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Global Industries Ltd.

BSE: 530553 Sector: Others
NSE: N.A. ISIN Code: N.A.
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Global Industries Ltd. (GLOBALINDS) - Director Report

Company director report

GLOBAL INDUSTRIES LIMITED ANNUAL REPORT 2004-2005 DIRECTOR'S REPORT Your Directors have pleasure in presenting Tenth Annual Report of the company for the year ending 31st March 2005. Financial Results: During the year 2004-2005 the company's financial performance was as under: (Rs. in Lacs) (Rs. in Lacs) 2004-2005 2003-2004 Turnover (Including Increase) - - Decrease in stock - - Other Income - - Loss for the year 0.55 21.39 Before Depreciation And Interest Loss before Tax (0.55) (21.39) Provision for Taxation NIL NIL Loss After Tax (0.55) (21.39) OPERATIONS 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 Act, 1951. DIVIDEND In view of the losses incurred the Directors do not recommend any dividend. REGISTERED OFFICE The company has already made arrangements with new owner for keeping the registered office there itself. DIRECTORS 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 stated. (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. AUDITORS 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 for. 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) Rules, 1975. 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 1994-95. 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 review. CORPORATE GOVERNANCE The Company has taken effective steps to ensure the compliance of Corporate Governance by the end of the current financial year. LISTING 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. INDUSTRIAL RELATIONS The Directors are happy that the Company had harmonious industrial relations at all levels of organisation. APPRECIATION 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 Sd/- Saran Kumar Rishi Bhan Directors 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.