The Directors are submitting their 16th Annual Report alongwith
Audited Statement of Accounts for the period ended on 30th September,
1. FINANCIAL HIGHLIGHTS
(Current Year) (Previous Year)
NET SALES (Net of Returns) 182000.00 16344380.08
PROFIT/(LOSS) FOR THE YEAR (351586.27) (13313477.27)
(BEFORE DEPRECIATION & INTEREST)
PRIOR PERIOD ADJUSTMENT (129240.35) (96361.40)
INTEREST 37077.86 439454.39
DEPRECIATION 4117944.67 8368169.13
Impairment Loss NIL 2881304.95
NET PROFIT / (LOSS) FOR THE YEAR (4635849.15) 25798955.38
(Includes prior period provisions
of Liquidated damages & penal
interest of IDBI)
Due to continues acute liquidity crisis being faced by the Company in
the last few Financial years the Company could not deliver the goods at
its best. The Company has incurred a net Loss of Rs. 46.50 Lacs as
against the net loss of Rs. 256 lacs in the previous year. It was
attributed to the number of factors like lack of working capital, the
fierce competition with the unorganized sector, the slump in demand and
recessional depressive economic conditions prevailing in the Market
which have continued to bring the profit margin under pressure. Inspite
of the continuing recessionary conditions the Company is quite hopeful
of making a turn around in a time to come.
All the Properties of the Company including its buildings, Plant &
Machinery and stocks are adequately insured
4. BOARD OF DIRECTORS
In accordance with the provisions of the Companies Act, 1956 and the
Articles Of Association of the Company Mrs.Pramjit Sethi, Director who
will be retiring by rotation, being eligible offers himself for re-
Brief resume of the Director seeking re-appointment at this Annual
Genearal Meeting, Nature of his expertise and other details as
stipulated under Clause 49 of the Listing Agreement entered into with
the Stock Exchanges are given in the Annexure to the Notice Convening
the 16th Annual General Meeting.
5. Audit Comm ittee
The Audit Committee has been Functioning since January 2000 and the
scope of the committee meets the requirements of the Cause 49 of the
Listing Agreement with the Stock Exchange and Section 292A of the
Compnaies Act 1956.
6. CORPORATE GOVERNANCE REPORT
Your Company has implemented the Corporate Governance Practice set out
by the Securities Board of India (SEBI) and as set out in Clause 49 of
the Listing Agreement entered into with the Stock Exchanges alongwith
the Auditors Certificate (Practising Company Secretary) on its
Compliance by the Company is included in this Annual Report.
7. DIRECTORS RESPONSIBILITY STATEMENT PURSUANT TO SECTION 217(2AA) OF
THE COMPANIES ACT, 1956.
On the basis of the compliance certificate received from the concerned
executive of the Company, subject to the disclosures in the Annual
Accounts and also on the basis of the discussions with the Statutory
Auditors of the Company from time to time Your directors hereby
i) that in the preparation of annual accounts, the applicable
accounting standards had been followed along with proper explanation
relating to material departures;
ii) that the directors had 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 that period.
that the directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the 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
9. FIXED DEPOSITS:
During the year under review the Company has not accepted/renewed, any
Fixed Deposits with in the meaning of Section 58 A of the Companies
10. LISTING ON STOCK EXCHANGE
The Companies shares are listied on Mumbai Stock Exchange .
11. INTERNAL CONTROL SYSTEMS
The Company has an effective system of accounting and administrative
controls which ensure that all asstes of the company are safe guarded
and protected against loss from unauthorized use or disposition. The
Company has a well defined organizational structure with clear
functional authority limits for the approval of all the transactions.
The company has a strong reporting system , which evaluates and
forewarns the management on issues related to compliance . The
performance is regularly reviewd by the Board of Directors o ensure
that it is in keeping with the overall corporate policy and in line
with the Companies objectives.
M/s V.K. Dhingra & Co., Chartered Accountants, the Auditors of the
Company hold office until the conclusion of ensuing Annual General
Meeting and being eligible offer themselves for re-appointment. The
necessary certificate as required u/s 224 (2B) of the Companies Act,
1956 has been received from the above named auditors.
14. AUDITORS'' REPORT AND NOTES ON ACCOUNTS
Comments on the Auditors'' Observations:
a. Reply to point no. 3 f (i) of the Auditors Report
The Company obtains the confirmations in ordinary course of business
from time to time and no major variations are found.
b. Reply to point no. 3 f (ii) of the Auditors Report
The Company manufacture Shoe Soles and styles and forms of the soles
depends upon the style of the Shoes and styles of the shoes changes
from time to time due to the change in fashion. In this respect some
sloes become out of fashion, which leads to the non use of certain
moulds. It has also happened in past that some moulds were re used
again. Now sometimes it becomes very difficult to assess or value the
impairment loss of the Moulds on regular basis. As the Auditors have
pointed out the company is making all the efforts to calculate on
regular basis the impairment loss.
15. PARTICULARS OF EMPLOYEES U/S 217 (2A) OF THE COMPANIES ACT, 1956.
During the year under review, no employee whether employed for the
whole year or part of the year, was drawing remuneration exceeding the
limits as laid down under section 217(2A) of the Companies Act, 1956.
Therefore, the information as required under Section 217(2A) of the
Companies Act, 1956 read with the Companies (Particulars of Employees)
Rules, 1975 is not required to be given.
The industrial relations scenario continued to be stable during the
year under review. The Company has been taking various initiatives for
the HR development and this continue in this ensuing year as well.
17. PARTICULARS OF ENERGY CONSERVATION, TECHNOLOGY ABSORPTION &
FOREIGN EXCHANGE EARNINGS AND OUT-GO.
The information pertaining to the captioned areas are briefed in the
ANNEXURE to this report.
18. CEO/CFO Certificate
As required by the Clause 49 of the Listing Agreement, the CEO/CFO
certificate on the accounts is attached and forms part of the Annual
Your Directors wish to place on record their appreciation for the
valued Co-operation and assistance extended by various Government
Agencies, Bankers of the Company, IDBI, loyal & dynamic executive staff
and other workers of the Company. The Board also takes this opportunity
to express its deep gratitude for the continuous support received from
the shareholders of the Company.
For and on behalf of the Board
Place : New Delhi (HARPREET SINGH SETHI)
Date : 2ND December, 2010. Chairman & Whole Time Director