1956, read withthe Companies (particulars of employees) Rules 1975. Thus furnishing of particulars underthe Companies (particulars of employees) Rules 1975 does not arise.
9. DIRECTORS RESPONSIBILITY STATEMENT:
In accordance with the provisions of section 217 (2AA) of the Companies Act, 1956, yourDirectors place on record a responsibility statement stating that:
(i) In the preparation of the annual accounts, applicable accounting standards havebeen followed along with proper explanation relating to material departures.
(ii) That the Directors, in consultation with the auditors, have selected suchaccounting policies and applied them consistently and made judgments and estimates thatare reasonable and prudent so as to give a true and fair view of the state of affairs ofthe Company at the end of the financial year and of the profit and loss of the Company forthat period.
(iii) That the Directors have taken sufficient and proper care for the maintenance ofadequate accounting records in accordance with the provisions of this Act for safeguardingthe assets of the Company and for preventing and detecting material fraud and otherirregularities.
(iv) That the Directors have prepared the Annual Accounts on a going concern basis.
|STOCK EXCHANGE ||ADDRESS |
|The Ludhiana Stock Exchange Association Limited ||LSE Building, Feroze Gandhi Market, Ludhiana - 141001 |
|The Bombay Stock Exchange Limited ||Phiroze Jee Jee Bhoy, towers, 25th Floor, Dalai Street, Mumbai - 400001. |
|The Delhi Stock Exchange Limited ||DSE House, 3/1 Asaf Ali Road, New Delhi - 110002 |
Company is reviewing the possibility of Delisting Shares from Ludhiana and Delhi StockExchange.
11. CORPORATE GOVERNANCE:
As required under Clause 49 of the Listing Agreement with the Stock Exchanges, thereport on "Corporate Governance" together with the Auditor's Certificateregarding compliance of the Code of Corporate Governance is annexed herewith.
12. FIXED DEPOSITS:
The Company has not accepted any fixed deposits and provisions of the section 58A ofthe Companies Act 1956 are not applicable to the Company.
13. SAFETY, POLLUTION CONTROL AND QUALITY CONTROL:
Your Company is committed to achieve and maintain at all the levels safety in plantoperations for which safety provisions have been made and are checked periodically. TheCompany has a well-equipped laboratory to ensure quality control of its raw material andproducts and stringent quality norms have been incorporated.
14. CONVERSATION OF ENERGY, TECHNOLOGY ABSOPTION AND FOREIGN EXCHANGE EARNING ANDOUTGO:
The information required under Companies (Disclosure of particulars in the report ofthe Board of Directors) Rules, 1998 is annexed herewith.
Directors wish to place on record their sincere appreciation of the valuable servicesand cooperation extended by the Bankers and also the contribution, unstinted efforts andthe spirit of dedication shown by them in the operations of the Company during the year.
Your Directors also place on record their appreciation of all the employees,consultants and others for their untiring efforts and collective contribution towards theperformance of the Company.
| ||For and on behalf of Board of Directors |
|Place : Ludhiana ||Bhavesh Makwana |
|Date : 25th May, 2010 ||(Managing Director) |
ANNEXURE TO THE DIRECTORS REPORT
INFORMATION AS PER SECTION 217(1)(E) READ WITH THE COMPANIES (DISCLOSUSERS OFPARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES 1988 AND FORMING PART OF DIRECTOR'SREPORT FOR THE YEAR ENDED 31st MARCH 2009.
A. CONSERVATION OF ENERGY
Your Company has always been conscious of the need to conserve energy and has alwaysattempted various measures for the same wherever possible to achieve reduction in cost ofproduction. The Company has initiated various measures on suggestions of experts in theareas where energy reduction and fuel and oil conservations are possible.
FORM FOR DISCLOSURES OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY POWER ANDFUEL CONSUMPTION.
|1 ELECRICITY ||2009-10 ||2008-09 |
|(a) Purchased (Unit in Lacs) || ||2.13 |
|Total Amount (in Lacs) || ||9.06 |
|Rates/Unit || ||4.25 |
2. CONSUMPTION PER UNIT PRODUCTION
|Electricity ||Per unit || ||1.00 |
|Husk ||Per unit || || |
B. RESEARCH AND DEVELOPMENT (R&D)
1. Specific areas in which R&D carried out by the Company
- Improvement of Product Quality and Process Efficiency.
- Optimizing Production Efficiency.
- Cost Reduction.
2. Benefits derived as a result of the above R&D
- Improvement in the Quality of Manufactured products.
- Pollution free environment in and around factory areas.
- Cost Economy and plant efficiency.
- Conservation of Water, Mineral, Electricity and Fuel
- Development of new market segment.
3. Future plan of action:
- Further improvement in the Quality of products and processes.
- Process modification or substitution to improve the quality of treated effluent.
- Exploration of avenues for continuous cost reduction measures.
- Technical up-gradation and pollution control facilities.
- Development of value added Yarn.
4. Expenditure on R & D:
(d) Total R&D expenditure as a percentage of total turnovers.
C. TECHNOLOGY ABSORPTION
1. Efforts have been made towards technology absorption, adaptation and innovation. Theproducts are checked with reference to the quality control on random basis. In houselaboratory has been maintained where in various lots of products are continuously passedthrough stringent quality control. Efforts have also been initiated to adopt moreinnovative measures for upgradation of the technology whereby much better quality productcan be produced.
2. Benefits derived as a result of the above efforts:
(a) Wastage has been reduced considerably.
(b) Pollution control measures have been adopted as per the desirable norms.
3. Particulars of technology in the last five years:
|(a) Technology Imported ||NIL |
|(b) Year of Import ||NIL |
|(c) Had Technology been fully absorbed ||NIL |
D. FOREIGN EXCHANGE EARNING AND OUT GO
| || ||2009-10 ||2008-09 |
|(a) ||Foreign Exchange Earned || || |
|(b) ||Foreign Exchange Used || || |
| ||(CIF value of imports & expenditure in foreign currency || || |
|For and behalf of Board of Directors || |
|Place : Ludhiana ||Bhavesh Makwana |
|Date : 25th May, 2010 ||(Managing Director) |