HITKARI CHINA LTD.
ANNUAL REPORT 2000-2001
Your Directors have pleasure in presenting the Fourteenth Annual Report
together with the Audited Accounts of the Company for the financial year
ended on 31st March, 2001.
During the financial year under review, the company suffered a loss of
Rs.274.20 lacs, after providing depreciation for the year amounting to
Rs.26.30 lass. The loss during the year is mainly due to low turnover,
damage/deterioration of stock /kilns, and incurring of fixed expenses. The
Company has also suffered loss due to inadequate financial support from the
banks and temporary suspension of operations etc. due to labour
absenteeism. The unit is presently inoperative, however, substantive
efforts are being taken to restart operation, especially since the products
enjoy strong brand equity.
The net worth of the company has been completely eroded and in accordance
with the provision of Sick Industrial Companies (Special Provisions) Act,
1985, now the company is a sick industrial company and reference has to be
made before Hon'ble BIFR for rehabilitation of the company.
We are hopefull that with the intervention of the BIFR and relief /
concession from the concerned parries the company would revive in due
Your Directors regret their inability to recommend any dividend for the
year ended 31st March, 2001 in view of the losses during the year under
LISTING OF SHARES:
The shares of your company have been listed with two leading Stock Exchange
viz - The Stock Exchange Mumbai and The Delhi Stock Exchange Association
DEMATERIALISATION OF SHARES:
Consequent upon the passing of the Depository Act, 1996, the shares of the
company being put into compulsory demat segment by the SEBI and the
Governing Board of The Stock Exchange Mumbai required the company to enter
into agreements with National Securities Depository Limited (NSDL) and
Central Depository Services (India) Limited (CDSIL) and establish the
necessary connectivity with both the Depositories. Your company has entered
into agreements with both the above-mentioned Depositories and with RCMC
Share Registry Private Limited (RTA) for Electronic Connectivity to make
its shares available for trading in electronic form.
The Shareholders who are holding Shares in physical form and willing to get
their holdings dematerialised may send their Share Certificates along with
demat request to the companies (RTA). Magnum Business Services (P) Ltd. 35-
A, Santnagar, East of Kailash, New Delhi - 110065.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS
Information pursuant to Section 217(1)(e) of the Companies Act, 1956 read
with the Companies (Disclosure of Particulars in the Report of Board of
Directors) Rule, 1988, and forming part of this report, is not being
furnished due to suspension of operations in the factory.
PARTICULARS OF EMPLOYEES:
During the year under review, the company has not employed any person who
was in receipt of remuneration higher than the sum prescribed under Section
217(2A) of the Companies Act, 1956 read with the Companies (Particulars of
Employees) Rules, 1975.
DIRECTORS RESPONSIBILITY STATEMENT-.
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors wish
to state that:
(i.) In the preparation of the Annual Accounts, the applicable Accounting
Standards have been followed along with proper explanation relating to
(ii.) 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 financial year and of the profit or loss of the
company for the year under review;
(iii.) 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.) The Directors have prepared the Annual Accounts on a going on concern
Your Company believes that Corporate Governance is a voluntary code of
self-discipline. In line with its policy of self-discipline, the Board of
Directors strongly believes that it is very important that the Company
should follow healthy Corporate Governance practices for the attainment of
the highest levels of transparency. accountability and equity, in all
facets of its operations, and in all its interactions with its stakeholders
viz - shareholders, employees, the government and lenders etc. However,
Clause-49 of the Listing Agreement dealing with the Corporate Governance
will be applicable to your Company from the financial year 2002-2003.
Mr. Ved Kapoor, the Director, retires by rotation at the forthcoming Annual
General Meeting and being eligible offer himself for reappointment. Your
Directors recommend for his re-appointment being in the interest of the
The statutory Auditors M/S S.R. Kapur & Co., Chartered Accountants, New
Delhi, are retiring at the conclusion of the ensuing Annual General
Meeting. The Company has received a letter from them to the effect that
their appointment, if made, would be within the limits under Section 224
(1B) of the Companies Act, 1956.
The observations of the Auditors, in the opinion of the Board, are self-
explanatory and do not require further clarifications.
Your Directors wish to place on record their grateful appreciation for the
assistance and co-operation r from the Banners, Financial Institution,
Government Authorities and Shareholders during the year her review.
Further, your Directors express their deep sense of appreciation for the
dedicated and sincere senses rendered by employees of the Company.
FOR AND ON BEHALF OF THE BOARD
Place: New Delhi. MR. VED KAPOOR MR. SATISH MALHOTRA
Date : 30th August, 2001. DIRECTOR DIRECTOR