garlon polyfab industries ltd Directors report

GARLON POLYFAB INDUSTRIES LIMITED ANNUAL REPORT 2007-2008 DIRECTORS REPORT Your directors present herewith the Eighteenth Annual Report and Audited Statement of Accounts for the year ended 31st March, 2008. FINANCIAL RESULTS: (Rs. in lacs) Current year Current year ended 31.3.2008 ended 31.3.2007 Turnover Nil Nil Profit/(loss) before (2.00) (1.67) Interest & Depreciation Less: Interest & Financial Charges 28.99 28.95 Less: Depreciation 9.08 10.54 Profit/(Loss) before Tax (40.08) (41.46) Less: Provision for Taxation Nil Nil Net Profit/Loss) (411.08) - Add: Surplus/(Deficit) brought forward from previous year (1015.85) (974.82) Less: Previous year adjustment - - Surplus/(Deficit) carried to Balance Sheet (1055.95) (1055.95) OPERATIONS: The operation of the company remained suspended during the year and as result impact of the financial charge, due to the Institutions and banks the company has posted a loss of Rs 40.08 lacs. DIVIDEND: In view of the Losses your directors regret their inability to recommend any dividend for the year. INDUSTRIAL SICKNESS: Due to heavy losses incurred during the previous years the entire Net Worth of the company had ended on 31/10/2000 and your company had become a Sick Industrial Company in terms of Section 3(1) (O) of the Sick industrial Companies (Special Provisions) Act, 1985 (SICA). However the company has settled Its dues with State Bank of India. Necessary reference under section 15 of the SICA was made to the Bard for Industrial and Financial Reconstruction (BIFI) which is still pending. Further, U.P. Financial Corporation the main Secured Creditor of the company have already taken over the Physical Possession of the Unit i.e. at the Assets of the Company, located at Rania. Kanpur (Debat) on 28/6/2003 under Sec.13/4 of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act. The Assets of the company are still in possession of UPFC. lying unsold. LITIGATIONS: There have been no fresh litigations or orders against your company during the year. FIXED DEPOSITS: Your company has not accepted any deposits from the Public with in the meaning of Section 58-A of the Companies Act, 1956. DIRECTORS: Pursuant to the provisions of the Companies Act, 1956 read with Article 125 of the Articles of Association of the company Shri Vishal Garg, Director of the company, retires by rotation and being eligible offers themselves for reappointment. AUDITORS: M/s P.D. Agarwal & Co., Chartered Accountants, Kanpur retire at the forthcoming Annual General Meeting and being eligible, offer themselves for re-appointment. The observations made in the Auditors Report read with notes to the accounts are self explanatory and do not call for any further comments. PERSONNEL: Industrial relations continued to be cordial during the year under review. Since none of the employees of the company has in receipt of remuneration in excess of the limits specified, the particulars of employees a required under section 217 (2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rule, 1975 as amended are not required to be given. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO: As the Company had carried out only trial runs and no regular manufacturing activity was carried out during the year, hence, there is nothing to report pursuant to Section 217 (1) (e) of the Companies Act, 1956 read with companies (Disclosure of Particulars in the Reports of Board of Directors) Rules, 1988. DIRECTORS RESPONSIBILITY STATEMENT IN TERMS OF SECTION 217 2(AA) OF THE COMPANIES ACT, 1956: Your Directors have prepared financial statements in conformity with generally accepted accounting Principles so as to ensure that they give true and fair view of the state of affairs of the company at the end of the financial Year and the profit & loss of the company for the period. Your Directors hereby confirm that: (i) In the preparation of the financial statement applicable accounting standards have been followed. (ii) Appropriate accounting policies have been followed and applied consistently. (iii) All the books of accounts and statutory are registers have been properly maintained and proper and sufficient care has been taken for safeguarding all the assets and other interest of the company and preventing and detecting fraud and other irregularities. (iv) The Directors had prepared the Annual accounts on going concern basis. INFORMATION UNDER LISTING AGREEMENT: The Shares of the Company are listed at Ahmedabad, Delhi, Jaipur, Kanpur and Mumbai Stock Exchanges. The company, has not paid listing fee due to financial constraints, however provisions for the same have been made in the Books of accounts. ACKNOWLEDGEMENT: The Directors acknowledge with gratitude the assistance received by the company from Shareholders Employees and other. For and on Behalf of the Board D.N. GARG Chairman Place: Kanpur Date : 30th August, 2008.