The Directors present the 19th Annual General Report on the affairs of
the Company together with Audited accounts for the year-ended
COMPANY CEASED TO BE A GOING CONCERN:
It was reported to you earlier that several Shareholders have not paid
the balance of allotment money and the calls in arrears stood at
Rs.92.40 lakhs and that therefore the company could not take delivery
of the equipment by paying the balance amount to the machinery
suppliers. Added to this the delay in execution of the project has
resulted in escalation of the project cost to a total of Rs.831.02
lakhs. It was also reported to you that because of non-payment of dues
to the financial institutions the APSFC & APIDC have also seized the
unit during September, 1997. It was also reported to you that your
Directors efforts to raise additional funds did not fructify because of
the seizure of the unit. Added to this APSFC auctioned all the assests
seized for Rs.48.50 lakhs. The action resulted in a loss of
Rs.2,94,70,548/-.lt has also become necessary to write off the
pre-production expenses as unfructuous which would have been otherwise
capitalized. Thus the sub-strata of the Company has gone and it ceased
to be a going concern. Consequential action to be taken under the
provisions of the companies Act 1956 will be taken up during 2004-05.
During the year under review the company has not accepted any deposits
within the meaning of Sec.58 of the companys Act, 1956 read with
companys (Acceptance of deposits Rules) 1975.
DIRECTORS RESPONSIBILITY STATEMENT:
The Directors of your Company hereby report:
i) that in the preparation of Annual Accounts for the year ended 31s
March, 2004, the applicable accounting standards have been followed
along with the proper explanation relating to material departure:
ii) 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 ended 31
iii) that the directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of Companies Act for safeguarding the assets of the company
and for preventing and detecting fraud and other irregularities:
We regret to report the sad demise of Mrs.D.Jyothirmayi, one of the
promoter directors, Your directors place on record their appreciation
of the services rendered by Mrs. D.Jyothirmayi during her tenure as
Sri. A.K. Rao, Director, retires at this meeting by rotation. Being
eligible he offers himself for re-appointment.
Sri D.D.Jatkar, Director, retires at this meeting by rotation. Being
eligible he offers himself for reappointment.
PARTICULARS OF EMPLOYEES :
There are no employees coming under the purview of sEc.271 (2A) of the
Companys Act, 1956 read with companies (Particulars of employees)
Rules whose particulars are required to be furnished.
You are required to appoint M/s J.S. Kameswara Rao & Co., as auditors
for the year 2004-2005.
By order of the Board of Directors.
Place : Hyderabad
Date : 12.08.2004