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MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT :
The company has effected sales turnover of Rs 57,66,292 as against Rs 26,03,26,588 last year. This year turnover is only by way of trading of cotton yarns and the income generated out of the above was utilized for the day -to-day administrative expenses. Last year some manufacturing units (since sold out by the Lenders) ran for part of the year. Hence, the turnover was more last year.
OPERATION OF UNITS :
Since the Lenders have sold the entire assets of the company for the non-payment of loan, there was no manufacturing operation taking place in the company during the year under review. Even after the sale proceeds of the entire assets have been adjusted by the lenders against the loan due, still the company owes substantieal amount as on 31-3-2017. Including interest accrued but not paid. The company has no assets on hand. to sell and make the payment for the balance loan amount. In the meantime, the Promoters are negotiating with the Lenders for One Time Settlement, as lenders had assured to the Management that if we co-operate for asset sale and after all the assets are sold, the lenders might agree for a one time settlement. Till then, the company is liable to function just to comply with the statutory obligations with the Registrar of Companies, Stock Exchanges etc. Hence, the company has engaged few staffs to carry out the above work.
Since, the entire manufacturing activities have been suspended due to sale of all the units of the company by the Lenders , time being the company is looking forward to carryout trading activities, which Management is finding very difficult and unsustainable. As Companys strength was manufacturing only, and now all the units were sold by the lenders, the Management is straguling to meet out day - to - day expenses. Hence very bleak out look.
OPPORTUNITIES AND THREATS
Since, the question of revival of the company is ruled out there will not be any opportunities and threats to be forecast.
The Report about finance is elaborately given in the Directors Report to the Shareholders which is appended in the Annual Report.
FINANCIAL PERFORMANCE AND ANALYSIS
|Particulars||2016 -17||2015 -16||Change Increase (+) Decrease(-)||%|
|Gross Revenue||2,39,03,557||26,04,74,754||(23,65,71,197)||- 90.82|
|Net Profit /Loss before Tax||(53,02,382)||-38,80,44,586||38,27,42,204||-98.63|
During the year under review, the Company has earned profit of Rs 53,34,503 /-
|S.No||Demand Received from||Amount||Reason|
|Joint Director General of Foreign Trade, Coimbatore||55,90,28,760||Non-fulfillment of Export Obligation in respect of 45 Licenses issued to the company|
|Assistant Commissioner of Customs, Chennai||1,53,77,000||Non-fulfillment of Export Obligation in respect of 6 censes issued to the company|
|Assistant Commissioner of Income Tax, Corporate Circle -2.The Commissioner of Income Tax, Appeal has vide his Order dated 28-9-2016 upheld the Penalty. Against this, the Company has preferred Appeal before the Tribunal, Chennai . The order is awaited.||7,30,48,153||Penalty levied u/s Section 271(1) (c) of the Income Tax relating to the Assessment Year 2012-13. The Company has preferred an appeal before the Income Tax Appellate Tribunal chennai against the levy of penalty, which has also dismissed the above appeal vide is order dated 26.5.2017 and confirmed the penalty.|
|Deputy Commissioner of Income Tax, TDS Circle||45,69,649||TDS Default|
|The Assistant Commissioner of Commercial Taxes, Mettupalayam Road Circle, Coimbatore||20,06,535||Short levy of AST for the Assessment year 1999-2000|
|Income Tax Department||5,85,000||Department have preferred Appeal before I.T.A.T, Chennai against the order of C.I.T Appeal relating to the Assessment Year 2004-05|
|Income Tax Department||1,25,000||The Department have filed an Appeal before the Honble High Court , Chennai against Companys stand regarding sec 80 (1A)|
|Maharashtra Sales Tax Department||32,46,000||Issues representing reversal of Input Vat Credit relating to the Assessment Year 2005-06 and 2006-07|
|M/s Think Capital||93,86,000||Winding up petition filed by them for non-compliance of certain commitments.|
|M/s Vijay Fabrics||1,18,000||M/s Vijay Fabrics , Erode have obtained Decree against the company and filed Execution Petition before the Sub-Court, Perundurai|
|The company has sold its vacant land at Kalappatty for Rs 1.62 crores. The coowners of erstwhile sellers have filed a case for their shares in O.S.J Court, Coimbatore|
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY.
The Company has appointed M/s M.Gangadharan & Co as Statutory Auditors of the Company and they audit the adequacy and the effectiveness of the internal controls prescribed by the Management and wherever necessary suggests improvements.
The Audit Committee of the Board of Directors periodically review the financial positions, audit plans, internal audit reports adequacy of internal controls and risk management.
The Industrial Relation continued to be harmonious with the available few staffs.
|By Order of the Board|
|For GANGOTRI TEXTILES LIMITED|
|MANOJ KUMAR TIBREWAL|
|Place : Coimbatore||MOHANLAL TIBREWAL|
|Date : 13.5.2017||EXECUTIVE DIRECTOR|