DIRECTORTo,
The Members,
The Board of Directors present the 21 st Annual Report together with Audited Statementof Accounts for the year ended 31 st March, 2010 along with the cash flow statements:
1 . OPERATION AND FINANCIAL RESULTS
| Year Ended 31/03/2010 | Year Ended 31/03/2009 |
| ( Rs. In Lacs ) | ( Rs. In Lacs ) |
| Sales | 799.30 | 1612.09 |
| Other Income | 108.51 | 13.82 |
| Profit / (Loss)/for the year before | 139.81 | 52.39 |
| Depreciation & Tax | | |
| Less: Depreciation | 39.16 | 45.89 |
| Profit/(Loss) before Tax | 100.65 | 6.50 |
| Less : Provision for Tax | 2.25 | 0.90 |
| Profit after tax | 98.40 | 5.60 |
| Add/(Less): Provision for Diminution in value of | 0.16 | (0.73) |
| Investment | | |
| Less: Prior Period adjustment | 0.00 | 1.30 |
| Profit/ (loss) for the year | 98.56 | 3.57 |
| Loss Brought forward from previous year | (503.30) | (506.87) |
| Profit/ (Loss) carried to Balance Sheet | (404.74) | (503.30) |
2. PERFORMANCE
During the year, the company has produced 875.10 tons against 1896.73 tons during theprevious year resulting in sales turnover of Rs. 799.30 lacs as against Rs. 1612.09 lacsduring the previous year. During the year under review the company had undertaken job workactivities and hence the sales have been reduced.
In terms of approval granted by members by passing necessary Resolution by means ofPostal Ballot company has disposed oft its closed manufacturing unit situated at MotaPondha in the month of November 2009.
3. DIVIDEND
Directors do not recommend any dividend due to the accumulated losses suffered by thecompany.
4. DIRECTORS
Shri Dinesh P. Turakhia retires by rotation and being eligible offers himself forreappointment.
5. AUDITORS
M/s. Poladia & Co. Chartered Accountant have given their consent for reappointmentfor Financial Year 2010-2011. Members are requested to re-appoint them.
6. PARTICULARS OF EMPLOYEES
There is no employee in respect of whom information u/s. 217 (2A) of the Companies Act,1956 is required to be given.
DIRECTORS RESPONSIBILITY STATEMENT U/S. 217 (2AA)
It is hereby confirmed that in respect of Financial Year ended on 31/03/2010.
a) In the preparation of annual accounts, the applicable accounting standards have beenfollowed.
b) The Directors have selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Company at the end of the financial year ended on31/03/2010 and of the profit of the company for that period.
c) The Directors have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of Companies Act, 1956 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities.
d) The Directors have prepared the Annual Accounts on a going concern basis.
8. AUDITORS REPORT
Auditors notes and observations are self explanatory and do not call for any furthercomments.
9. CORPORATE GOVERNANCE
Pursuant to clause 49 of The Listing Agreement with the Stock Exchange, Mumbai, amanagement Discussion and Analysis Report, Corporate Governance Report and AuditorsCertificate regarding compliance of Corporate Governance are made a part of the AnnualReport.
10. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS / OUTGO
The Statement giving particulars of Conservation of Energy, Technology Absorption andForeign Exchange Earnings and Outgo is Annexed hereto as Annexture 1.
11. DEPOSITS
The Company has not accepted any Deposits from the Public.
12. ACKNOWLEDGEMENT
The Directors wish to place on record appreciation for the efforts put in by all theemployees of the Company.
| For and on Behalf of the | Board of Directors |
| sd | sd |
| Place : Mumbai | J. K. VAKHARIA | V. J. VAKHARIA |
| Dated: 28th May 2010 | MANAGING DIRECTOR | DIRECTOR |
ANNEXURE 1 TO DIRECTOR'S REPORT 2009-2010
Information as per Section 217 (1) (e) read with Companies (Disclosure of particularsin the Report of Board of Directors) Rules, 1988 and forming part of the Directors Reportfor the year.
I. CONSERVATION OF ENERGY:
a. Conservation Measures taken:
The Company is regularly making efforts for enhancement in capacity utilization, costcompetitiveness and quality improvement of products. Utilities are being combined foreffective energy conservation.
b. Additional investment and proposals, if any, being implemented for reduction inconsumption of energy:
Studies to reduce energy consumption of existing units are going on.
c. Impact of the measures (a) & (b) above for reduction of Energy Consumption andconsequential impact on the cost of Production of goods:
The Company is making efforts to save the cost of power. The Company is constantlyinvestigating avenues for cost saving as an on-going process.
TOTAL ENERGY CONSUMPTION AND ENERGY CONSUMPTION PER UNIT OF PRODUCTION AS PER FORM 'A'OF THE RULES IN RESPECT OF INDUSTRIES SPECIFIED IN THE SCHEDULE THEREOF:
| 2009-2010 | 2008-2009 |
| A. POWER AND FUEL CONSUMPTIOM : | | |
| 1. Electricity | | |
| (a) Purchases Units (Lacs) | 22.16 | 24.19 |
| Total Amounts (Rs. in lacs) | 87.98 | 92.85 |
| Rate per Unit (Rs.) | 3.97 | 3.75 |
| (b)Own Generation: | | |
| Through Diesel Generator | | |
| Units (in lacs) | - | - |
| Units per Ltr. of Diesel Oil | — | — |
| Cost per Units (Rs.) | — | — |
| 2. Coal | — | — |
| 3. Furnace Oil | — | — |
| 4. Other / Internal Generation Steam | — | |
| B. CONSUMPTION PER UNIT OF PRODUCTION: | | |
| (Product: Polyester Texturised Yarn) | | |
| (Product: Polyester Texturised Yarn & Polyester Twisted Yarn) | | |
| 1. Electricity (Unit per M.T.) | 1212 | 1307 |
| 2. Coal (Kg) | - | - |
| 3. Furnance Oil Liter | - | - |
| 4. Steam(Tons) | - | - |
II. TECHNOLOGY ABSORPTION:
EFFORTS MADE IN TECHNOLOGY ABSORPTION AS PER FORM B OF THE ANNEXURE TO THE RULES.
| 1. Research & Development (R & D) | NIL | AT PRESENT |
| .2. Technology Absorption adaptation and Innovation | NIL | AT PRESENT |
III. FOREIGN EXCHANGE EARNINGS AND OUT GO:
| a. Activities relating to exports initiative taken to increase export markets for products and services and export plan. | NOTAPPLICABLE | |
| b. Total Foreign exchange used and earned: | | |
| 1. Expenditure in Foreign Currency | Nil | Nil |
| 2. Value of Import on CIF basis (Rs.in Lacs) | — | 2.20 |
| 3. F.O.B. Value of exports (Rs.in Lacs) | 0.69 | 1.52 |