pretto leather industries ltd Directors report

DIRECTOR

Your Directors have Pleasure in Presenting the Annual Report together with audited statement of accounts for the year ended 31^st March, 2013.

WORKING RESULTS		(Amount in Rs)
Particulars	31-3-2013	31-03-2012
Total Income	5042100	15496689
Depreciation	281473	268380
Profit(Loss) before Tax	(179936)	(3384667)
Provision for Tax-FBT	0	-7475
Profit (loss) after Tax	(179936)	(3377192)

OPERATIONS AND FUTURE PLANS

The operations for the year under review show a loss (after Tax) of Rs. 179936- ,

The Company has not been active for the past seven years due to a severe financial crisis, for the past three years the Company was in the process of gradually liquidating all debts with various Banks and Financial institutions. Your Directors are glad to report that during the year under review the Company has closed all loans and is a debt free company from this year. The entire amounts required for closing the debts was bought in by the directors and is reflected as unsecured loans in the Balance Sheet. The Directors feel that having addressed the issue of clearing the debts, it is appropriate time to start planning for the future. It is sincere intention of the Directors to bring value to the Shareholders. But the current economic environment being what it is we will have to choose our path with care and caution. ,

Your Directors are pleased to report that a study for the revival of the business is already commissioned and is underway. The assignment has been entrusted to a reputed consultancy organization who will examine the feasibility including the strategy.

Your Directors are also looking and examining other business options including acquisition of running businesses as well ,as other good viable opportunities where some value and synergies can be perceived. It is our Objective that we commence activities in manufacturing of shoes and consolidate the clients again. We would like to see that Company is en route to generating a healthy top line and bottom line.

DIVIDEND:

Since the Company could not generates any profits, management does not propose any dividend for the year 2013.

DIRECTORS

During the year under review Mrs. Namita Saxena has given Resignation from the Director/Promoter of the Company w.e.f 30/06/2012.

During the year under review

During the under review Shri Vinod Kumar Dhama, Director retire at the ensuring Annual General Meeting, and being eligible offers themselves for reappointment.

Mr. Dinesh Malik, Director retire at the ensuring Annual General Meeting, and being eligible offers themselves for reappointment.

DIRECTORS’ RESPONSIBILITY STATEMENT

Your Directors State:

i) that in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanations relating to material departure;

ii) that the Directors had selected such accounting policies and applied them consistently and made judgements and estimates that ate reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and the loss of the Company for the period;

iii) That the Directors had 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 had prepared the annual accounts on going concern basis.

FIXED DEPOSITS

Your company has neither invited nor accepted any Fixed deposits from the public during the financial year under review.

CORPORATE GOVERNANCE ABD COMPLIANCE CERTIFICATE:

Separate notes on Corporate Governance and Management Discussion and Analysis Report are set out as Annexure "A" and "B" respectively. A Certificate from the Auditor of the Company certify ing compliance conditions of Corporate Governance as stipulated under Clause 49 of the Listing Agreement is attached to this report.

LISTING AGREEMENTS REQUIREMENTS.

The securities of your company are listed at Bombay Stock Exchange.

BUY-BACK OF SHARES

PARTICULARS OF THE EMPLOYEES:

None of the employees employed during the year was in receipt of remuneration in excess of the Prescribed limit specified in section 217 (2A) of the Companies Act, 1956 Hence, furnishing of particulars under the Companies ( Particulars of Employees) 1975 does not arise.

AUDITORS

M/s I.P. PASRICHA & CO., Auditors of the Company retire at the ensuing Annual General Meeting. They have expressed their willingness for reappointment.

’CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION

During the year under review, there were no activities, which required heavy consumption of energy. However adequate measures have been taken to make sure that there is no wastage of energy. Since the requisite information with regard to the conservation of energy, technology absorption (Disclosures of Particulars in the report of Board of Directors) Rules is irrelevant/not applicable to the company during the year under review, the same are not reported.

FOREIGN EXCHANGE EARNINGS AND OUTGO:

The Company has no foreign exchange earnings and outgo during the Financial Year ended on 31^st March 2013.

ACKNOWLDGEMENTS

The Board of Directors wish to place on record their appreciation for the co-operation and support of the Company’s Bankers, its valued customers, employees and all other intermediaries concerned with the company’s business.

Your directors sincerely thank all members for supporting us during the difficult days. We look forward to your continued support and reiterate that we are determined to ensure that the plans are successfully implemented.

Place: Bareilly (U.P.)	For Pretto Leather Industries Limited
Date: 03.09.2013	Director