BIRLA TRANS ASIA CARPETS LIMITED
ANNUAL REPORT 2009-2010
Your Directors have pleasure in presenting the 35th Annual Report on the
operations of the Company together with the Audited Statement of Accounts
for the financial year ended on March 31, 2010.
(Rs. in lacs)
For the year ended
Net Sales and other Income 171.60 162.59
Total Expenditure 288.61 250.35
Profit/(Loss) before interest (117.01) (87.76)
depreciation & prior period adjustments
Interest 22.46 57.18
Depreciation 29.54 29.23
Prior Period Adjustments 0.00 0.04
Net Profit/(Loss) before Tax (169.19) (174.21)
Provision for FBT 0.00 1.32
Net profit/(loss) after tax (169.19) (175.53)
Surplus/(Deficit) b/f (3455.52) (3279.99)
Surplus/(Deficit) c/f (3624.75) (3455.52)
During the year the company has achieved net sales of Rs. 166.02 Lacs as
against Rs.150.75 Lacs in the previous year. The Company has incurred a net
loss of Rs. 169.19 Lacs during the year as against loss of Rs. 175.53 Lacs
in the previous year.
During the period under review, the Company has produced 19,772 sqm. of
carpets and and sold 31,296 sqm. of carpets.
Owing to rationalization of work force and implementing measures for
rehabilitation, the company could achieve improved performance in compared
to previous years. On completion of restructuring and grant of relief
package as proposed by the Company to BIFR, OA and concerned parties the
performance is expected to further improve.
REFERENCE BEFORE BIFR
The Company pursuant to the directives of BIFR, New Delhi in last hearing
had submitted comprehensive proposal rehabilitation seeking need based
relief and concessions for expeditious revival of the Company. Punjab
National Bank the Operating Agency has discussed the proposal in Joint
meeting and forwarded its report that on conversion of Inter Corporate
Deposits into equity and on grant of relief and concession, the company's
networth is expected to be positive on implementation of the rehabilitation
In view of accumulated losses your Directors are not in the position to
recommend any dividend for the period under report.
Mr. R.S. Juneja, Director of the Company, retires by rotation and being
eligible offers himself for re-appointment.
The Company has not accepted any deposit within the meaning of Section 58A
of the Companies Act, 1956 and the rules made thereunder.
M/s LKM & Co, Chartered Accountants, Statutory Auditors of the Company hold
office till the conclusion of the forthcoming Annual General Meeting and
are eligible for re-appointment.
With respect to the Auditor's qualification referred to in Clause (vi) (a)
we wish to inform you that the promoters have proposed to convert ICD into
equity shares of the company. Hence non provision of Interest and other
observations are self explanatory. The company had proposed payment of
overdue liabilities in suitable installments seeking relief and concessions
as per prevailing guidelines in scheme submitted to BIFR, New Delhi.
The Company enjoyed harmonious relations with employees through out the
CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY, ABSORPTION
AND FOREIGN EXCHANGE EARNING AND OUTGO.
a. Conservation of Energy
The operation involves low level of energy consumption. Wherever possible
energy conservation measures have already been implemented. However,
efforts to conserve and optimize the use of energy through improved methods
and other measures will further continue.
b. Absorption of Technology
The Technology has been fully absorbed by the Company.
Foreign Exchange Earnings & Outgoings
During the year under review, details of Foreign Exchange earnings and
outgo are as follows:
Foreign Exchange Earnings : NIL
(In Indian Rupees)
Foreign Exchange Outgo :
(In Indian Rupees)
Import of Machinery : Rs. 1,52,96,450/-
As per Clause 49 of the Listing Agreement entered into with the Stock
Exchanges, Corporate Governance is not applicable to the Company as the
paid-up capital of the company is less than Rs. 3 Crores but still your
company follow Corporate Governance of highest standards.
PARTICULARS OF EMPLOYEE'S
None of the employees is in receipt of remuneration for the year, which in
aggregate was more than the limit prescribed under Section 217 (2A) of the
Companies Act, 1956, read with the Companies (Particulars of Employees)
Rules, 1975 as amended.
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
1. That in the preparation of the annual accounts for the financial year
ended 31st March 2010, the applicable accounting standards had been
followed along with proper explanation relating to material departures;
2. That the Directors had selected such accounting policies and applied
them 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 loss of the Company for
3. That the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the act for safeguarding the asset of the Company and for
preventing and detecting fraud and other irregularities; and
4. That the Directors had prepared the annual accounts for the financial
year ended 31st March, 2010 on a going concern basis.
Your Directors acknowledge with gratitude the continuing co-operation and
assistance rendered by the Central Government, State Government, Financial
Institutions, Banks, Suppliers and other organizations in the working of
The Directors also wish to place on record their deep sense of appreciation
for the dedicated services rendered by the officers, staff and (workmen of
The Board takes this opportunity to express its deep gratitude for the
continuous support received from the shareholders.
For and on behalf of the Board of Directors
Arun Singhi Purushottam Sharma
Dated: 30th July, 2010.