ANNUAL REPORT 2007-2008
Your Directors wish to place before you the 20th Annual Report and Audited
Accounts for the Financial Year ended on 31st March, 2008.
The summarized financial results of the company have been given below:
(Rs. In Lacs)
PARTICULARS Current Year Previous Year
Amount Rs. Amount Rs.
Sales and Other Income 793.90 4472.13
Depreciation and Taxes (818.64) (717.96)
Less: Depreciation provided
during the year 473.39 1091.89
Profit/(Loss) before Tax (1292.03) (1809.85)
Less: Provision for Taxation (FBT) 2.40 2.97
Provision for Deferred Tax (0.99) (85.65)
Profit/(Loss) after Tax (1293.44) (1727.17)
Less: Prior Period Adjustments 24.87 29.96
Net Profit/(Loss) for the Year (1318.31) (1757.13)
Add: Profit/(Loss) brought forward (4153.84) (2396.71)
Balance Carried to Balance Sheet (5472.15) (4153.84)
During the Year under review, the Optical Media Division has stopped its
production because of unprecedented liquidity crises of the Company as well
as continuous reduction in the Selling price of Optical Media Products.
Thus, the said division was unable to recover its full variable cost and
accordingly, it has been decided to stop the production of Optical Media
Division to arrest further losses. However, since last couple of months,
the market position of the optical media products is slightly improved upon
but, because of liquidity problems, the company could not commence the
production of Optical Media Division. More go, the computer consumer
division has also shown remarkable decline in its top line becouse of the
liquidity position of the company.
The conpany's reference with BIER/AAIFR is still pending.
In the Financial Year 2007-08, the Company has achieved total net sales of
Rs. 782.38 Lacs as against Rs. 4415.76 Lacs for the year 2006-07
In terms of Division-wise Safes,-the break-up is as under:
(Rs. in lacs)
% of Change
Net Sales over 2006-07
Optical Media Division (OMD) 20.79 1897.07 (99%)
Computer Consumables 761.59 2518.69 (70%)
Total 782.38 4415.76
Considering the government intervention for DVD-R and CD-R, anti dumping
duty is imposed on Optical Media products and accordingly there is a
positive impact on the demand of Optical Media products in th,: country
This has also increased the net margin for Optical Media products but, due
to the unprecedented liquidity crises faced by the company, your Directors
could not commence the operations of the said division for the year under
review. However, there are good chances that the production shall be viable
in the near future and the company will be able to generate reasonable cash
On the other hand, the company's media and stationery division has good
future outlook, becouse the company shall be able to provide cheque books
to various banks as it is already registered with Reserve Bank of India as
authorised printer for printing of the cheque books. Again, the financial
position of the Company did not allow it to take the full advantage of its
Computer Stationary Products.
In view of the loss incurred by the Company during the year 2007-08, your
directors do not recommend any dividend on the equity share capital or
preference shares of the company for the financial yea ending on 31st
Auditors have qualified the report by stating that:
a) No confirmation of balance:
Due to the sickness of the company and inability to make the payment to the
suppliers, banks and institutions, the company is unable to receive
positive response and therefore, partial balance cannot be reconciled.
b) No provision of Leave Encashment
Your Auditors have also qualified the report by stating that the company
has not provided for leave encashment as required by Accounting Standard-
15. It is to be stated that your company's following cash system for leave
encashment and therefore, no provision has been made in the books of
c) Classification of NPA by Bank & IDBI
As your company's liquidity position has been worsened, it was difficult to
make the payment to the banks and idbi and therefore, there are delays and
defaults resulted in non performing assets.
All other qualifications of the auditors are self explanatory.
LISTING AND LISTING FEES
Company has got its Equity Shares listed on Ahmedabad and Mumbai Stock
Exchanges. Company has paid the listing fees.
Shri Ravindra B Shah and Shri Gautam D Broker, Directors of the Company
retire by rotation at the forthcoming Annual General Meeting and being
eligible offer themselves for re-appointment.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirement under section 217(2AA) of the Companies Act,
1956, with respect to Directors' responsibility, it is hereby confirmed
i) That in the preparation of the accounts for the financial year ended
3131 March, 2008, the applicable Accounting Standards have been followed
along with proper explanation relating to material departure;
ii) That 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 a true and fair view of the state of affairs of
the Company at the end of the year and of 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 Record 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 `going concern' basis.
Your Company has been duly complying with the requirements of clause 49 of
the Listing Agreement dealing with Corporate Governance and details are set
out in the Annexure to this Report.
DEMAT OF SHARES OF THE COMPANY
Company has already dematerialised its Equity Shares and as on date 65.63%
of share are in demat form. Investors/shareholders are requested to make
use of the facility provided by the Company for dematerialisation of shares
for which arrangements have been made with M/s. Intime Spectrum Registry
Pvt. Ltd. of C-13, Pannalal Silk Mill Compound, LBS Marg, Bhandup (West),
Mumbai-400078, who are the connectivity agent.
The Auditors of the Company, M/s. Parikh & Majmudar, Chartered Accountants
retire at the conclusion of the ensuing Annual General Meeting and are
eligible for re-appointment. They have furnished a certificate that their
appointment, if made shall be within the limits laid down under Section
224(1 B) of the Companies Act, 1956.Your Directors recommend the re-
appointment of M/s. Parikh & Majmudar as Auditors of the Company.
INFORMATION REGARDING CONSERVATION OF ENERGY ETC. AND EMPLOYEES
Information required under section 217(1)(e) of the Companies Act. 1956
read with Rule 2 of the Companies (Disclosure of Particulars in the Report
of the Board of Directors) Rules, 1988 and information as per Section 217
(2A) of the Companies Act. 1956 read with the Companies (Particulars of
Employees), Rules, 1975, as amended from time to time, form part of this
report. However, as per the provision of Section 219(1) (b) (iv) the Report
and Accounts are being sent to all the shareholders of the Company
excluding the information relating to conservation of energy, technology
absorption and foreign exchange earnings and outgo and the statement of
particulars of employees. Any shareholder interested in obtaining such
particulars may inspect the same at the Register Office of the Company.
The Board of Directors wish to place on record their deep appreciation and
gratitude for the services rendered by the Workers, Staff and Executives of
the Company. The Board of Directors also convey their gratitude to the
Investing Shareholders, Customers, Suppliers, Banks, Financial Institutions
and various Private and Government Agencies for their continued co-
operation and confidence reposed in the company.
For and on behalf of the Board
Dinker M. Broker
Date : 28th June, 2008