The Directors are pleased to present their 137th Annual Report
together with the statement of Accounts of your Company for the year
ended 31st March, 2012.
FINANCIAL RESULTS : For the
Year ended For the
Profit (Loss) for the
period before interest, 61,58,581 65,79,738
depreciation and taxation
Less: Interest - -
Depreciation 20,79,834 23,06,732
Taxation - -
Profit/(Loss) after interest, 40,78,747 42,73,006
Deficit brought forward from
the previous year (225,62,17,351) (226,04,90,357)
Total deficit carried
to Balance Sheet (225,21,38,604) (225,62,17,351)
The Directors do not recommend any dividend in order to reduce the
deficit and strengthen the Balance Sheet of the Company.
The Company is in the business of textiles.
The Company is under BIFR (Board for Industrial & Financial
Reconstruction) under CaseNo.135 / 1989. The BIFR has sanctioned a
Rehabilitation Scheme for the company (SS-07) vide their Order dated
22,2,2007. This Rehabilitation Scheme is under implementation.
Ms. Neesha S. Khatau and Mr. B. S. Desai, retire by rotation at the
forthcoming Annual General Meeting, and being eligible, offer
themselves for re-appointment.
The company has not accepted any fresh deposits during the year.
PARTICULARS OF EMPLOYEES
There were no employees covered under Section 217 (2A) of the Companies
Act 1956 read with the Companies (Particulars of Employees) Rules,
1975, as amended, during the year under review.
a. The Company has obtained Listing Approval from BSE in respect of
preferential allotment of 17,49,000 equity shares to the promoters of
the Company as per Clause 11 (h)(iv) of the scheme.
b. The Company has paid listing fees.
c. The application made by the Company to obtain trading permission of
the shares is pending before BSE.
Compliance Certificate obtained under Section 383Aof the Companies Act,
1956 read with Companies (Issue of Compliance Certificate) Rules, 2001
from M/s. P P Shah & Co., Practising Company Secretaries is annexed
As regards the observations, reservations or qualifications of the
Auditors in the Auditors'' Report, the relevant notes on the Accounts
The Company''s auditors Messrs Sorab S. Engineer & Co., Chartered
Accountants, hold office up to the conclusion of the ensuing Annual
general meeting. The Company has received communication from them to
the effect that their appointment, if made, would be within the limits
prescribed under section 224(1 B) of the Companies Act, 1956. The Board
proposes their re-appointment at the ensuing Annual General Meeting of
PARTICULARS OF CONSERVATION OF ENERGY. TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS AND OUTGO
In accordance with the provisions of section 217 (1) (e) of the
Companies Act, 1956, the required information relating to Conservation
of Energy, Technology Absorption, Foreign Exchange earnings and outgo,
is not annexed to this Board Report since the rehabilitation scheme is
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to the requirement u/s.217(2AA) of the Companies Act, 1956
with respect to the Directors Responsibility Statement, it is hereby
(i) that in preparation of the annual accounts for the year ended
31.03.2012 the applicable accounting standards had been followed along
with proper explanations 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 period and of the profit of
the Company for the period under report.
(iii) that the Directors had 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) that the Directors have prepared the accounts for the period ended
31.03.2012 on a ‘going concern basis''.
The Directors wish to convey their appreciation to all the Company''s
employees for their enormous personal efforts as well as their
collective contribution to the Company''s performance. The Directors
would also like to thank the shareholders for their continuous support
given by them to the Company and their confidence in its management.
By Order of the Board of Directors
Panna S. Khatau
Mumbai, 25th June, 2012 Chairperson