electric control gear india ltd Directors report

ELECTRIC CONTROL GEAR (INDIA) LIMITED ANNUAL REPORT 2001-2002 DIRECTORS REPORT TO, The Members, Your Directors have pleasure in presenting the 24th Annual Report along with the Audited Accounts of the Company for the period ended 30th September, 2002. FINANCIAL RESULTS Rs. in lacs Current Previous Year ended Year ended 30/09/2002 30/09/2001 PROFIT/(LOSS) BEFORE TAX (12.32) (10.46) Less : Depreciation 0.77 1.29 Net Profit (Loss) after tax (11.55) (9.17) Add Balance from Previous Year (197.04) (177.87) Bal. Carried to Balance Sheet (198.59) (187.04) DIVIDEND: The Directors regret their inability to propose any dividend in view of the Loss incurred by the Company. FIXED DEPOSIT: The Company has not accepted any deposit to which the provisions of Sec. 58-A of the Companies Act, 1956 are applicable. INFORMATION AS PER SECTION 217(1) (E) OF THE COMPANIES ACT 1956: The Company has no activities during the year under review and hence there is no information is required to be given relating to conservation of energy or technology absorption. There was neither inflow nor outgo of foreign exchange during the period under review. PARTICULARS REGARDING EMPLOYEES: There is no employee who is in receipt of remuneration exceeding the limit specified under Section 217 (2) (a) of the Companies Act 1956, read with the Companies (Particulars of Employees) Rules, 1975, as amended. BUSINESS OPERATION & FUTURE PROSPECTS: In view of the sluggish conditions prevailing in the economy as a whole and on account of heavy loss incurred on sale of shares of Elcon - Clipsal (1) ltd., your Company has not taken any decision towards commencing any manufacturing operation. Moreover, the inter corporate loan of Rs. 78.28 Lacs given by the Company to M/s. Piramal Financial Services Limited is not recoverable since the liquidator has been appointed by the Hon. High Court. BOARD OF DIRECTORS: In accordance with provisions of Section 256 of the Companies Act, 1956, Shri Rajesh I. Shah retires by rotation and being eligible offers himself for re-appointment. DEMAT STATUS: The Companys Shares were admitted to compulsory demat. The demat activation number allotted to the Company is ISIN INE 458 C01018. Presently shares are held in electronic and physical mode (36.46% of shares in demat mode). AUDITORS: M/S.Mehta Lodha & Co., Chartered Accountants, Ahmedabad retire at the conclusion of this ensuing Annual General Meeting. The Company has received a certificate under Section 224 (1)(B) of the Companies Act, 1956 to the effect that their re-appointment, if made, will be in accordance to the limit specified in the said Section. You are requested to consider their re-appointment as Auditors of the Company for the Current Year. DIRECTORS RESPONSIBILITY STATEMENT: Pursuant to the requirement under Section 217 (2AA) of the Companies Act, 1956 with respect to Directors Responsibilities Statement, it is hereby confirmed: (i) that in the preparation of the Annual Accounts for the Financial Year ended 30th September 2002, the applicable accounting standards had been followed along with proper explanation relating to material departures; (ii) that the Directors had selected such accounting policies and applied them consistently and made judgements and estimates that were reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the Financial Year and of the Profit or Loss of the Company for the year under review; (iii) that the Directors had taken proper and sufficient care 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) that the Directors had prepared the accounts for the Financial Year ended 30th September 2002, on a going concern basis. For, and on behalf of the Board of Directors Sd/- Place: Ahmedabad Rameshchandra R. Chaudhary Date : 01/11/2002 Chairman