To the Members of NEPC TEXTILES LIMITED
The Directors have pleasure in presenting the Eighteenth Annual Report
and Audited Accounts of your Company for the year ended 20th September,
2011. The accounts for the year under review have been prepared for
twelve months from 1st October, 2010 to 30th September, 2011
The Financial Results of the Company during the year under review are
(Rs in lakhs)
Year ended Year ended
Particulars (12 months) (12 months)
Gross Income - -
Profit/ (Loss) before Depreciation. (6.32) 6.80
Depreciation - 144.86
Profit / (Loss) after Depreciation (6.32) (138.06)
Provision for taxation - -
Profit / (Loss) after taxation (6.32) (138.06)
Balance Profit / (Loss) Account B/F (429.78) (291,71)
Add: Transfer from Dividend Payable A/c - -
Add:- B/F of balance General Reserve - -
TOTAL (436.10) (429,78)
General Reserve - -
Capital Work in Progress written off - -
Balance Profit / (Loss) carried to
Balance Sheet (436.10) (429.78)
Due to unfavourable market trends and various other factors, the
operating performance of the Company was severely affected during the
year under review and hence the Company could not generate any income
during the year.lt is hoped that the Company will be able to regain
operating performance in the coming years.
The Directors do not recommend dividend for the year ended 30th
September 2011, in view of the losses incurred by the Company.
Mr. Rajkumar and Mr. Tirupathi Kumar retire by rotation at the
forthcoming Annual General Meeting and being eligible, offer themselves
Mr. A. Nageswaran, Chartered Accountant, Coimbatore, retire at the
conclusion of the forthcoming Annual General Meeting. However, they are
eligible for re-appointment and are given their consent to act as the
auditors of your company, if appointed. The Auditor committee and the
Board recommends the re-appointment of M/s. A. Nageswaran, Chartered
Accountants, as the Auditor of the Company.
With regard to para 4 (f) of Auditor''s report and note no. 4 in
Schedule 19, the Company is in the process of getting confirmations
from the debtors/creditors as well as review and revalue and also
reconcile the current assets. Loans & advances, Current liabilities.
In compliance with Section 217 (2AA) of the Companies Act, 1956, the
Directors confirm that :
- in the preparation of annual accounts the applicable Accounting
Standards have been followed: along with proper explanation wherever
- the Accounting Policies selected and applied on a consistent basis,
give a true and fair view of the affairs of the Company and of the loss
for the financial year under review.
- proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions of the
aforesaid Act for safeguarding the assets of the Company; and for
prevention and detection of fraud and other irregularities;
- the Annual Accounts have been prepared on a going concern basis.
WRITING-OFF OF ACCUMULATED LOSSES OF THE COMPANY AGAINST THE SECURITIES
PREMIUM ACCOUNT AND SHARE CAPITAL OF THE COMPANY
Reduction of Share Capital: As already reported in the 15th Annual
Report, as per the Order dated 04-08-2008 of the High Court of
Judicature at Madras, the whole amount of Rs. 17,52,09,000/- being
the credit balance lying in the Securities Premium Account stands
reduced fully, and also the Company''s paid-up Share Capital stands
reduced from Rs. 19,22,82,380/- divided into 1,92,28,238 equity Shares
of Rs. 10/- each to Rs. 14,93,90,380/ divided into 1,49,39,038 equity
Shares of Rs.10/-each for which the Company is in the '' process of
corporate action to give effect to the scheme of capital reduction.
A detailed report on this subject forms part of this Report.
Our Company has not accepted any fixed deposits under section 58AA of
the Companies Act, 1956 from the public during the year underreview
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND , FOREIGN EXCHANGE
EARNINGS AND OUTGO
The statement pursuant to Section 217 (1) (e) of the Companies Act 1956
read with Companies (Disclosure of Particulars in the Report of the
Board of Directors) Rules 1988 is given in the annexure forming part of
PARTICULARS OF EMPLOYEES
No employee of the Company was paid remuneration in excess of limits
prescribed under Section 217 (2A) of the Companies Act, 1956, read with
the relevant Rules as amended.
The Directors express their appreciation for the support and
contribution by the employees at all levels rendered to the Company
during the year under review.
Your Company continues to maintain harmonious and cordial relations
with its workers.
Your Directors would like to place on record their deep appreciation
and gratitude to the Company''s members for their continued support
Your Directors wish to thank and deeply acknowledge the co-opearation
and assistance extended by the Bankers, Government authorities, and
other business associates. The Board would also take this opportunity
to commend the employees of the Company at all levels for their
contribution to the Company''s success.
(By Order of the Board)
For NEPC Textiles Limited
Ravi Prakash Khemka
PLACE : Chennai
DATE : 28-10-2011