Your Directors have pleasure in presenting the 16th Annual Report together with theaudited Statements of Accounts for the year ended March 31st 2010.
| || ||Amount in Rs. |
| ||For the year ended 31.03.2010 ||For the year ended 31.03.2009 |
|Sales & Other Income ||3,95,65,112 ||3,68,73,017 |
|Profit before interest and depreciation ||46,90,843 ||51,62,028 |
|Financial Expenses ||1,37,538 ||1,15,567 |
|Depreciation ||13,82,192 ||58,34,772 |
|Profit (Loss) after Depreciation before Exceptional Items ||45,97,266 ||4,40,000 |
|Loss on disposal / write off of assets ||14,26,153 ||3,48,311 |
|Public Issue Expenses Written Off ||32,30,269 || |
|Fringe Benefit Tax || ||16,710 |
|Loss during the year ||59,156 ||8,05,021 |
OPERATIONS AND FUTURE PROSPECTS
During the year under review the company has achieved sales of Rs.346.93 Lacs asagainst Rs. 336.91 Lacs in the previous year.
In view of the loss no dividend has been declares during the year.
MANAGEMENT DISCUSSION AND ANALYSIS
(a) Industry Structure and Development
Your company is engaged in the manufacturing of textiles made-ups and is directlylinked with the performance of the textiles industry.
(b) Opportunity and Threats
Global buyers have begun looking at India for quality supplies at lower costs. Yourcompany is doing regular efforts for cost reduction and to improve the efficiency andproductivity.
The company hopes to be benefited from their continuous efforts and expects an increasein demand in the Indian and Exports markets.
(d) Risks and Concern
The company has to meet the stiff competition, exchange rate fluctuation, uncertaincustomer schedules, aggressive pricing strategy of competitors and changing technology.
(e) Internal Control and their Adequacy
Your company possesses strong internal control system to ensure that all the assets aresafeguarded and protected against unauthorized use or disposition and that transactionsare authorized, recorded and reported correctly.
(f) Human Resources/Industrial Relations
It is the companys belief that Human Resources is the driving force towardsprogress and success of a Company. The company seeks to motivate and retain itsprofessionals by offering reasonable compensation and opportunity to grow in theorganization. The total permanent employees strength was Nineteen (no.19) as on 31stMarch, 2010. The Industrial relations remained cordial during the year.
Shri Dinesh Jain and Shri S.B.L. Jain, Directors of the Company retire by rotation atthe ensuing Annual General Meeting and being eligible, offer themselves for reappointment.
M/s. R. Verma & Associates, Chartered Accountants, Statutory Auditors of theCompany retire at the conclusion of the ensuing Annual General Meeting, and beingeligible, offer themselves for re-appointment of the company as a statutory auditor.
Your Company has always strived to comply with the appropriate standards for goodcorporate governance and It has taken adequate steps to ensure that all mandatoryprovisions of Corporate Governance as prescribed under the Listing Agreements with StockExchanges are complied with.
A separate report on Corporate Governance along with a Certificate of Compliance fromthe Auditors, form part of this Report.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2AA) of the Companies Act, 1956, the Directors confirm that:
1. in the preparation of the annual accounts, the applicable accounting standards havebeen followed and that there are no material departures;
2. they had selected such accounting policies and applied them consistently and madejudgments and estimates that are reasonable and prudent so as to give a true and fair viewof the state of the affairs of the Company at the end of the financial year and of theloss of the Company for the year ended 31st March, 2010;
3. they had taken proper and sufficient care for the maintenance of adequate accountingrecords in accordance with the provisions of the Company Act, 1956 for safeguarding theassets of the Company and for preventing and detecting fraud and other irregularities;
4. they had prepared the annual accounts on a going concern basis.
PARTICULARS OF EMPLOYEES
Particulars of employees in receipt of the remuneration in excess of the amountspecified in Section 217 (2A) of the Companies Act, 1956 read with Companies (Particularsof Employees Rules, 1975) as amended from time to time do not apply to the Company asthere was no employee in receipt of remuneration in excess of specified amount during theyear.
The Company has not accepted any deposits from public during the year.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING AND OUTGO
Information under section 217(1)(e) of the Companies Act, 1956, read with the Companies(Disclosure of particulars in the Report of Board of Directors) Rules, 1988 is givenbelow:
A. CONSERVATION OF ENERGY
The Company continues its policy of giving priority to energy conservation measuresincluding regular review of energy generation and consumption and effective control onutilization of energy.
During the year under report, Company has consumed 126856 (Previous Year 114506) unitsof power (KWH).
B. TECHNOLOGY ABSORPTION
Your Directors are of the opinion that the company has already opted for latesttechnology for producing Carpets, Durries and made-ups. Hence information specified inForm B is not applicable.
C. FOREIGN EXCHANGE EARNINGS & OUTGO:
|Particulars ||Current Year ||Previous Year |
| ||(Rs. in Lacs) ||(Rs in Lacs) |
|1. Foreign Exchange Earnings Exports on FOB basis ||320.88 ||317.92 |
|2. Foreign Exchange outgo ||Nil ||1.56 |
Your directors wish to place on record its sincere appreciation for wholehearted timelysupport and contribution provided by your Companys Bankers Indian Overseas Bank andall the vendors and dedication and commitment of the employees at all levels.
Your directors also take this opportunity to thank all the valued customers who haveappreciated our products and patronized them.
Your directors convey their grateful thanks to the Government Authorities (Central& State), Business Associates & Shareholders, for their continued assistance,co-operation and patronage given by them
| ||For and on Behalf of the Board |
| ||Sd/- |
|New Delhi ||Dr. M. R. Jain |
|22nd May, 2010 ||Chairman & Managing Director |