The Company primarily operated in spinning of worsted and spun yarn. The company has manufacturing set up base in Ludhiana in the state of Punjab and Corporate Office is located in Ludhiana of Punjab State. The company has developed major part of its production capacity to job works. Due to lack of profitable job work orders and continuous losses the company discontinued its operations in the financial year 2019-20. In order to supplement its income, the company has given its vacant factory buildings on lease for warehousing purpose. The income from lease is recognized as other income.
The other income of the company, including the income from lease, during the financial year 2021-22 is F155.66 Lacs in comparison to F168.98 Lacs for previous financial year 2020-21.
SEGMENTWISE- PRODUCTWISE PERFORMANCE
The Company has only one segment i.e. manufacturing of Acrylic and worsted yarn.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has well defined internal control system. The Company takes abundant care to design, review and monitor the working of internal control system. Internal Audit in the organization is an independent appraisal activity and it measures the efficiency, adequacy and effectiveness of other controls in the organization. All significant issues are brought to the attention of the Audit Committee of the Board.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
The financial statements have been prepared in accordance with the requirements of the Companies Act, 2013 and the Indian accounting standards issued by the Institute of Charted Accountant of India. The details of the financial performance of the company are appearing in Balance sheet, Profit & Loss Statement and other financial statements forming part of this annual report.
FINANCIAL STATEMENT
Financial Statement of the company have been prepared in compliance with the requirements of the Companies Act. 2013 and Indian Accounting Standard.
The management of the Company accepts responsibility for the integrity and objectivity of these financial statements, as well as various estimates and judgments used therein.
However, any unforeseen and uncontrollable external factors may alter these judgments.
FINANCIAL PERFORMANCE AND ANALYSIS
The discussions in this section relate to the financial results pertaining to the year ended March 31,2022 prepared in accordance with the Indian Accounting Standards prescribed under section 133 of the Companies Act. 2013, read with the Companies ( Indian Accounting Standards ) Rules, as amended from time to time.
Significant Accounting policies used in the preparation of the financial Statement are disclosed in the notes to financial Statements.
The following table gives as overview of the financial result of the Company: (F in lakhs)
Particulars | 2021-22 | 2020-21 |
Income from Operations | ||
Other Income | 155.66 | 168.98 |
Profit/ (Loss) before interest & depreciation | 44.29 | 59.09 |
Less Interest | 0.16 | 0.16 |
Gross Profit/ (Loss) | 44.13 | 58.93 |
Depreciation & amortization expense | 13.74 | 15.74 |
Profit/ (Loss) Before Tax | 30.39 | 43.19 |
Provision For Taxation (including deferred tax) | 7.90 | 10.95 |
Net Profit/ (Loss) after Tax from continuing opreations | 22.49 | 32.24 |
Profit / (Loss) from discontinued operations | ||
Profit / (Loss) for the year | 22.49 | 32.24 |
KEY FINANCIAL RATIOS
The details of key financial ratios and changes compared to previous financial year are provided in note no. 42 to the financial statements.
HUMAN RESOURCE DEVELOPMENT AND INDUSTRIAL RELATIONS
The human resources development function of the Company is guided by a strong set of values and policies. Your company maintains a work environment that is free from any harassment.
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www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Copyright © IIFL Securities Ltd. All rights Reserved.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.