The Directors have pleasure in presenting the Eighteenth Annual Report
and the audited Accounts of your Company for the financial year ended
31st March 2006.
FINANCIAL RESULTS 2005-2006 2004-2005
Sale 1,700.00 95,642.84
Other Income - -
Interest & Finance Charges 00 14,791.00
Depreciation 2,71,150.00 2,58,388.00
Net Profit Before Tax (30,40,429.55) (29,23,689.36)
Less: Provision for Taxation 0.00 0.00
Less: Deferred Tax Liability 0.00 0.00
Net Profit after Tax (30,40,429.55) (29,23,689.36)
Add : Surplus brought forward
from previous year (83,94,587.38) (53,98,575.02)
relating to earlier years 0.00 72,323.00
Profit available for Appropriation (1,14,35,016.93) (83,94,587.38)
General Reserve 0.000.00 0.00
Surplus (deficit) carried to
Balance Sheet (1,14,35,016,93) (83,94,587.38)
REVIEW OF OPERATIONS
The Company has achieved sales turn over of Rs. 1,770.00 in the
financial year 2005- 06 as against 95,642.84 in financial year
2004-05.The net loss has been increased to Rs. 30.40 Lacs
in the current financial year against net loss of Rs. 29.247 Lacs in
the previous financial year.
Your Director does not recommend any dividend for the year under
In accordance with the provisions of the Companies Act, 1956, and the
Companys Articles of Association, Mr. Salim Peerjade, retires by
rotation at the ensuing Anual General Meeting and is eligible for
Mr.Jagdish Agarwal, Chairman and Managing Director of the Company has
reigned as a Director w.e.f.7th February, 2006 due to some
pre-occupation and other urgency. The Board place on record for the
sincere contribution made by Mr. Jagdish Agarwal during his tenure as
At a meeting of the Board of Directors of the Company held on 7th
February, 2006 the Board had appointed Ms. Vinod Agarwal as an
additional director and is eligible to hold the office up to the date
of ensuing Annual General Meeting. The Company has received a valid
notice in writing from a member(s)of the company proposing his
candidature as a Director of the Company, is recommended for
appointment. The Board of Director at their meeting held on 7th
February, 2006 appointed Mr. Vinod Agarwal as Managing Director w.e.f.
7th February, 2006 subject to the appointed of members. The Board
recommend for his appointment at the ensuing Annual General Meeting.
The composition of the Audit Committee is as given in the Report on
The information regarding Remuneration Committee is as given in the
Report of Corporate Governance.
As required under the Listing Agreement with Stock Exchange(s), Report
on Corporate Governance is attached herewith, forming part of the
A Certificate from the Auditors of the Company reading compliance of
the conditions of the Corporate Governance as stipulated under clause
49 of the Listing Agreement is annexed to the Report on the Corporate
The Company dose not have any subsidiary, therefore provisions of
section 212 of the Companies Act, 1956 is not applicable.
During the year under review the Company had no employee whose
particulars are required to be mentioned pursuant to the provisions of
Section 217(2A) of the Companies Act, 1956 read with the rules
CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION
The Director have nothing to report on the matters relaying to
conservation of energy and technology adoption, as the Company is not
engaged in any manufacturing activity and has no foreign collabration.
FOREIGN EXCHANGE EARNINGS AND OUTGO
During the year under review, nothing has been earned or spends on
account of Foreign Exchange.
The Company has not invited/received any Fixed Deposits from the Public
during the year under report.
The proper ties / assets of your Company are adequately insured.
M/s. Gupat Shyam & Co., Chartered Accountants, the Auditor of the
Company, holds office till the conclusion of the ensuing Annual General
Meeting and are eligible for reappointment. The Company has received
letter from M/s. Gupta Shyam & co. to the effect that their
reappointment as Auditor, if made, would be within the limits under
Section 224(1 -B) of the Companies Act 1956
The Auditors observations and the relevant Notes are self-explanatory
and, therefor, do not call for any comments.
Pursuant to section 217 (2AA) of the companies Act, 1956, The Directors
1. that in preparation of the Annual Accounts, the applicable accouning
standard have been followed and that no material departures have been
made from the same.
2. that they have selected such accounting policies and applied them,
consistently and made judgements and estimates that are reasonable
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 income and
expenditure of the company of that period.
3. that they have taken proper and suffient 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.
4. that they have prepared the annual accounts on a going concern basis.
The Directors have pleasure in recording their appreciation of the
assistance, co-operation and support expended to your company by
the shareholders, all Government Authories, Financial Institutions,
Banks, Consultants, Solicitors, Customers, etc.
For and on behalf Of the Board of Directors;
Place: Mumbai Vinod Agarwal
Date : 25th August, 2006 Chairman