varun polymol organics ltd Directors report

VARUN POLYMOL ORGANICS LIMITED ANNUAL REPORT 2002-2003 DIRECTORS REPORT TO THE MEMBERS Your Directors present Sixteenth Annual Report and Audited Statement of Accounts of the Company for the year ended 31st March, 2003. 1. FINANCIAL RESULTS Current Previous Year Year 1.4.2002 to 1.4.2001 to 31.3.2003 31.3.2002 (Rs. in Lakhs) (Rs. in Lakhs) Profit/(LOSS) for the year (2.96) (6.50) before depreciation Less : Depreciation for the year (6.06) (6.06) Profit/(Loss) after depreciation (9.02) (12.56) Your Company has not recorded any income during the year. Your Company has incurred a loss of Rs. 9.02 lace after charging depreciation of Rs. 6.06 lacs as against the previous years net loss of Rs. 12.56 Lacs. 2. OPERATIONS During the year under review The State Bank of India (SBI), operating agency, has forwarded the offers received from parties for takeover of the management of the company to BIFR. BIFRs response is waited. 3. EXPANSION CAPITAL PROJECTS Since the Company has become sick industrial undertaking and as a consequence of suspension of operation at Companys plant at Mahad, question of Expansion/Capital Projects does not arises. 4. PUBLIC DEPOSITS During the year under report the company has not accepted/ renewed any Fixed Deposits under the Company (Acceptance of Deposits) Rules, 1975 from the Shareholders and public. As on 31.3.2003 and till the date of this report 8 deposits amounting to Rs. 34,000/- have matured but had net been claimed. The company has written to these depositors requesting them to forward the duly discharged receipts far repayment of the deposits. 5. INDUSTRIAL RELATIONS During the year the Lockout in the factory continued. The lockout had been declared with a view to protect the assets in the factory after labour unrest commenced. The Commissioner of Labour is reviewing the progress of BIFR every quarter as directed by Bombay High Court. 6. DIRECTORS San. N.P. Deshmukh was appointed as wholetime Director for a period of 5 years from 31st March, 1998 and as such ceased to be a wholetime Director to the company from tat March, 2003. However, she continues to be a Director of the company, liable to retire by rotation. Under Article 166 of the Articles of Association of the Company Smt. N.P. Deshmukh and Dr. R.S. Shah retire by rotation and being eligible offer themselves for re appointment. 7. DIRECTORS RESPONSIBILITY STATEMENT Pursuant to the retirement under Section 217 (2AA) of the Companies Act, 1956 with respect to Directors Responsibility Statement, it is hereby confirmed i) that in the preparation of annual accounts far the financial year ended 31st March, 2003, the applicable accounting standards have 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 tan view of the state of affairs of the Company al the end of the financial yea and of the profit and loss of the Company for the year under review. iii) that the Directors have 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 have prepared the accounts for the financial year ended 31st March, 2003 on a going concern bases. 8. PARTICULARS OF EMPLOYEES There were no employees covered under Section 217 (2A) to the Companies Act, 1956, read with the Company (Particulars of Employees) Rules 1975, who we receipt of remuneration in excess of the prescribed limits. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO. Since the Company has suspended its activities and has been declared a sick industrial unit, no particulars under this heading are available. 10. AUDITORS Members are requested to appoint Auditors for the current year and fix their remuneration. M/s. Thanawala & Co,, Chartered Accountants, retire at the conclusion of the ensuing Annual General Meeting and being eligible, offer themselves for reappointment. The Auditors have furnished to the Company the requisite certificate under section 224 (1B) at the Companies Act, 1956. 11. ACKNOWLEDGEMENT Your Directors wish to place on record their appreciation for the valuable assistance and guidance given to them by the State Bank of India. Your Board also acknowledges valuable assistance given to them by various Central and State Government Departments and Corporations. Finally a owe sincere gratitude to all shareholders for then support For and on behalf of the Board For VARUN POLYMOL ORGANICS LIMITED Sd/- Place : Mahad P.D. DESHMUKH Dated : 28.4 2003 Chairman & Managing Director Registered Office A-4, M.I.D.C., Mahad, Dist. Raigad, Maharashtra