suncity industries ltd Directors report

SUNCITY INDUSTRIES LIMITED ANNUAL REPORT 2003-2004 DIRECTORS REPORT To The members: Yours directors have pleasure in presenting the Sixteenth Annual Report together with the Audited Accounts of the company for the period ended on 31st March 2004. WORKING RESULT The Companys working result for the period under Report with comparative figure of the last years as under: (Rs. in Lacs) 2003-2004 2002-2003 Sales Trading 113.35 0.00 Other Income 5.60 2.84 Total 118.95 2.84 Profit after interest before depreciation (16.72) (10.31) Less: Depreciation 0.00 0.00 Profit before Tax (16.72) (10.31) Net Profit for the year (16.72) (10.31) Add: Surplus from previous year brought forward (1672.74) (1662.43) Balance carried over the Balance Sheet (1135.03) (1672.74) DIVIDEND Yours directors do not propose any dividend for the year ended on 31st March 2004. OPERATIONS Due to working capital constraints, the unit remained unoperational throughout the year. One-time settlement was done with IDBI and RIICO as full and final settlement of their entire dues against the payment of Rs.210.00 Lacs and Rs.43.35 Lacs respectively. In order to pay the above settlement amount the company has taken an advance of Rs.250.00 Lacs from M/s Design Crescendo. Jodhpur with the understanding to sale them the assets of the company after getting the title / charge released from the institutions. FIXED DEPOSIT The Company has not accepted any deposit within the meaning of Section 58A of the Companies Act, 1956. INFORMATION UNDER SECTION 217(1) (e) OF THE COMPANIES ACT, 1956 relating to the conservation of energy, technology, absorption etc. RESEARCH AND DEVELOPMENT No research and development activity took place as the unit was unoperational during the period. PARTICULARS OF EMPLOYEES Your company has NO employee of the category specified in section 217(2A) of the Companies Act, 1956 During the year. AUDITORS Companys. Statutory Auditors M/s Rajkumar Sanklecha & Co. Chartered Accountants, are retiring at the ensuring Sixteenth Annual General Meeting and the proposed to be re-appointed for the next year. Explanation on remarks given by the Auditors in their report 1. The Company has advanced to some parties or contractors for supply of material and services but the same could not be received /availed due to shut down of the plant. As the parities were given advances for supply of material/ services no interest can be charged as per normal business terms. 2. As the company has no, staff, the fixed assets register could not be updated. 3. The loans & advances are only to the suppliers and service provides and security deposit with Govt. Deptt. Such as electricity board, telephone deptt. etc. Hence no question charging any interest or any guarantee from them. 4. Company has no activity of sale of any product other then its own products and by products, hence need to maintain such records. 5. The notes on account as given in schedule 18 are self explanatory and required no further comments. DIRECTOR Shri Ashok Kumar Chhugani retires by rotation and being eligible offers himself for reappointment. DIRECTORS RESPONSIBILITY STATEMENT In the presentation of the annual Accounts, applicable Accounting Standards have been followed. i. The accounting policies are consistently applied and reasonable, prudent judgement and estimates are made so as to give a true and fair view of the state of affairs of the Company at the end of the Financial Year. ii. 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 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities. iii. That the Directors had prepared the Annual Accounts on a going concern basis, ACKNOWLEDGEMENT The Director would like to place on record their appreciation for the valuable co-operation extended to the Company b% the employees of the company. Departments of the Central and State Government RIICO, IDBI, State Bank of Bikaner & Jaipur, the customers and suppliers and other business associates for the smooth operation of the company. For and on Behalf of the Board Sd/- Date : 26.05.2004 GOVIND CHHUGANI Place : Jodhpur Managing Director