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Essjay Synthetics Ltd.

BSE: 514466 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
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Essjay Synthetics Ltd. (ESSJAYSYNTHETIC) - Director Report

Company director report

ESSJAY SYNTHETICS LIMITED ANNUAL REPORT 2000-2001 DIRECTORS REPORT To, The Members of ESSJAY SYNTHETICS LIMITED Your Directors have pleasure in presenting their Eighteenth Annual Report together with the audited accounts for the year ended 31st March 2001. A. OPERATION AND PERFORMANCE The company has done job work for a single party during the year. B. FINANCIAL RESULTS The operations of the company for the year ended as on 31st March 2001 have resulted in a loss of Rs.32.59 Lakhs as compared to Loss of Rs.146 Lakhs as compared the Loss of the previous year. However a major portion of the loss is due to depreciation and cash loss was minimal. C. MANAGEMENT DISCUSSION AND ANALYSIS REPORT: During the year the bank has filed suit in Debt Recovery Tribunal to recall its out standing dues from the company. The company has become a non performing asset on 30th June 1998 due to the misconduct and bad management of the Bank. The company had submitted a proposal to the bank for change of working capital facilities of sanction letter No 982. Received on 6th July 2000. As per statement and justification given by the management, the interest on outstanding dues for the current year has not been provided because the dispute is to be settled amicably by Debt Recovery Tribunal. The management has stated that the proposal for rehabilitation was under process by it's banker M/s Central Bank of India since Aug. 99, after the techno feasibility report conducted by bank's appointed professional, processing of the proposal after verification by the visit of the department, to the unit at silvassa and verification of records by Central Bank of India. The rehabilitation proposal was finally sanctioned on 6th July 2000. As there was some changes in market conditions, the company was not confident of achieving the projections as stated in their rehabilitation proposal, the company had requested for interchangeability of its working capital facilities. The bank asked the company to restart the unit with existing facilities, and the proposal could be considered after some time, the company's justified stand was that the company would not be able to generate cash profit and hence did not want to start without the change of facilities. As the bank disagreed and the bank sent a recall notice of it's outstanding dues and later filed suit with DRT. The management stated that, had the bank not interfered with the day to day working of the company, it would not have become sick and also a Non Performing Asset. The company wants to settle its dues peacefully and amicably and the matter is under the purview of DRT. The Fixed Deposits lying with the bank as margin money deposit against credit facilities has been adjusted against outstanding dues without giving prior and proper notice or information to the company. The company wanted the fixed deposit to put into a separate account in the bank till the compromise proposal could be worked out. The company wanted to adjust amount as per the compromise proposal but was not given the opportunity. D. DIVIDENDS The performance of your company was adversely affected due to recessionary conditions prevailing in the Indian economy. In view of this the directors are unable to recommend dividend during the current year. E. DIRECTORS Pursuant to Article of Association of the company, Mr. M. L. Jatia retires by rotation at Annual General Meeting and being eligible himself for re- appointment. F. AUDITORS M/S P. U. JAIN & ASSOCIATES, Chartered Accountants, MUMBAI, the statutory Auditors of the Company, retires at the conclusion of the A.G.M. and are eligible for re-appointment. You are requested to re-appoint the Auditors and to fix their remuneration. G. DEPOSITS The Company has not accepted any deposits from public hence provisions of sections 58A of the Companies Act, 1956 and para 4 (A) (xiii) of the order are not applicable. H. EMPLOYEES None of the employee of the Company is concerned in Section 217(2A) of the Company Act. I. DISCLOSURE OF PARTICULARS IN RESPECT OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUT GO: A) Conservation of Energy a) Energy Conservation measures taken : Nil b) Additional Investments and Proposals if any being implemented for reduction of consumption of energy : Nil c) Impact of Measures (a) & (b) above for reduction of energy consumption and consequent impact on the cost of production of goods: Nil B) Technology Absorption Research and Development Technology absorption, adaptation and innovation: Not applicable. C) Foreign Exchange Earning & Outgo: NIL J. DIRECTORS RESPONSIBILITY STATEMENT: Pursuant to Section 217(2AA) of the Companies (Amendment) Act 2000, the Directors confirm that: 1. In the preparation of annual accounts, the applicable accounting standards have been followed. 2. Appropriate accounting policies have been selected and applied consistently and judgements and estimates that are reasonable and prudent have been made so as to give a true and fair view of the statement of affairs at the end of the financial year and of the profit of the Company for the financial year ended 31st March 2001. 3. Proper and sufficient care has been taken 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. 4. The Annual Accounts have been prepared on a going concern basis. By the Order of the Board of Directors Sd/- PLACE: MUMBAI JEETENDRA GADIA DATE : 10-08-2001 (DIRECTOR)