The Directors are presenting the Twenty First Annual Report for the
year ended 31st March 2006.
(Rs in Lacs)
FINANCIAL RESULTS 2005-2006 2004-2005
Sales & other turnover 876.70 4972.99
Gross Profit Before
Depreciation & Financial charges 91.29 462.60
Less: Financial Charges (162.32) (790.85)
Depreciation (42.41) (210.60)
Profit/Loss Before Taxation (296.07) (538.85)
Add : Brought forward loss (4405.10) (3866.25)
Less : Profit of Sale of Assets 1082.66 -
Loss carried to Balance Sheet (3618.46) (4405.10)
There is no business operations for the year under review.
In view of the losses incurred during the year under review, your
Directors regret their inability to declare any dividend for the year.
Mr. Bishambharlal Kasermvala Director retires at this Meeting and being
eligible offers himself for re-appointment
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to the requirements Under Section 217(2A) of the Companies
Act, 1956 with respect to Director's Responsibility statement, it is
a. That in the preparation of the Annual Accounts for the Financial
year ended 31st March 2006, the accounting standards had been followed
alongwith proper explanation relating to material departures
b. That the Directors had selected such accounting policies and applied
them consistently and made judgements and estimates that were
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 31st March
2006 and of the Profit or Loss of the company for the year under
c. That the Directors had 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
d. That the Directors had prepared the accounts for the financial year
ended 31st March 2006 on a going concern basis, however owing to the
present scenario Directors reserves their assumption of going concern
basis for the coming years
PARTICULARS OF EMPLOYEES:
The details as required under Section 217 of the Companies Act, 1956
are not applicable as no employees is drawing salary of RS. 24,00,000/-
per annum or RS 2,00,000/- per month if employed for the part of the
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNING & OUTGO :
The Company stopped all its manufacturing activities, hence no report
is to be given
LISTING COMPLIANCE :
The company's shares are listed at Mumbai & Ahmedabad Stock Exchanges
As per the letter dated 30th March 2004 the Equity shares of the
company are to be traded in de-mat form. The company had not signed
agreements with Central Depository Services (India) Limited arid
National Securities Depository Limited for de-mat of the Equity shares
The Company had not paid listing fees of Mumbai and Ahmedabad Stock
Exchange for the current year and previous years. The Company shall
make the payment of fees as the Cash Flow position improves. The
trading of the Inquiry share.s of the company are under suspension at
both the stock exchanges.
CORPORATE GOVERNANCE :
As required a report of Corporate governance under clause 49 of listing
agreement to be enclosed with the Director's report.
The retiring Auditor M/s. Neeta & Company, Chartered Accountants
expressed their willingness for re-appointment. The Board recommends
their appointment as the Auditors of the Company.
The qualifications, observations and suggestions made by the Auditors
in their report are self-explanatory in view of the extra ordinary
circumstances developed with taking over possession of the Silvassa
Unit forcibly by ARCIL, since 6th June 2005, and further to floods in
July 2005, Board of Directors of the company is not in position to take
appropriate measures for complying with the statutory requirements
accordingly In view of the absence of the official communication by
ARCIL, since 6th June 2005 the Board of Directors are not in position
to give an effective reply to all the observations and qualifications
made by the Auditors in their reports, Annexure to the Auditors reports
and Notes on accounts.
During the year, the company has not accepted deposits to meet the
pressing payment obligations. There is no unclaimed/unpaid deposits.
None of the deposits have matured for payment.
The Directors acknowledge with gratitude the co-operation extended by
Government/semi Government authorities. Your Directors also place on
record their appreciation for sincere services rendered by Employees.
FOR AND ON BEHALF OF THE BOARD
Place : Mumbai GHANSHYAMDAS DEORA
Date : 2nd September, 2006 CHAIRMAN