sarda information technology ltd Directors report

SARDA INFORMATION TECHNOLOGY LIMITED ANNUAL REPORT 2001-2002 DIRECTORS REPORT To, The Members, Your Directors have pleasure in presenting the Eighth Annual Report and Audited statement of Accounts of the Company for the year ending on 31st March 2002. 2. Dividend In view of the losses incurred by the company, no dividend is declared. 3. Business Prospects. The companys performance received a solid setback during the year under review. Due to the continuing recession in the overall industrial scenario, your company did not get any new orders. Also the business of your company with other garment companies for manufacturing their garments has abruptly stopped by them. As a result, the company incurred heavy losses in the 2nd consecutive year, and the company has been a sick industrial company as defined under the Sick Companies (Special Provision) Act. 1985. The recessionary market conditions followed by tough competition faced by your company in particular and the Industry in general are the contributory factors for the situation. The management is trying its level best to obtain new business contracts with other renowned companies and also achieve the normalcy as early as possible and it is hoped that the year under consideration would fetch the expected results. 4. Directors responsibility Statement As required by sub-section (2AA) of the section 217 of the Companies Act., 1956, directors state. a) That in the preparation of annual accounts, the applicable accounting standards have been followed along with proper explanation relating to material departures. b) That the directors have selected such accounting policies and applied them consistently and made judgments and estimates that are 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 of the profit or loss of the company for the period. c) That the directors have 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. d) That the annual accounts have been prepared on a ongoing concern basis. 5. Statutory disclosures. a) Your company is not having any subsidiary company b) None of the employees of the Company received remuneration during the year as provided under, section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of employees) Rules, 1975, as amended. c) Particulars regarding technology absorption, conservation of energy and foreign exchange earning and outgo required under section 217 (1) (e) of the Companies Act, 1956 and Companies (Disclosure of Particulars in the report of board of directors) Rules, 1988 have been attached to the Directors Report. d) A Cash Flow statement for the year 2001-02 is attached to the Balance Sheet. e) Directors Responsibility Statement as required by section 217 (2AA) of the Companies act, 1956 appears in para 4 f) A certificate from the auditors of the company regarding compliance of conditions of Corporate Governance is annexed to the report 6. Corporate Governance Pursuant to clause 49 of the listing agreement with stock exchanges, a separate section titled Corporate Governance has been included in this annual report. 7. Auditors. You are requested to appoint auditors for the period from the conclusion the ensuing annual general meeting and fix their remuneration. 8. Auditors Report. The report is self-explanatory. 9. Industrial Relations. The relations with the staff and workmen continued to be peaceful and cordial. 10. Acknowledgements. The board is thankful to the employees of the company, shareholders and bankers for extending the co-operation throughout the year. On behalf of the Board of Directors. sd/- Madhusudan Z Sarda (Managing Director) Regd. Office.: 45-50, Industrial Estate, Nagar-Pune Road, Ahmednagar, 414 005 Place: Ahmednagar. Date: 06/05/2002 Annexure to the Directors Report Annexure : 1 PARTICULARS REQUIRED UNDER THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF THE BOARD OF DIRECTORS) RULES, 1998 Conservation of Energy. a) Energy conservation measures taken: Proper up-keep and maintenance of machinery. b) Additional investment and proposals: Nil c) Impact of above measures: Cannot be quantified d) Total energy consumption and energy consumption per unit of production. Form B Form of disclosure of particulars with respect to Technology absorption for 2001-2002 1. Specific areas in which Research and Development carried out by the company. The company is engaged in carrying research activities in the plant throughout the year so as to achieve automation and cost reduction. 2. Benefits Derived. - Cannot be quantified. 3. Future Plan of Action. a) No specific program has been made. b) Expenditure on R&D cannot be quantified. 4. Foreign Exchange Earning & Outgo a) Earnings - Nil. b) Outgo - Nil Regd Office: For and on behalf of the Board of Directors. 45-50, Industrial Estate, Nagar-Pune Road, Ahmednagar, 414 005 sd/- Place: Ahmednagar Madhusudan Z Sarda Date: 06/05/2002 (Managing Director) MANAGEMENTS DISCUSSIONS AND ANALYSIS ON FINANCIAL CONDITIONS AND OPERATIONAL RESULTS. 1. Basis of preparation of financial statements: These are prepared in taking into account the requirements of the Companies Act., 1956 and Indian GAAP 2. Operations: Your company is engaged in manufacture of ready-made garments and also in information technology business. The present business faces risks from various fronts like financing, competition, recession and technology. The inflationary trends have resulted in negative margins. Further growing competition, recession and levies have halved the business during the year. 3. Internal control systems and their adequacy. :There is an adequate internal control system for all activities and operations. The audit committee is taking the cognizance of this aspect. 4. Financial Performance.: Please see the Directors Report & Audited Accounts 5. Taxes : There are no taxable profits. 6. Forward Locking : Though the operational results for the year are unsatisfactory, the Directors look to the future as promising one. Tile expansion of capacity at appropriate times, wide spread marketing set-up, return to the shareholders, cost control and reduction measures coupled with maximum efficiency and minimum wastage are the aims for the future.