The directors present 16th Annual Report and Audited Accounts for the
year ended 31st March, 2008 together with the reports of the Auditors
and Directors thereon.
(Rs. In lakhs)
PARTICULARS 2007-08 2006-07
Sales and Other Income 71.65 8.83
Profit/(Loss) before depreciation 8.11 3.09
Provision for depreciation 0.64 4.45
Provision for deferred tax - -
Prior period adjustments 24.63 38.15
Extra Ordinary Items 10.32 -
Provision for taxation Including FBT 0.07 0.08
Profit/(Loss) after tax (6.91) 45.77
Add: Balance brought forward
from previous year. (906.44) (860.67)
Balance carried to Balance Sheet (913.36) (906.44)
During the year under review, your company has achieved gross turnover
of Rs.71.65 lakhs as against Rs. 8.83 in the corresponding previous
Your Company has now concentrated on trading activities in the current
year. However, your directors have chalked out a strategy to directly
import the yarn and other textile goods from cheap sources such as
China and Korea. This would lead to some profitable business. Your
directors have also thought of changing the business activities to real
estate field and are taking necessary action for the same.
Shri Dinkar H. Patel, Director of the company would retire and being
eligible offers himself for reappointment. Particulars of directors
seeking re-appointment are given in the Corporate Governance.
EXPLANATIONS ON THE REMARKS/OBSERVARIONS OF AUDITORS
For the observations/qualifications made by the auditors, your
directors submit their explanations as under:
1. Since the companys turnover is increased above Rs. 40 lakhs, the
company has depended on the internal staff members for checking and no
externa! agency was appointed to carry out internal audit to save on
2. Since the company has no production, no cost record Is required to
be maintained under section 209(l)(d) of the Companies Act 1956.
3. As per the consistent practice followed by the company, the
gratuity continued to be accounted for on cash basis. It Is observed by
the management that most of the employees do not put in qualifying
services for gratuity hence the same could not be provided for.
A. The remarks on the reconciliation of sundry debtors and creditors,
etc. does not call for special remarks as it Is customary to get
balances confirmed and/or reconciled which hardly affects the financial
5. As consistently followed from year to year, the management firmly
believes that for the assets not put to use during the year, no
provision for the depreciation Is justified. However for the use of
assets except plant & machinery the depredation to the extent of Rs.
64,486/- is provided for in the books.
6. For the deferred tax - non compliance with AS 22, the management
firmly believes that in the near future, there is no possibility of
writing off the deferred tax assets.
For the impairment of assets no provision is made as during the year
some part of the assets were disposed off and would be treated
accordingly in the current years accounts, reflecting a true and fair
view, this year.
DIRECTORS RESPONSIBILITY STATEMENT
As required by Section 217(2AA) of the Companies Act, 1956, your
directors confirm that:
1. In the preparation of the Annual Accounts, the applicable
accounting standards have been followed.
2. your directors have selected such accounting polides and applied
them consistently and made judgments and estimates that are reasonable
and prudent as to give a true and fair view of the state of affairs of
the company as on 31st March, 2008 and the Profit and Loss Account for
the year ended on that date (save and except provision of depreciation)
3. 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 the frauds and other
4. The directors have prepared the annual accounts on a going concern
PARTICULARS OF EMPLOYEES
Information pursuant to provisions of Section 217(2A) of the Companies
Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 as
amended is NOT APPLICABLE as no employee of the company was in receipt
of remuneration at the prescribed rate during the year under review.
PARTICULARS OF ENERGY CONSERVATION ETC.
Since the company was not engaged Into any production activities but
only local trading, the information required by Section 217(l)(e) read
with Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules 1988, being not applicable, is not furnished.
M/s. Natvarlal Vepari & Co; Chartered Accountants retire at the ensuing
Annual General Meeting and being eligible offer themselves for
re-appointment The observations made by auditors in their report are
explained herein above.
Shareholders are requested to bring their copy of the Annual Report
alongwith them at the meeting as copies of the Report will not be
distributed at the meeting.
Regd. Office: By Order of the Board
Nutan Estate, for OVERSEAS SYNTHETICS LIMITED
Vasta Devdi Road,
SURAT - 395 004. Sd/-
Place: Surat Dinkar H. Patel
Dale : 12/08/2008 Director