The directors have pleasure in presenting their Fourteenth annual
report and the audited statement of accounts for the year ended on 31st
March, 2007 together with the auditors report thereon.
The summarized financial results for year end 31st March 2006 are as
Amount in Rupees
Particulars 2006-07 2005-06
Sales and other income 1101230 5687959
Total expenditure 10043396 5650316
Profit (+) / loss (-) after interest
but before depreciation & taxation 968905 37643
Depreciation 897298 1006537
Taxation 000 000
Net profit (+)/loss (-) 71607 (968894)
In view of inadequate profits directors do not recommend any dividend
for the year ended 31 st March 2007..
The company continued concentration on the activity of sale of fabrics
The turn over during the year increased form Rs.50.67 Lacs to Rs.
107.30 Lacs. The company came out of losses and made marginal profit of
MANAGEMENT DISCUSSION AND ANALYSIS.
(a) Industry Structure and Developments :- Company is a Textile Company
(b) Opportunities and Threats :- The textile industry provides ample
opportunities in domestic and as well as export market However the
uncertainty of raw material prices and government policies are
detrimental to growth and profitability .
(c) Segmentwise or productwise Proformance ;- Company operates in
single segments i.e. Textile.
(d) Outlook :- The Company has viped off major secured loan and
proposes to install fresh manufacturing facilities.
(e) Risks & Concerns :- .Company do not foresee any such risk in near
future, which will hamper the activities.
(f) Internal control systems and their adequacy :- Company is in the
process of implementing various softwares for better control.
(g) Human Resources Mamagement Initiatives:- The management is keenly
interested this field. All the efforts are made to rationalize its
manpower and make effective use of the same.
BOARD OF DIRECTORS:
During the year Mr.Chetan Parekh was as directors in meeting of Board
of Directors held on 11.01.2007.lt is proposed to appoint Mr. Chetan
Parekh as director at Annual General Meeting.
M/s. Adil Aibada and Associates, Chartered Accountants, retire at this
Annual General Meeting and being eligible offer themselves for
reappointment. Your Company has received a letter from them to the
effect that their reappointment, if made, will be in accordance with
the provisions of Section 224(1B) of the Companies Act, 1956. The Board
of directors commend their reappointment.
Your Company has not accepted any deposits from public.
Certificate of the company secretary regarding compliance of the
conditions of Corporate Governance as stipulated in clause 49 of the
Listing Agreement with stock exchange, is enclosed..
STATUTORY INFORMATION :
(i) Information under section 217 (1) (e) of the Companies Act, 1956
read with the companies (Disclosure of particulars in the Report of the
Board of Directors) Rules, 1988:-
A. CONSERVATION OF ENERGY
a) Energy conversation measures taken: None at present
b) Additional investment and proposals, if any, being implemented for
reduction of consumption of energy: There are no proposals.
c) Impact of measures at (a) & (b) above for reduction of energy
consumption and consequent impact on the cost of production of goods:
Does not arise.
d) Total energy consumption and energy consumption per unit of
production as per FormA to annexure in respect of industries
specified in the schedule thereto: Not Applicable.
B. TECHNOLOGY ABSORPTION
Research & Development (R & D)
1. Specific area in which R&D carried by the company: None at Present
2. Benefits derived as a result of the above R&D: Does not arise.
3. Future plan of action: At present it is not under consideration
4. Expenditure on R & D: Nil
Technology absorption, adaptation and innovation:
1. Efforts being made towards technology absorption, adaptation and
2. Benefits derived as a result of the above efforts e.g. Product
improvement cost, reduction, product development, import substitution
etc. : None
3. Imported technology : Not applicable as technology has not been
C. FOREIGN EXCHANGE EARNING AND OUTGO:
Earning: Rs.Nil Outgo : Rs. NIL
INFORMATION UNDER SECTION 217 (2A) OF THE COMPANIES ACT, 1956 READ WITH
THE COMPANIES (PARTICULARS OF EMPLOYEES) RULES 1975 AS AMENDED UP TO
The company do not have any employee drawing salary in excess of limits
prescribed under section 217 (2a) of the companies act, 1956 read with
the companies (particulars of employees) rules 1975 the particulars
should be treated as nil
DIRECTORS RESPONSIBILITY STATEMENT.
Your Directors confirm that:
(i) In the preparation of Annual Accounts, the applicable accounting
standards had been followed along with proper explanation relating to
(ii) 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 financial year and of the loss of the
company for the year.
(iii) The Directors has 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
(iv) The Directors had prepared the accounts on going concern basis.
The industrial relations continued to be cordial during the year under
The Directors express their sincere thanks to the employees, customers,
suppliers, companys bankers and members of the company for their
Place : Silvassa By Order of the Board of Directors
SHAILESH J. PAREKH
Date :-26.06.2007, CHETAN S. PAREKH