The Directors are pleased to present the 21st Annual Report and the
Audited Accounts of the Company for the year ended 31st March, 2012.
SUMMARISED FINANCIAL RESULTS
The Summarized Financial Results of the Company for the year ended 31st
March, 2012 were as follows.
(Rs. in lacs) (Rs.in lacs)
Total Revenue 11412.95 10424.96
Gross Profit before Interest &
Depreciation 934.37 (464.70)
Less: Interest 68.09 24.04
Less: Depreciation 453.90 449.49
Net Profit/(Loss) for the Year 412.38 (938.23)
Less: Provision for tax 223.82 (337.96)
Less: MAT Credit Entitlement (174.63) 0.00
Profit after Tax 363.19 (600.27)
Add Balance Brought Forward from
previous year 535.76 898.95
Balance available for appropriation 898.95 298.68
Transfer to Reserves NIL NIL
Surplus Carried to Balance Sheet 898.95 298.68
In view of the loss incurred during the financial year 2011-12, the
Board expresses their inability to declare any dividend for the current
During the year under review the company successfully manufactured
nylon yarn along with its existing capacities of polyester yarn. This
has made the company more diversified.
Your Directors hereby report that during the year under review, the
gross turnover of the company was marginally lower at Rs. 12096.03 lacs
for the year ended 31.03.2012 as compared to Rs. 13152.68 lacs for the
corresponding year ended on 31.03.2011.
Fluctuation in raw material prices coupled with competitive pressures
continued to hamper the profitability of the Company. Moreover, the
increase in the cost of major inputs could not be entirely passed on to
Under the present scenario the Company is focusing on increased
productivity through optimal utilization of production capacity and
reduction in operating costs.
BOARD OF DIRECTORS
Under section 256 of the Companies Act, 1956 and as per the provisions
of Articles of Association of the Company, Shri Ashok Jain, Shri
Kailaschand Jain and Shri Harshad Patel retire by rotation and being
eligible offer themselves for re-appointment. The board recommends
reappointment of retiring directors.
A brief resume of the Directors proposed to be re-appointed, nature of
their expertise in specific functional areas etc. as stipulated under
Clause 49 of the Listing Agreement entered into with the various Stock
Exchanges are provided in the report of Corporate Governance forming
part of the Annual Report.
DIRECTORS RESPONSIBILITY STATEMENT
In accordance with the provisions of Section 217(2AA) of the Companies
Act, 1956, the Board of Directors state that:
(i) In preparation of the annual accounts for the financial year ended
31 March, 2012, the applicable accounting standards have been followed
along with proper explanations relating to material departures.
(ii) 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 as at 31 March 2012 and of the profit of the Company for
the year ended on that date.
(iii) Directors have 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) The Directors have prepared the annual accounts of the Company on
a ''going concern'' basis.
As reported in the year 2011-2012 your Company continued to
accept\renew deposits and maintained a high standard of service. As on
31st March, 2012 there have been no defaults in payment of Deposits and
also no deposits remained unclaimed after maturity.
PARTICULARS OF EMPLOYEES
Particulars of employees required u/s 217(2A) of the Companies Act,
1956 read with the Companies (Particulars of Employees) Rules, 1975, as
amended, are not given, as none of the employee is qualified for such
of the disclosure.
The properties and insurable assets and interests of your Company, like
building, plant and machinery and stocks, among others, are adequately
AUDITORS AND AUDITORS REPORT
M/s R. K. G. & Co., Chartered Accountants, 409, Ajanta Shopping &
Textile Arcade, Ring Road, Surat - 395 002 will cease to hold the
office at the conclusion of the ensuing Annual General Meeting and are
recommended for the reappointment.
The Company has received a certificate from the retiring auditors to
the effect that the appointment if made, will be in accordance with the
limits specified in section 224 (1B) of the Companies Act, 1956. The
Board recommends their re-appointment.
Notes forming part of the accounts, which are specifically referred to
by the Auditors in their report are self-explanatory and therefore, do
not call for any further comments.
As per the requirement of the Central Government and pursuant to the
provisions of Section 233B of the Companies Act, 1956, the audit of the
cost accounts relating to textiles is being carried out every year. The
Central Government has approved the appointment of M/s M Goyal & Co,
Cost Accountants having firm registration No. 00051/07/2008 as Cost
Auditors for conducting cost audit for the financial year 2011-12. The
cost audit report in respect of financial year 2011-12 will be filed on
or before the due date. The cost audit report for the Financial Year
2010-11 which was due to be filed with the Ministry of Corporate
Affairs on 30th September, 2011 was filed on 26th September, 2011.
CASH FLOW ANALYSIS
The Cash Flow statement for the year ended on 31st March, 2012, in
terms of Clause 32 of the Listing Agreement entered by the Company with
the Stock Exchanges where the shares of the Company are listed forms
part of the Annual Report.
Information required u/s 217(1)(e) of the Companies Act, 1956 read with
Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988 relating to conservation of energy, technology
absorption are as per the Annexure forming part of this Report.
SAFETY HEALTH & ENVIRONMENT
Your company is committed to being proactive to Safety, Health and
Environment. Continued safety awareness was maintained through several
activities such as training, competitions, awards, etc. where there is
high worker participation.
Your Company has ensured eco-friendly disposal of various hazardous
waste at the designated disposal site recognized by Pollution Control
Board. In addition, the Company has complied with the environmental
Your Company complies with all the mandatory requirements pertaining to
Corporate Governance, in terms of clause 49 of the Listing Agreement
with the Stock Exchanges. A report on Corporate Governance as
stipulated under Clause 49 of the Listing Agreement with the stock
exchanges, forms part of the annual report.
A separate section on Corporate Governance containing all the
information as mandated by the Listing Agreement is attached herewith
and forms a part of this report.
Certificate from the Practicing Company Secretary of your Company
regarding compliance with the conditions of Corporate Governance as
stipulated in Clause 49 of the Listing Agreement with the Stock
Exchange is attached herewith and forms a part of the Corporate
MANAGEMENT DISCUSSION AND ANALYSIS
Management Discussion and Analysis on matters relating to business
performance, as stipulated in Clause 49 of the listing agreement with
the stock exchanges, is given as a separate statement in the Annual
Your Directors place on record their appreciation for the continued
support and co-operation received from customers, suppliers, dealers,
banks and government authorities. The Board also, expresses its
appreciation for the understanding and support extended by the
shareholders and employees of the Company.
For and on behalf of the Board
Place : Palsana Ashok R. Jain Jivabhai A. Patel
Date : 31st August, 2012 Managing