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Adhunik Yarns Ltd.

BSE: 514452 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Adhunik Yarns Ltd
NSE 05:30 | 01 Jan Adhunik Yarns Ltd

Adhunik Yarns Ltd. (ADHUNIKYARNS) - Director Report

Company director report

ADHUNIK YARNS LIMITED ANNUAL REPORT 2007-2008 DIRECTOR'S REPORT To The Members, Adhunik Yarns Limited, Yours Directors have pleasure in presenting the Twenty first Annual Report and Audited Statement of Accounts for the Year ended 31st March 2008. FINANCIAL HIGHLIGHTS: (Rs. In lacs) 2007-2008 2006-2007 Sales and other Income 0.95 1.45 Add: Extraordinary Exceptional items Nil 1067.73 Profit/(Loss) before depreciation and tax (64.20) 1055.62 Less/(Add): Depreciation 19.58 32.40 Profit/(Loss) before tax (83.78) 1023.22 Less/(Add): Tax Adjustments 0.00 0.00 Net Profit/(Loss) after tax (83.78) 1023.22 OPERATIONS: Due to continuous recession in textile industry, shortage of working capital, the manufacturing operation of both the units of the company continued to be suspended during the year also. The turnover and other income recorded Rs. 0.95 lacs as compared to earlier year Rs.1.45 lacs. During the year, the company has incurred loss of Rs.64.20 lacs before depreciation and tax and net loss of Rs. 83.78 lacs. During the previous year, the company has paid off entire OTS amounts to Bank of Baroda & IDBI and the relief amounting to Rs.1067.73 lacs received by the company on OTS in interest and principle has been credited to profit and loss account as an extraordinary exceptional item. DIVIDEND: In view of loss for the year, your directors regret their inability to recommend payment of any dividend for the year. DIRECTORS: 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. REFERENCE TO BIFR: As reported last year, the company's net worth as per the audited accounts as at 31st March 1999 stood fully eroded and accordingly a mandatory reference was made to BIFR under section 15 of the Sick Industrial Companies (Special Provisions), 1985 on 01/10/1999 which is duly registered on 13.10.1999 under case no. 330/99. BIFR appointed IDBI as an Operating Agency for getting the special investigative report for last three financial years. The auditors appointed by IDBI submitted the special investigative report in May 2000. The company was declared sick industrial company by the BIFR in terms of section 3(1)(o) of the Act. The Bench further directed to explore the possibility of change of management but no concrete offer was received for the same. Therefore in view of explored and exhausted all possibilities to rehabilitate the company, the Bench formed a prima facile opinion, vide its order issued on 11th August 2003, that the company is not likely to make its net worth exceed its accumulated losses within a reasonable time while meeting all its due financial obligations, hence not likely to become viable on longterm basia. Therefore the BIFR formed, an opinion, on prima- facie, that it is just and equitable and in public interest that it is wound up u/s 20(1) of the Act and send the matter to the concerned High Court. In the meantime, since the company has reached OTS with Bank of Baroda and IDBI, the proceedings of the DRT and winding up have been suspended. The company sold substantial part of its fixed assets of both the units with a view to pay off entire OTS amounts to IDBI and Bank of Baroda. The company has paid the dues of such secured creditors and received 'no dues' certificates' from Bank of Baroda, SICOM and -IDBI. LISTING: The equity shares of the company are listed on Mumbai, Delhi, Madras and Ahemdabad Stock Exchanges. The annual listing fees have been paid till 1997-98. INSURANCE: Due to continuous financial difficulties only, the company could not get insured its assets and properties. FIXED DEPOSITS: During an earlier year the company has accepted fixed deposits from a relative of the directors. Out of such deposit an amount of Rs. 200000/- are still to be paid however the company is regular in payment of interest. During the year under review, due to payment of OTS, the company had also to take interest free deposit from a firm in which relatives of the directors are partners. 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 2007, the applicable accounting standards have been followed along with proper explanation relating to material departures. ii) That the Directors have selected such accounting policies and applied them consistently and made judgments 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 2007 on a 'going concern' basis. CONVERSATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS OUTGO: Since the company has no manufacturing operations there are no particulars to be furnished with regard to conservation of energy and technology absorption pursuant to section 217(i) (e) of the Companies Act, 1956, read with the Companies (Disclosure of particulars in the Report of Board of1 Directors) Rules 1988. The foreign exchange earnings and outgo were 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 provisions. AUDITORS: 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. AUDITORS' REPORT: The Auditors report is self-explanatory and hence do not require any clarification. APPRECIATION: 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. By Order of the Board For ADHUNIK YARNS LIMITED RADHESHYAM PODDAR CHAIRMAN Mumbai, 11th August 2008.