kedia chemical industries ltd Directors report

KEDIA CHEMICALS INDUSTRIES LIMITED ANNUAL REPORT 2005-2006 DIRECTORS REPORT The Directors hereby present the 30th Annual Report together with the Audited Statement of Accounts for the period ended 30th June, 2006. 1. FINANCIAL RESULTS: (Rs. in Lakhs) Particulars 2005-2006 2004-2005 (12 months) (15 months) Profit (Loss) before Depreciation 6.41 465.64 and Tax Less: Depreciation 0.53 32.16 Profit (Loss) before Tax but after 5.88 433.47 Depreciation: Add extra Ordinary Items - - Loss on Sale of Assets 178.83 - - Less: Profit period adjustments - (178.83) (351.89) Add: Prior period adjustments (9.58) (30.89) Add: Loss brought from the (1171.34) (1222.03) previous year Balance carried to Balance Sheet (1353.87) (1171.34) 2. DIVIDEND: As the accumulated losses have resulted in a net loss for the year under review, no Dividend is being recommended. 3. OPERATION & FUTURE STRATEGY: During the year Company has disposed off its plants and machinery along with the land and building and therefore suspended its manufacturing activities. The Company is in the process of venturing in to New Business Avenue. During the year the Company has entered into OTS with Bank. The Management during the year has decided to suspend its business activities and shift its manufacturing activities towards backward area to save the cost and avail benefit under various scheme of the Government. It has affected concept of Going Concern. 4. PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING AND OUTGO: During the year, as there was no manufacturing activities this is not applicable. 5. PARTICULARS OF EMPLOYEES: The Company has no employees during the year; hence Section 217 (2A) of the company Act, 1956 is not applicable 6. DIRECTORS: During the year under review, there has been no change in the Board of Directors. 8. DIRECTORS RESPONSIBILITY STATEMENT: To the best of our knowledge and belief and according to the information and explanation obtained by us, we directors make the following statement in terms of Section 217 (2AA) of the Companies Act, 1956. a. Preparation of the Annual accounts for the period ended 30th June, 2006 the applicable accounting standards have been followed along with proper explanation relating to the material departures, if any. b. That such accounting policies as mentioned in Schedule P of the Annual Accounts have been selected and supplied consistently and judgements and estimates that are reasonable and prudent made so as to give a true and fair view of the state of affairs of the Company as the end of the financial period ended 30th June, 2006 and of the loss of your Company for that period.. c. That proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with provision of the Companies Act, 1956 for safe guarding the assets of your company and for preventing and detecting fraud and other irregularities. d. That the Annual Accounts for the period ended 30th June, 2006 has been prepared on a going concern basis. 9. FIXED DEPOSITS: Fixed Deposits from the Public and Shareholders stood at Rs . Nil at the end of period ended. 10. INSURANCE: As required under Public Liability Insurance Act, 1991 the Company has taken necessary insurance cover. 11. CORPORATE GOVERNANCE:- A separate Report on Corporate Governance is produced as a part of this Annual Report along with the Auditors Statement on its compliance , as prescribed under the amended Listing Agreement of the Stock Exchanges with which your company is listed. 12. AUDITORS: The Auditors who retires at the ensuing Annual General Meeting of the Company. The Board recommends the re-appointment of Auditors to hold this Annual General Meeting till the conclusion of next Annual General Meeting of the Company. Pushpkant M. Kedia Chairman & Managing Director Place: Mumbai Date : 2nd December, 2006 ANNEXURE A Particulars pursuant to Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the report of the Board of Directors) Rule, 1988 and forming part of the Directors Report for the period ended 30th June, 2006 1. Conservation of Energy: NIL (The company has suspended his manufacturing activities during the period) 2) Power of Fuel Consumption: Electricity purchased Units Total Amount Rate / per unit Consumption per unit of production: Power and Fuel Consumption per unit of production in Rs. NIL power Rs. NIL The records and the books maintained by the company are in accordance with the provisions of the Companies Act, 1956. 1. Technology Absorption : Not Applicable 2. Foreign Exchange earnings and outgo : NIL