Your Directors have pleasure in presenting the 10th Annual Report
together with the Audited Accounts of the Company for the financial
year ended 30th June 2002.
(Rs. in Lakhs)
As on 30.06.2002 As on 31.03.2001
Total Income/Sale 4654.59 1997.96
Interest & Depreciation 108.19 52.24
Interest 366.05 277.00
Depreciation (257.86) (227.76)
Depreciation 77.07 62.14
Net Profit/(Loss) for the Year (334.93) (286.90)
Provision for Income Tax -- ---
Profit/(Loss) after Tax (334.93) (286.90)
Accumulated losses brought
forward from last year (1260.50) (973.60)
Balance carried over (1593.43) (1260.50)
Due to absence of profit for the financial year ended 30th June 2002
your Directors are not in a position to recommend any dividend.
The Company got the Sales Tax Exemption w.e.f. the date of commercial
production i.e. 6th July 1997. It was subsequently withdrawn from 1st
August 1999. The Company has neither collected and Sales Tax from the
customers nor deposited with Sales Tax Authority since the Company
expects Sales Tax Exemption with retrospective effect from 1.08.1999.
On 8.1.2002 the Honble High Court of Orissa dismissed the writ
petition filed by the Company challenging the withdrawal of Sales Tax
Exemption granted earlier by the Govt. of Orissa. The Company has filed
a review application on 14.01.2002 before the Honble High Court of
Orissa against the said judgement and the matter is subjudice. Based on
the appeal made before the Honble Commissioner of Commercial Tax,
Orissa, Cuttack on 17.01.2002 u/s 22(1), 32(1) & 33(1) of SICA, 1985,
the Honble Commissioner took a judicious view and upheld the petition
of the Company on 02.02.2002 directing not to take any coercive action
against the Company till the BIFR disposes the case. Due to delay in
the hearing of review petition which has already been filed before the
Honble High Court of Orissa, the Company moved to the Honble Supreme
Court of India, New Delhi by filing a Special Leave Petition (SLP) on
25.02.2002 to get justice immediately. The Honble Supreme Court
advised the petitioner to complete the review application matters
pending before the Honble High Court of Orissa before pursuing the
matter before the Apex Court. Accordingly the Company withdrew the SLP
as advised by the Apex Court on 12.03.2002. The review petition is now
subjudice before the Honble High Court of Orissa. After dismissal of
writ-petition on 8.01.2002 the suppliers of raw materials have stopped
supplying the raw materials on the fear that Sales Tax Authorities may
attach the same at any point of time. Hence the production of the
Company has been suspended since March 2002.
The management of the Company is exploring various options to
recommence the production activities and is very optimistic about the
Mr. Narayan Dass Jhawar and Mr. Madhusudan Jhawar retire by rotation
from the Board of Directors at the ensuing Annual General Meeting and
being eligible offer themselves for re-appointment.
Mr. Jitendra Kumar Mohanty has resigned from Directorship of the
Company w.e.f. 26th June 2002.
Mr. Ghanshyam Dass Jhawar has resigned from the Executive Directorship
of the Company w.e.f. 31st August 2002. He will continue on the Board
as a Non-Executive Director.
On withdrawal of nomination by IFCI Ltd., Mr. H.S. Tyagi ceased to be
the Director of the Company w.e.f. 17.10.2001
Following Directors are the members of the Audit Committee of the Board
of Directors of the Company.
1. Prof. S. C. Kuchhal, Chairman of the Committee
2. Mr. Jyotindra Mohanty
3. Mr. Brij Mohan Jhawar, Managing Director
Your Company has always followed the philosophy of conducting its
business with due compliance of Laws, rules, regulations and sound
internal control system and procedures. The Company will implement the
mandatory requirement of Corporate Governance Code as prescribed by
Securities and Exchange Board of India.
DIRECTORS RESPONSIBILITY STATEMENT
The Board of Directors of your Company state :
I. THAT in the preparation of the Annual Accounts, the applicable
Accounting Standard has been followed along with proper explanation
relating to material departures.
II. THAT the Directors had selected such Accounting Policies and
applied them consistently and made judgements 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 financial year and of the
profit or loss of the Company for that period.
III. THAT the Directors had taken proper and sufficient care 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.
IV. THAT the Directors had prepared the Annual Accounts on a going
M/s Samantaray & Co., Chartered Accountants, Cuttack, Auditors of the
Company hold office until the conclusion of the ensuing Annual General
Meeting and are eligible for re-appointment.
INFORMATION PURSUANT TO SECTION 217 OF THE COMPANIES ACT 1956
A. CONSERVATION OF ENERGY
Energy conservation, as far as coal and electricity are concerned, has
been maximized by adopting appropriate modification in the machinery &
equipments. Efforts are underway for further improvement in the matter.
B. TECHNOLOGY ABSORPTION
Since the technology adopted by the Company is modern and
sophisticated, it has been practically found that oil loss is minimum
with an acceptable standard of quality product.
C. FOREIGN EXCHANGE EARNING AND OUT-GO
PARTICULARS OF EMPLOYEES U/S 217 (2) (A) OF THE COMPANIES ACT. 1956
Information required under section 217 (2) (A) of the Companies Act,
1956 (Particulars of Employees) Rules, 1975 is not applicable to your
Company as no employee is covered within the meaning of this provision.
Industrial relations with the workers and staff of the Company remained
cordial during the financial year.
Your Directors place on record their sincere appreciation of the
cooperation and assistance extended by IFCI Ltd., State Bank of India,
IPICOL and the Govt. of Orissa. The Board of Directors also wishes to
place on record their appreciation of the cooperation of the
shareholders and employees of the Company at all levels for their
sincere efforts and contribution.
For and on behalf of the Board of Directors
(Prof. S. C. KUCHHAL) CUTTACK