dupont sportswear ltd Directors report

DUPONT SPORTSWEAR LIMITED ANNUAL REPORT 2000-2001 DIRECTORS REPORT Your Directors have the pleasure of presenting the Fifteenth Annual Report and the Audited Statement of Accounts for the year ended March 31, 2001. 1. BUSINESS OPERATIONS During the year under review, the Company focussed its attention to manufacture private labels and exports. However, the Company has not been able to fully utilize its capacity. As a result of which the Company has to incur heavy losses. The Company is in the process of finalising long-term contracts with reputed brands to utilize its capacity fully. It is expected that these contracts will be signed very shortly with this, the Company expects to turn the corner from the first quarter itself. The Share Capital and Reserves & Surplus of the Company as on 31st March 2001 was Rs.871.33 lacs and the accumulated losses increased to Rs.1149.44 lacs. Your company has become sick industrial company within the provisions of Section 3(1)(o) of The Sick Industrial Companies (Special Provisions Act, 1985 an therefore proposes to make application with the Board for Industrial Financial & Reconstruction (BIFR) to rehabilitate is operations. 2. DIVIDEND No dividend has been declared by the Directors in view of the inadequacy of profits during the year. 3. DIRECTORS Mr. Atul Dayal retires by rotation under Article 102 of the Articles of Association of the Company and being eligible, offers himself for re- appointment. During the year under review, Mr. Shishir Bajaj and Mr. S.C.Nagar resigned from the directorships of the company. The Board places on record their appreciation for the very valuable services rendered by them to the Company. 4. PROVIDENT FUND & ESIC ARREARS Due to the mismatch in cash flows, your Company was unable to deposit provident fund and ESIC dues for the part of the year under review within the prescribed time limit. The Company is in the process of negotiation with the concerned authority to seek suitable extended time period by which all the dues could be cleared. 5. AUDITORS REPORT The observations made in the Auditors Report have been duly dealt with in the Significant Accounting Policies and Notes forming part of the Accounts and they are self-explanatory. 6. AUDITORS M/s Lodha & Co., Chartered Accountants retire as the Auditors of the Company at the ensuing Annual General Meeting and are eligible for re- appointment. 7. DIRECTORS RESPONSIBILITY STATEMENT Your Directors further report that: (i) In the preparation of annual accounts, the applicable accounting standard have been followed and that there are no material departures: (ii) The accounting policies have been applied consistently, judgements and estimates that are reasonable and prudent have been made so as to give a true and fair view of the state of affairs of the company as at 31st March, 2001 and of the loss of the company for the year ended 31st March, 2001. (iii) Proper and sufficient care have been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act,1956 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities; (iv) The annual accounts have been prepared on a going concern basis. 8. CORPORATE GOVERNANCE Audit committee could not be constituted as required u/s 292A of the Companies Act 1956 due to the non-availability of the required numbers of non-executive directors. The company is taking effective steps to comply with the provision. 9. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO (i) Conservation of energy: Continuous efforts as always done in past is being made to find out better ways for effective utilization of energy. (ii) Technology Absorption: Your Company has not done any up gradation in its technology. (iii) Foreign Exchange Earnings & Outgo: The total foreign exchange earnings during the year has been Rs. 24.27 lacs from export and the foreign exchange outgo during the year has been Rs.6.54 lacs on account of travel and other expenditure. 10. PERSONNEL The particulars of employees as required under Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 form part of this report as Annexure. 11. GENERAL The Company is thankful to its bankers, the E.D.C. Goa and the employees of the Company for their continued co-operation during the period under review. For and on behalf of the board Ashok Jalan Mumbai, May 11, 2001 Chairman & Managing Director