22ND DIRECTORS' REPORT FOR THE YEAR ENDED 31ST MARCH, 2006
Your Directors have pleasure in presenting the TWENTY SECOND ANNUAL REPORT
together with Audited Accounts of the Company for the year ended 31st March,
Rs. Lakhs Rs. Lakhs
Total Income 121.52 100.94
Gross Profit/ Loss (4.70) 0.10
Less: Depreciation 4.10 4.44
Provision for Taxation NIL NIL
Previous Year Adjustment (Taxation) NIL NIL
Profit/Loss after Taxation (8.80) (4.34)
Add: Loss Brought forward from previous year (85.97) (81.63)
Profit & Loss Appropriation Account (94.77) (85.97)
The Directors regret their inability to recommend dividend for the year 2005-
2006 due to inadequacy of profits.
The Company's operating results for the year are showing Net loss of Rs.8.80
Lacs against Rs.4.34 Lacs for the last year. Due to developments in
manufacturing technology our machines have become obsolete and out dated. We are
facing stiff competition from large scale manufacturers who have put up latest
machines with higher production capacities. This has resulted in stagnation of
our production and sales of Pet Preforms and left no margins for profits.
The Company has not accepted any Fixed Deposits under section 58A of the
Companies Act 1956 during the year and Note No (xiii) in the annexure to the
Auditors Report is self explanatory.
In accordance with the provision of the Companies Act, 1956 and the Company's
Articles of Association, Shri. R.N. Shah Director of the company retires by
rotation and being eligible offers himself for re-appointment.
M/s Motilal & Associates, Chartered Accountants, Mumbai retire with the
conclusion of the Twenty Second Annual General Meeting and are eligible to offer
themselves for reappointment.
PARTICULARS OF EMPLOYEES:
Information pursuant to Section 217 (2A) of the Companies (Particulars of
Employment) Rules, 1975 as amended. by the Companies Amendment Act, 1988 not
applicable to company as no employee was drawing salary more than 1,00,000/- p.
m. if employed for the part of the year or annual salary of Rs.12,00,000/-.
DIRECTORS' RESPONSIBILITY STATEMENT
The Directors confirm:
1. That in the preparation of the annual accounts, the applicable accountings
standards have been followed.
2. That the Directors have selected such accounting policies and have applied
then consistently and made judgments 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 and loss of the
Company for that period.
3. That the Directors have taken proper and sufficient care for the maintenance
of adequate accounting records in accordance with the provisions of the Company
Act for safeguarding the assets of the Company and for preventing and detecting
fraud and other irregularities.
4. That the Directors have prepared the annual accounts on a going concern
Your Directors wish to place on record their appreciation for the support and
co- operation extended by the Bankers, Executives and Staff of the Company.
Signed on : 29th July, 2006