jaybharat fabrics mills ltd Management discussions

JAYBHARAT FABRICS MILLS LIMITED ANNUAL REPORT 2004-2005 MANAGEMENT DISCUSSION AND ANALYSIS OPERATIONS The turnover and other receipts of the Company for the Year under review has resulted to Rs. 7.51 Crores as compared to Rs. 1.5 Crores for the Previous year. The (Loss) after interest, depreciation and taxation was Rs. (130.50) sacs as compared to Rs. (100.181 lacs during the previous year. The market was continuously in bad shape, however company tired its level best to earn profit and started some trading activities also. The company expects that the market should improve in the current year as well as in the years to come. INDUSTRIAL RELATIONS The relations between the employees and the management continued to remain cordial during the year under review. The Directors hereby place on record their appreciation for the efficient and loyal services rendered by the employees of the Company at all levels. REFERENCE TO THE BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION (BIFR) The Company has made a reference to the Board for Industrial and Financial Reconstruction (BIFR) and BIFR vide its order No. 3(J-7) BC/2001 dated 1st June, 2001, had registered the reference under sub-section (1) of section 15 of the Sick Industrial Companies (Special Provisions ) Act, 1985. as Case No. 240/2001, However the BIFR considered the said reference as non maintainable stating that the writting off an amount of Rs.473 lacs due from a body corporate cannot be taken into account for deciding sickness of the company hence the net worth of the company has not fully eroded as on 31-03-2001. The Company has already filed suit against the said body corporate for recovery of outstanding dues. The net worth of the company is continuously fully eroded as on 31-3-2003 also, even after considering the reversal of said disallowance of Rs.473 lakhs therefore a reference is again filed u/s 15(1), of the SIC (SP) Act, 1985, which has been registered with BIFR vide its order No. F 30(3) BC/2003 dated 9th July, 2003 registered as case No. 271 /2003, in view of the said reference, the Company has been declared sick by the Honourable BIFR and the company is in the process of submitting a rehabilition scheme to Operating Agency IDBI.