The Directors have pleasure in presenting the Thirteenth Annual Report
together with the Audited Accounts for the year ended 31st March 2002.
Year Ended Year Ended
(Rs. in lacs)
Profit/(Loss) before Interest and Depreciation (12.97) 6.25
Interest 58.92 58.93
Depreciation 28.85 28.25
Profit after tax (100.74) (80.94)
Loss Brought forward from previous year (1069.88) (988.94)
Balance Loss carried forward (1170.62) (1069.88)
PERFORMANCE OF THE COMPANY
For this financial year ending March 2002 the company has incurred a
loss of Rs. 12.97 lakhs on a turnover of Rs. 170.54 lakhs before
interest and depreciation. This loss is due to lower production and
drop in sales. For want of Working Capital, the company could not go
for value added irrigation system sales. The company restricted its
production to mere PVC Pipes, because, raw material for PVC Pipes was
available on a fortnightly credit basis on selective occasions. During
the other times the raw materials were to be purchased on advance
payment. Instead of irrigation systems marketing, the company was
marketing PVC Pipes only is a commodity item. Even the PVC Pipes sale
was done in selective market where the payments are assured. There is
a severe competition in PVC market. Hence, we could not keep any
higher margins on selling prices.
Our case is still pending in the Board for Industrial and Financial
Reconstruction (BIFR) though the company was declared sick Under.
Section 3 (1) (o) of the Act on 30-1-2001. Further proceedings are
pending at BIFR for want of proposal or actions from the Central Bank
of India as per the guide lines given in the BIFR Order dt. 15-2-2001.
The company is looking out for the possibilities of revival through any
positive proposals offered by the Bank or through any financial
participation from outside.
The company has not accepted any deposits from the public in pursuant
to Sec. 58 A of the Companies Act, 1956.
Mr. 6 Paul Lamech is retiring by rotation and being eligible offering
himself for reappointment.
M/s. R Subramanian & Co., Chartered Accountants, Chennai retire at the
ensuing Annual General Meeting and are eligible for reappointment.
INFORMATION PURSUANT TO SECTION 217 (2A) OF THE COMPANIES ACT, 1956
READ WITH THE COMPANIES (PARTICULARS OF THE EMPLOYEE) RULES 1975.
(a) There were no employees employed throughout the year who were in
receipt of remuneration for the year which in the aggregate was not
less than Rs. 12,00,000/-
(b) There were no employees employed for a part of the year who were in
receipt of remuneration which in the aggregate was not less than Rs.
1,00,000/- per month.
Information pursuant to Section 217 (2AA) of the Companies Act, 1956
read with the Companies (Directors Responsibility) Rules 2000.
1. The annual accounts have been prepared based on the applicable
accounting standards along with proper explanation relating to the
2. Accounting policies have been selected and applied consistently
and the judgments and estimates made 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 and of the profit and loss of the company
for that period.
3. Proper and sufficient care had been taken for the maintenance of
adequate accounting records in accordance with the provisions of this
act for safeguarding the assets of the company and for preventing and
detecting fraud and other irregularities.
4. The annual accounts have been prepared on a going concern basis.
RESEARCH AND DEVELOPMENT
As the members of the company are aware that the companys products are
approved by Bureau of Indian Standard and have established a quality
FOREIGN EXCHANGE EARNINGS
There are no Foreign Exchange earnings or outflow during the year under
The Directors wish to place on record their appreciation of the
wholehearted support extended by the Shareholders, Bankers, Dis-
tributors. Dealers, Suppliers, State/Central 6overnment Agencies and
the sincere support as well as co-operation of the employees at all
On Behalf of the Board
G PAUL LAMECH ANAND P FREDRICK
DIRECTOR MANAGING DIRECTOR
Place: Chennai - 600008,
Date: 16th August, 2002