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JJ Exporters
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Download Annual Report PDF Format 2013 | 2012 | 2010
Directors Report Year End : Mar '13    Mar 12
The Directors have pleasure in presenting the Fortieth Annual Report,
 together with the Audited Accounts of the Company for the year ended
 31st March, 2013.
 
 FINANCIAL RESULTS
 
                                           2012-13        2011-12
 
 Profit before Tax, Depreciation and 
 Extra Ordinary Items                      (447.01)      (706.22)
 
 Less: Depreciation                         458.11        526.98
 
 Profit/(Loss) before Tax and extra 
 ordinary items                            (905.12)     (1233.20)
 
 Less: IT. for earlier year                                 2.90
 
 Less: Prior Period Items                     0.09          0.45
 
 ProfitV(Loss) before extra ordinary items  905.21)     (1236.55)
 
 Extra Ordinary Items                                     275.48
 
 Profit/(Loss) after Tax                   (905.21)     (1512.03)
 
 Add: Balance brought forward 
 from Previous year                       (1436.54)        75.49
 
 Balance in Profit & Loss Account         (2341.75)     (1436.54)
 
 
 BUSINESS AND PERFORMANCE
 
 The sales revenue was down at Rs. 4541.36 lacs as compared to Rs.
 6163.37 lacs in the previous year. The loss before Tax, Depreciation
 and Extra Ordinary item was down at Rs. 447.01 lacs as compared to Rs.
 706.22 lacs in the previous year. This was because of an income of Rs.
 881.42 lacs on sale of idle fixed assets during the year. The
 operations of the main unit of your Company, J. J. Spectrum Silk, at
 Kolkata were under suspension for nearly two and a half months during
 the year due to industrial relations problem. It had an impact on the
 performance of your Company.
 
 The global recession is still continuing and there are no signs of
 improvement in the demand for your Company''s product. Your Company had
 to close the operations at Bangalore as the units were incurring losses
 for lack of capacity utilization.
 
 CURRENT YEAR''S OUTLOOK
 
 Although your Directors are making all round efforts to improve the
 working of your Company, the actual performance would depend on many
 external factors like movement of exchange rate for Indian Rupee
 vis-a-vis various foreign currencies, the revival of global economy and
 improvement in the demand for your Company''s product in the foreign
 countries. Your Directors have initiated various measures viz. closure
 of loss making units, debonding a part of the manufacturing facilities
 at the Kolkata Unit in order to utilize the idle capacity for doing job
 work, diversification into other fabrics viz. linen, polyester etc. and
 cost reduction exercises on a continuous basis. The operations of loss
 making units have already been closed. The debonding exercise is almost
 complete.  The Company is in the process of tying up the funds required
 for financing capital expenditure for production of polyester fabric.
 
 DISPOSAL OF UNDERTAKINGS
 
 Since the operations at Bangalore have been closed, your Directors have
 decided to sell the Land and Building and other fixed assets viz. Plant
 and Machinery, fixtures etc. of the units at Bangalore. Your Company
 has already approached the members for their approval and has mailed a
 Notice together with Resolution, Postal Ballot Form etc. on 7th May,
 2013. The sale proceeds of these assets shall be utilized for repayment
 of term loan.
 
 OVERSEAS SUBSIDIARIES AND JOINT VENTURE
 
 The performance of Company''s foreign subsidiaries was satisfactory
 during the year.
 
 RESTRUCTURING OF TERM LOAN AND WORKING CAPITAL FACILITIES
 
 Because of pressure on the cash flow, your Company has approached the
 term lender for restructuring of the term loan by way of deferment of
 repayment instalments and funding of interest. It has also approached
 the working capital lenders for conversion of a part of the working
 capital outstanding into working capital term loan and sanction of some
 fresh loan.
 
 RETAIL SHOWROOM
 
 The performance of Company''s retail showroom ''ONSET'' at Kolkata was by
 and large satisfactory during the year.
 
 DIVIDEND
 
 Owing to loss, your Directors do not recommend any dividend for the
 year.
 
 DIRECTORS
 
 Mr. Arvind Kr. Thakur resigned from the Board of the Company during the
 year w.e.f. 01.06.2012. Mr. A. B. Chaturvedi was appointed as an
 Additional Director during the year by the Board at its meeting held on
 14.08.2012. Mr. Chaturvedi will hold office upto the date of the
 forthcoming Annual General Meeting. Notice from a member of the Company
 has been received proposing him as a regular Director of the Company.
 Mr. Chaturvedi was also appointed as Whole Time Director during the
 year. Mr. P. J.  Sheth has resigned from the Directorship of the
 Company w.e.f. 18.05.2013.
 
 Mr. Pradeep Kumar Singhi, Director, retires by rotation and being
 eligible has offered himself for re-appointment at the ensuing Annual
 General Meeting.
 
 DIRECTORS RESPONSIBILITY STATEMENT
 
 As required under Section 217 (2AA) of the Companies Act, 1956 your
 Directors hereby confirm :
 
 i) That in the preparation of the Annual Accounts, the applicable
 accounting standards have been followed along with proper explanation
 relating to material departures, if any;
 
 ii) That such accounting standards have been applied consistently to
 make 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 as at 31st March, 2013 and of the loss for
 the year ended on that date;
 
 iii) That 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 irregularities, if any, has
 been taken;
 
 iv) That the Annual Accounts have been prepared on a ''going concern''
 basis.
 
 CORPORATE GOVERNANCE
 
 Your Company has consistently been complying with the Corporate
 Governance Code prescribed by SEBI and a detailed report on Corporate
 Governance together with a Certificate of Compliance from the Statutory
 Auditors, as required by Clause 49 of the Listing Agreement, forms a
 part of this Annual Report.
 
 AUDITORS
 
 M/s. Salarpuria Jajodia & Co., Chartered Accountants, Kolkata, bearing
 Registration No.302111E, retire at the conclusion of the ensuing Annual
 General Meeting and have expressed their willingness to be
 re-appointed. They have confirmed that their re- appointment, if made,
 would be covered within the ceiling specified under Section 224 (1B) of
 the Companies Act, 1956.
 
 COST AUDITORS
 
 Pursuant to the Directives of the Central Government under the
 provisions of Section 233B of the Companies Act, 1956, qualified Cost
 Auditors have been appointed to conduct cost audit relating to the
 products of the Company.
 
 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNING AND OUTGO
 
 A) Conservation of energy and technology absorption :
 
 The particulars in respect of conservation of energy and technology
 absorption are given in Annexure ''A'' forming part of this report
 pursuant to Section 217(1)(e) of the Companies Act, 1956, read with the
 Companies (Disclosure of Particulars in the Report of Board of
 Directors) Rules, 1988.
 
 B) Foreign Exchange earnings and outgo :
 
 The information is contained in Item No.14 of Note No.23'' in notes to
 the accounts.
 
 INVESTMENTS
 
 The details of investments are given in Note No. ''8'' annexed to the
 annual accounts of the Company.
 
 SUBSIDIARY COMPANIES
 
 The particulars, as required under Section 212 of the Companies Act,
 1956, in respect of Company''s subsidiaries viz. Spin International
 INC., OOO JJ Home and J. J. Creations S.A. are annexed.
 
 The Government of India vide Circular No.2/2011 dt.08.12.2011 has
 granted general exemption to companies from annexing the accounts of
 its subsidiary companies subject to fulfilment of certain conditions.
 Necessary financial details in respect of each subsidiary as stipulated
 in the said exemption letter are given in a separate statement attached
 elsewhere in the report.
 
 Your Directors undertake that annual accounts of the subsidiary
 companies and the related detailed information will be made available
 to the holding and subsidiary company investors seeking such
 information at any point of time. The annual account of the subsidiary
 companies will also be kept for inspection by any investor at its head
 office and that of the subsidiary company concerned.
 
 FIXED DEPOSITS
 
 The Company has not accepted any Fixed Deposits during the year.
 
 ACKNOWLEDGEMENTS
 
 Your Directors place on record their deep appreciation for the
 continued assistance and co-operation extended to the Company by its
 customers, investors, bankers, government agencies and its dedicated
 band of employees.
 
 Registered Office :                       By order of the Board 
 
                                           23C, Ashutosh Chowdhury
                                           Avenue
 
 Kolkata - 700 019                         S. N. Jhunjhunwala
 
 Dated: 18th May, 2013                     Executive Chairman
Source : Dion Global Solutions Limited
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