GLOBAL INDUSTRIES LIMITED
ANNUAL REPORT 2004-2005
Your Directors have pleasure in presenting Tenth Annual Report of the
company for the year ending 31st March 2005.
During the year 2004-2005 the company's financial performance was as under:
(Rs. in Lacs) (Rs. in Lacs)
(Including Increase) - -
Decrease in stock - -
Other Income - -
Loss for the year 0.55 21.39
Loss before Tax (0.55) (21.39)
Provision for Taxation NIL NIL
Loss After Tax (0.55) (21.39)
During the year under review, there has been no further production
activities, since HSIDC has already auctioned the entire project of the
Company including land & building, plant & Machinery and others just at a
throw-away price of Rs.136.00 lacs in the year 2002-03 itself, while
exercising its powers under section 29 of the State Financial corporation
In view of the losses incurred the Directors do not recommend any dividend.
The company has already made arrangements with new owner for keeping the
registered office there itself.
In accordance with the provisions of the companies Act, 1956 and company's
Articles of Association Sh. Saran Kumar, Director retires by rotation and
offers himself for re-appointment.
DIRECTORS' RESPONSIBILITY STATEMENT
As required under section 217(2AA) of the companies Act, 1956, it is hereby
(i) That in the preparation of the Annual Accounts, the applicable
accounting standards have been followed.
(ii) That the Directors have adopted such accounting policies and applied
them consistently and made judgements 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 profit or loss of the
company for that period.
(iii) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities:
(iv) That in view of the takeover of fixed assets and sold under auction by
HSIDC the Annual Accounts have not been prepared on a going concern basis.
M/s. S.S. Bhardwaj & Associates, Chartered Accountants, hold office until
the ensuing Annual General Meeting and offer themselves for re-appointment.
In clause (v) of their report Auditors have mentioned regarding non
provision of interest on Term Loans and working capital Loans amounting to
Rs.81,08,710/-. The interest has not been provided because the financial
position of the company is not in good condition and the annual interest of
Rs.1,03,73,155/- (Rs.81,08,710 for sixth year) has not been paid for last
five years that is why the interest has not been provided for the current
year amounting to Rs. 81,08,710/- and if the same had been provided in
the books the Net Loss would have been increased by these amount(s),
similarly amount for the past six previous years also has not been provided
PARTICULARS OF EMPLOYEES
There was no employee within the limits prescribed u/s 217(2A) of the
Companies Act, 1956 read with the Companies (Particulars of Employee)
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS
AND OUTGOES IN ACCORDANCE WITH THE COMPANIES (DISCLOSURE OF PARTICULARS IN
THE REPORT OF THE BOARD OF DIRECTORS) RULES, 1988.
A. (a, b, c) CONSERVATION OF ENERGY
The company was following strict schedules of servicing and preventive
maintenance of all its energy intensive machineries and equipments
including cold storage machineries until there was takeover and auction of
the project by HSIDC.
No separate costing has been done to measure energy saved, if any, by the
company, Provisions of FORM A are not applicable to the company.
B. TECHNOLOGY ABSORPTION, ADOPTION AND INNOVATION
The company had set up a project for manufacturing cut flowers namely roses
under green house conditions. The company adopted Dutch Technology imported
from M/s Flodac B.V. Holland at a total cost of Rs.30.25 lacs in the year
The technology has been fully absorbed by the company and its produce was
given A1 quality standard in Holland.
C. PARTICULARS OF FOREIGN EXCHANGE EARNINGS AND OUTGOES
There was no foreign exchange earning and outgoing during the year under
The Company has taken effective steps to ensure the compliance of Corporate
Governance by the end of the current financial year.
The shares of the Company are listed at Delhi, Jaipur, Mumbai and Chennai
Stock Exchanges. The Company has not paid any listing fee for the year
2004-05 as the financial position of the company is very weak and there are
no production activities particularly in view of the acquisition and
auction of its plant by HSIDC.
The Directors are happy that the Company had harmonious industrial
relations at all levels of organisation.
Your Directors wish to thank and gratefully acknowledge the valuable
assistance, cooperation and support received by the company from Financial
Institutions, Banks, Govt. Agencies and shareholders of the Company.
For and And on Behalf of Board of Directors
For Global Industries Limited
Saran Kumar Rishi Bhan
Place: New Delhi
Date : 11.08.2005
MANAGEMENT DISCUSSION AND ANALYSIS
The Company started operation in July 1995. In the year 1997, there was a
sudden increase in the freight charges which formed more than 50% of the
total cost of production of cut flowers. Consequently, the price of cuts
flowers could not be increased because of severe adverse market conditions.
Thereafter the company started incurring heavy losses and could not even
pay interest to the concerned financial institutions / banks, which
resulted in defaults in the payment of dues to the banks and financial
institutions. There were also other infrastructural bottlenecks in the
floriculture industry. Tata Consultancy Services was appointed by Govt. of
India. Global Industries Ltd. was selected as one of the viable unit for
rehabilitation package. The Govt. of India approved the recommendations as
suggested by Tata Consultancy. The company was asked to submit the
rehabilitation proposal to the lead financial institution based on
recommended parameters. The Company submitted its proposal with
proportionate contribution from promoters to HSIDC for approval. HSIDC
always rejected the various proposals of the company on one or other
grounds. Ultimately HSIDC while exercising its undisputed powers auctioned
the company's entire project together with land and buildings situated at
Sohna, at a throwaway price of Rs.136.00 lacs.