ESSJAY SYNTHETICS LIMITED
ANNUAL REPORT 2000-2001
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
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.
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.
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-
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.
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.
None of the employee of the Company is concerned in Section 217(2A) of the
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:
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
PLACE: MUMBAI JEETENDRA GADIA
DATE : 10-08-2001 (DIRECTOR)