Your Directors present herewith the 16th Annual Report on the business andoperations of the Company and the audited accounts for the year ended 31stMarch 2010.
1 . FINANCIAL RESULTS AND OPERATIONS
The summarized financial results for the year ended 31st March 2010 ascompared with the previous year are as under:
|S.No Particulars ||Year ended 31.03.2010 ||Year ended 31.03.2009 |
|1. Sales ||63.46 ||145.09 |
|2. Other Income ||9.98 ||6.25 |
|3. TOTAL INCOME (1+2) ||73.44 ||151.34 |
|4. Total Expenses other than interest ||72.31 ||141.27 |
|5. Interest ||0.00 ||0.00 |
|6. Total Expenses other than Depreciation ||72.31 ||141.27 |
|7. Depreciation ||75.35 ||74.69 |
|8. Miscellaneous Expenditure Written off ||0.00 ||16.18 |
|9. Profit/ (Loss) for the before tax ||(74.22) ||(80.81) |
|10. Provision for tax ||0.00 ||0.00 |
|Fringe benefit Tax ||0.00 ||0.72 |
|MAT ||0.00 ||1.14 |
|Deferred Tax(Liability)/Asset ||17.29 ||16.14 |
|Profit/(Loss) for the year after tax ||(56.93) ||(66.53) |
The operational performance of the Company is discussed in detail under the ManagementAnalysis and Discussion Report.
The company has not transferred any amount to reserves during the financial year underreview
Your directors consider it prudent to conserve the resources of the Company and hencehave not declared any divided to sustain the future growth of the Company.
The Company has not accepted any fixed deposits from the public within the meaning ofsection 58A of the Companies Act, 1956.
5. INFORMATION PURSUANT TO THE COMPANIES DISCLOSURE OF (PARTICULARS IN THE REPORT OFTHE BOARD OF DIRECTORS) RULES 1988
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING AND OUTGO(pursuant to sec 217(l)(e))
A. Conservation of energy:
I. Adequate measures have been taken for conservation of energy.
II. There is no additional investment and proposal for reduction of energyconservation.
III. As there is no additional investment, there is no impact on the business of thecompany
B. Technology Absorption
i) Research & Development (R&D)
a) Specific areas in which R & D carried out by the company
For having the modern design, patterns and styles and improving the quality of theproducts and to have unique, royal and classic designs, the company is constantly carryingout research. The Company has developed new Yam Structure which increases the quality interms of life of Carpet.
b) Benefits derived as a result of R&D
The most impressive designs with highest standard in quality meeting the present marketdemand, have emerged out of research carried out by the Company. The new Yarn has beengreatly accepted in the market.
c) Future plan of action
The quality designs of carpets has to to be improved with a view to have uniquefeatures, pattern and design.
Expenditure on R & D: The Company has not made any expenditure on R& D.
ii) Technology absorption, adoption and innovation.
During the year the company has neither absorbed any new Technology nor adopted orinnovated any as the existing technology is sufficient to meet the present marketrequirements.
6. FOREIGN EXCHANGE EARRINGS AND OUT GO:
|Foreign Exchange Earnings ||: NIL |
|Foreign Exchange out go ||: 16.69 Lakhs |
7. PARTICULARS OF EMPLOYEES
No employee of the Company was in receipt of remuneration, which requires disclosureunder section 21 7(2A) of the Companies Act, 1956.
In accordance with the requirements of the Companies Act 1956, read with the Articlesof Association of the company Sri Maqsood Ahmed and Mrs Meena Kerur retire by rotation atthis Annual General Meeting, and being eligible offer themselves for reappointment.
M/s N.V Ganagadhara & Associates, Chartered Accountants, Statutory Auditors of theCompany and WHEREAS a special notice has been received pursuant to Section 225(1) of theCompanies Act, 1956 from shareholders for the appointment of M/s Ramasamy Koteswararao& Co., Chartered Accountants, Hyderabad in place of retiring Auditors, namely M/s N.VGanagadhara & Associates, Chartered Accountants. It is proposed to appointment him asAuditors for the financial year 2010-201 1 and fix their remuneration. A letter forunwillingness to continue as a Statutory Auditor is obtained from the Retiring Auditor.Aconsent letter and certificate is received from the New Auditors that if appointment ismade, he will be within the limits laid down under section 224 (1 B) of Companies Act,1956.
10. DIRECTOR'S RESPONSIBILITY STATEMENT
In accordance with sub-section (2AA) of section 21 7 of the Companies Act, 1956, theDirectors of the Company state:
a. That in the preparation of the accounts for the financial year ended 31stMarch 2010, the applicable accounting standards have been followed along with properexplanation relating to material departures.
b. That the Directors have selected such accounting policies and applied themconsistently and made judgments and estimates that were reasonable and prudent so as togive a true and fair view of the state of affairs of the Company at the end of thefinancial year and of the profit of the Company for the year under review.
c. That the Directors have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of the Companies Act, 1 956for safe guarding the assets of the Company and for preventing and detecting fraud andother irregularities.
d. That the Directors have prepared the accounts for the financial year ended 31stMarch 2010 on a 'going concern basis.
11. CORPORATE GOVERNANCE REPORT
A separate report on corporate governance along with Auditor's certificate on itscompliance is attached to this report.
12. MANAGEMENT DISCUSSION & ANALYSIS REPORT
A Separate Report of Management Discussion and Analysis Report as required under theProvisions of listing agreement attached to this report.
13. CASH FLOW STATEMENT
In conformity with the provisions of Clause 32 of the Listing Agreement with the StockExchanges, the cash flow statement for the year ended March 31, 2010 is annexes hereto.
The Equity shares of the company Listed on the Bombay Stock Exchange Limited. Thecompany has paid the applicable listing fee to the BSE up-to-date.
15. AUDIT COMMITTEE
In accordance with Clause 49 of the Listing Agreement, the company has constituted theAudit Committee, which consist of Three Independent Directors and Non Executive Directorsof the company Viz. Mr.K.Suresh, Mrs.Meena Kerur and Mr.Maqsood Ahmed. The Audit committeefunctions in terms of the role and powers delegated by the Board of Directors keeping inview of the Provisions of Clause 49 of Listing Agreement and Section 292A of the CompaniesAct 1956.
16. HUMAN RECOURSE
The Board of Directors would like to place on record its deep appreciation to all theemployees for their dedicated services to the company. Our organizational culture and workenvironment is central to our ability to complete effectively.
Company has taken initiative to appoint Qualified Company Secretary to comply with theprovision of Section 383A of the companies Act, Listing Agreement. The Efforts of thecompany was not fruitful, however company is availing the services from Practicing CompanySecretary.
1 7. ACKNOWLEDGEMENT
Your Directors take this opportunity to express their appreciation for the cooperationand continued support received from various departments of Central and State Governments,financial institutions, Banks, the Suppliers, Customers and Shareholders of the Company.
| ||By order of the Board of Directors |
| ||Sd/- |
|Place: Hyderabad ||S.NAIK |
|Date : 13-08-2010 ||Chairman & Managing Director |