Your Directors present Sixteenth Annual Report and Audited Statement of
Accounts of the Company for the year ended 31st March, 2003.
1. FINANCIAL RESULTS
1.4.2002 to 1.4.2001 to
(Rs. in Lakhs) (Rs. in Lakhs)
Profit/fLoss) for the year (2.96) (6.50)
Less : Depreciation for the year (6.06) (6.06)
Profit/(Loss) after depreciation (9.02) (12.56)
Your Company has not recorded any income during the year.
Your Company has incurred a loss of Rs. 9.02 lacs after charging
depreciation of Rs. 6.06 lacs as against the previous years net loss
of Rs. 12.56 Lacs.
During the year under review The State Bank of India (SBI), operating
agency, has forwarded the offers received from parties for takeover of
the management of the company to BIFR. BIFRs response is awaited.
3. EXPANSION-CAPITAL PROJECTS
Since the Company has become sick industrial undertaking and as a
consequence of suspension of operations at Companys plant at Mahad,
question of Expansion/Capital Projects does not arises.
4. PUBLIC DEPOSITS
During the year under report the company has not accepted/renewed any
Fixed Deposits under the Companies (Acceptance of Deposits) Rules, 1975
from the Shareholders and public. As on 31.3.2003 and till the date of
this report 8 deposits amounting to Rs. 34,000/- have matured but had
not been claimed.
The company has written to these depositors requesting them to forward
the duly discharged receipts for repayment of the deposits.
5. INDUSTRIAL RELATIONS
During the year the Lockout in the factory continued. The lockout had
been declared with a veiw to protect the assets in the factory after
labour unrest commenced.
The Commissioner of Labour is reviewing the progress of BIFR every
quarter as directed by Bombay High Court.
Smt. N.P. Deshmukh was appointed as wholetime Director for a period of
5 years from 1st March, 1998 and as such ceased to be a wholetime
Director fo the company from 1st March, 2003. However, she continues to
be a Director of the company, liable to retire by rotation. Under
Article 166 of the Articles of Association of the Company Smt. N.P.
Deshmukh and Dr. R. S. Shah retire by rotation and being eligible offer
themselves for reappointment.
7. DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217 (2AA) of the Companies
Act, 1956 with respect to Directors Responsibility Statement, it is
hereby confirmed :
i) that in the preparation of annual accounts for the financial year
ended 31st March, 2003, the applicable accounting standards have 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 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 and of the
profit and loss of the Company for the year under review.
iii) that the 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) that the Directors have prepared the accounts for the financial
year ended 31st March, 2003 on a `going concern basis.
8. PARTICULARS OF EMPLOYEES
There were no employees covered under Section 217 (2A) of the Companies
Act, 1956, read with the Companies (Particulars of Employees) Rules
1975, who were in receipt of remuneration in excess of the prescribed
9. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO.
Since the Company has suspended its activities and has been declared a
sick industrial unit, no particulars under this heading are available.
Members are requested to appoint Auditors for the current year and fix
their remuneration. M/s. Thanawala & Co., Chartered Accountants, retire
at the conclusion of the ensuing Annual General Meeting and being
eligible, offer themselves for reappointment. The Auditors have
furnished to the company the requisite certificate under section 224
(1-B) of the Companies Act. 1956.
Your Dirctors wish to place on record their appreciation for the
valuable assistance and guidance given to them by the State Bank of
India. Your Board also acknowledges valuable assistance given to them
by various Central and State Government Departments and Corporations.
Finally we owe sincere gratitude to all shareholders for their support.
For and on behalf of the Board
For VARUN POLYMOL ORGANICS LIMITED
Place: Mahad P. D. DESHMUKH
Dated: 28.4.2003 Chairman & Managing Director
A-4, M.I.D.C., Mahad,