The Directors are pleased to present the Twenty Eighth Annual Report
together with the Audited Statements of Accounts for the year ended
31st March, 2012.
PARTICULARS As at 31-03-2012 As at 31-03-2011
(Rs. in Lacs) (Rs. in Lacs)
Sales & Other Incomes 36789.79 35973.12
Gross Profit before
Interest & Depreciation 693.03 1933.46
Less : Interest 1752.21 1978.00
Depreciation 671.17 2423.38 661.67 2639.67
Profit / (Loss) before
Tax (1730.35) (706.21)
Less : Provision for
Current Tax 0.00 0.00
Provision for Deferred
Tax 24.51 89.32
Provision for Fringe
Benefit Tax 0.00 (24.51) 0.00 (89.32)
Profit / (Loss) after
Taxation (1754.86) (795.53)
Add : Adjustments of
earlier years 0.00 (9.20)
Add : Surplus brought
forward from previous
years (2199.66) (1394.93)
Balance carried to
Balance Sheet (3954.52) (2199.66)
PERFORMANCE DURING THE YEAR :
The turnover of the Company during the year increase by 2.27 % at Rs.
36789.79 Lacs as compared to Rs. 35973.12 Lacs for the corresponding year
ended 31st March, 2011. The profit before Interest and Depreciation
worked out to Rs. 693.03 Lacs as against Profit of Rs. 1933.46 Lacs for the
year ended 31st March, 2011. The net profit/(Loss) derived by the
Company is Rs. (1754.86) Lacs.
Your Company has undergone continuous losses due to abnormal increase
in the price of crude oil, Power cost and adverse market conditions,
beyond the control of the management. As reported earlier, the Techno
-Economic Viability Study conducted /Completed in the month of November
2011 and the same has endorsed the long term viability of the Company
and our management expect the support of all bankers of the Company for
the implementation of the scheme for the interest of all stake holders
of the Company.
REFERENCE TO BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION (BIFR)
UNDER SICA :
In view of the accumulated losses exceeding the entire net worth of the
Company as on 31.03.2012 and pursuant to compliance of Section 15 of
the Sick Industrial (Special Provision) Act. 1985, reference has been
filed with the Hon''ble Board for Industrial and Financial
Reconstruction (BIFR) which reference has been registered vide letter
no 3(G-3)/BC/ 2012 dated 30th April, 2012.
Due to the loss incurred by the Company during the year 2011- 2012 no
dividend is recommended for the payment on the Equity Share capital.
FIXED DEPOSITS :
The Company has not accepted any deposit falling within the purview of
the provisions of the Companies (Acceptance of Deposit) Rules, 1975.
In accordance with Article 145 of the Articles of Association of the
Company, Shri Mohan N Gupta retire by rotation and being eligible,
offer themselves for re-appointment. The Board recommends their
APPOINTMENT OF STATUTORY AUDITORS :
Statutory Auditors of the Company M/s.R.R.Patchigar & Co. Chartered
Accountant of Surat will retire at the conclusion of the ensuring
Annual General Meeting from the office of the Statutory Auditors and
being eligible offer themselves for re-appointment from the end of the
ensuring Annual General Meeting till the conclusion of the next Annual
General Meeting of the Company.
The Company has made necessary arrangements for adequately insuring its
insurable interests in various properties.
ASSESSMENT OF FIRE :
The fire broke out in the finished goods godown in the factory premises
in the mid night of 29th June, 2008 and major loss occurred. The New
india Assurance co has repudiated our fire claim vide its letter dated
09th December, 2009 and in that response and to protest the repudation
of our genuine claim the company has approached and submitted the
petition with National Consumer Dispute Redressal Commission , New
Delhi.on 08th December, 2010 and next hearing has been fixed on 01st
PARTICULARS OF EMPLOYEES :
Particulars required by the provisions of Section 217(2A) of the
companies Act, 1956 read with the companies (Particulars of Employees)
Rules, 1975 as amended have not been provided since no employee is
drawing remuneration in excess of prescribed limits as per above
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EARNINGS & OUTGO
The particulars prescribed by the companies (Disclosure of Particulars
in the Report of Board of Directors) Rules, 1988 as to conservation of
energy, Technology absorption, Foreign Exchange Earnings and outgo are
furnished in the annexure to this Report.
LISTING ON STOCK EXCHANGE :
The Equity Shares of the Company are listed at Bombay Stock Exchange
Ltd. (BSE), Mumbai. DIRECTOR''S RESPONSIBILITY STATEMENT :
As required under Section 217(2AA) of the Companies Act, 1956 your
Directors state :
(i) that in the preparation of the annual accounts, the applicable
accounting standards have been followed.
(ii) that the accounting policies selected and applied are consistent
and the judgments and estimates made are reasonable and prudent so as
to give a true and fair view of the state&t affairs of the Company at
the end of the financial year and of the profit or loss of the Company
for the period.
(iii) that proper and sufficient care has been taken 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) that the annual accounts have been prepared on a going concern
CORPORATE GOVERNANCE REPORT :
your Company has complied with the Corporate Governance guidelines as
per Clause 49 of the Listing Agreement with the Stock Exchange.
A report on Corporate Governance and a Certificate from the Statutory
Auditors of the Company regarding compliance with Corporate Governance
guidelines as stipulated have been attached by way of separate Section
as part of this Annual Report.
Your Directors wish to express their sincere thanks for the support and
co-operation extended by the Financial Institution, Commercial Banks,
Government of India, Government of Gujarat, Government of Union
Territory of Silvassa (Dadra & Nagar Haveli) Buyers, Suppliers and
Share Holders for their continued support.
Your Directors also wish to express their thanks for the services
rendered by the Company''s employees at all levels.
For and on behalf of the Board
Date : 05.06.2012 Sd/-
Place : Surat Chairman