Garlon Polyfab Industries Ltd Management Discussions

GARLON POLYFAB INDUSTRIES LIMITED ANNUAL REPORT 2007-2008 MANAGEMENT DISCUSSION AND ANALYSIS 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. 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.