ADHUNIK SYNTHETICS LIMITED
ANNUAL REPORT 2007-2008
ADHUNIK SYNTHETICS LIMITED
Yours' Directors have pleasure in presenting the 26th Annual Report and
Audited Statement of Accounts for the year ended 31st March 2008.
(Rs. in lacs)
Sales and other Income 137.63 204.12
Add: Extraordinary Exceptional Item 696.23 0.00
Profit/(loss): before provision of
Depreciation & Tax 646.91 (1064.20)
Less/(add): Provision for Depreciation (20.04) (22.56)
Profit/(loss) before tax 626.87 (1086.76)
Less/(add): Tax adjustment 1.25 0.74
Less/(add): Provision for Doubtful
Debts/advances 0.00 (11.95)
Profit/(loss) after tax 625.62 (1097.97)
The year under review resulted in the net profit of Rs. 625.62 lacs, after
taking the relief from OTS amounting to Rs. 696.23 lacs as compared to net
loss of Rs. 1097.97 lacs-during the previous year. As was in earlier years,
the manufacturing operations at Jalgaon unit were remained suspended and
the weaving units were in operation mainly on job work basis due to
shortage of working capital.
In view of losses, the Board is not recommending any dividend for the year
ended 31st March 2008.
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company Shri Pradeep Poddar retires by
rotation and being eligible offer himself for re-appointment.
Due to continuous financial difficulties, no assets of the company have
been insured against the fire and other risks.
The equity shares of the company are listed on Mumbai, Delhi, Kolkatta,
Chennai and Ahemdabad Stock Exchanges. The annual listing fees have been
paid till (a) 1997-98 for Kolkatta, Chennai and Ahemdabad Stock Exchanges
(b) 1998-99 for Dehli Stock Exchange and (c) 2000-2001 for Mumbai Stock
The company has accepted a deposit from. a firm in which relatives of the
directors are partner to settle the OTS amount of secured creditors however
technically it is in contravention of provisions of section 58A of the
Companies Act 1956.
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to Section 217 (2AA) of the Companies Act, 1956 with respect to
Directors' responsibility statement, it is hereby confirmed:
i) That the preparation of accounts for the financial year ended 31st
March 2008, the applicable accounting standards have been followed along
with proper explanation relating to material departures.
ii) The Directors' have selected such accounting policies and applied them
consistently and made judgements and estimates that were reasonable and
prudent so as to give true and fair view of the state of affairs of the
company at the end of the financial year and the profit or 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 irregularities.
iv) That the Directors' have prepared the accounts for the financial year
ended 31st March 2008 on a 'going concern' basis.
PROVISION OF SICA, 1985:
As reported in last year, in the hearing before BIFR on 6th October 2004,
direction were given to forward copies of orders / proceedings to the
concerned High Court for further necessary action for winding up the
company. The Honourable High Court, Mumbai issued notification to official
liquidator for appointing him as provisional liquidator and the hearing
before the liquidator is in process. The company, in view of OTS with
secured creditors, is in the process of filing an appeal before the
honourable High Court, Mumbai to give permission for sale of its fixed
assets to clear the dues payable under OTS.
In respect of liabilities provided in the audited accounts further to add
that pursuance to the heavy losses, the company suspended its yarn
manufacturing Works / functioning in its units / factories long back and in
lieu of no improvement in the textile market but reactant slack down, it
has closed down yarn manufacturing units / factories long back and
approached to BIFR in the year 2000-2001 and subsequently BIFR declared the
company sick industrial undehaking.
Therefore it is pertinent to say that the liabilities of the company
towards all financial institution / banks, of its principles amounts,
interest and compound interest along with rate inconceivable / untenable
and can not be taken as the admitted liabilities but under scanner /
scrutinisation / arbitrated / prima-facie and subject for the 4erdict of an
appropriate Court of Law as per provision i.e. the liabilities stand as
disputed / integrated.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
Information pursuant to section 217(i) (e) of the Companies Act, 1956, read
with the Companies (Disclosure of particulars in the Report of Board of
Directors) Rules 1988 is given here below:
A. CONSERVATION OF ENERGY:
As in the past, the company continues its efforts to improve methods of
energy conservation and utilisation.
The information of power and fuel consumption and cost per unit of
production is furnished in the prescribed form here below:
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY:
Units Current Previous
A. Power and Fuel Consumption:
Unit (KWH) Thousands 708.79 764.55
Total Amount Rs. in lacs 25.33 24.93
Average Rate Rs. per unit 3.57 3.26
2. High Speed Diesel
Quantity Kilo Litres 3.056 5.705
Total Cost Rs. in lacs 2.30 2.08
Average Rate Rs. per Ltrs. 75.38 36.51
B. Consumption per unit of
1. Electricity (KWH)
Cloth 100 mtrs 37.78 39.47
Yarn 100 kgs. - -
2. Light Speed Diesel (litres)
Cloth 100 mtrs 0.16 0.29
Yarn 100 kgs. - -
B. TECHNOLOGY ABSORPTION:
The Company is doing research and development for improvement in shades of
yams and fabrics as routine activities.
C. FOREIGN EXCHANGE EARNING AND OUTGO:
There is no foreign exchange earning during the year and foreign exchange
outgo is Rs. Nil (Rs. Nil).
PARTICULARS OF EMPLOYEES:
Particulars of employees under section 217(2A) of the Companies Act, 1956
read with the Companies (Particulars of Employees) Rule 1975 are not
attached with this report as no employee comes under the purview of these
M/s. R.S. Agrawal & Associates, Chartered Accountants, the Auditors of the
Company are retiring at the forthcoming Annual General Meeting. The members
are requested to appoint the auditors.
The Auditors report is self-explanatory and hence do not require any
The Board of Directors place on record their appreciation for the support
and co-operation received from the Government, Bankers, IDBI, SICOM,
Dealers, Suppliers, Employees and you the shareholders.
For and on behalf of the Board
For ADHUNIK SYNTHETICS LIMITED
Date : 11th August 2008.