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BSE: N.A. Sector: N.A.
NSE: N.A. ISIN Code: N.A.
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. () - Director Report

Company director report

NATIONAL FLASK INDUSTRIES LIMITED ANNUAL REPORT 2009-2010 DIRECTOR'S REPORT To, The Members, Your Directors hereby present their 23rd Annual Report on the affairs of the Company together with the Audited Statement of Accounts for the year ended 31st March 2010. FINANCIAL RESULTS: (Rupees in Lac) Year ended Year ended 31-03-2010 31-03-2009 Sales for the year - 1.73 Profit/ (Loss) before Interest, Depreciation and Tax 91.68 (25.69) Less: Interest 1883.08 1601.90 Profit/ (Loss) before Depreciation and Tax (1791.38) (1627.59) Less: Depreciation 40.47 43.62 Profit (Loss) before Taxation (1831.85) (1671.21) Less: Provision for Taxation NIL NIL Less: Fringe Benefits Tax 0.04 0.16 Less: Prior year adjustments 4.35 0.86 Less: Loss on Sale of Assets 0.00 0.03 Less: Provision for Deferred Tax Liability/ Assets (8.30) (8.40) Profit/(Loss) after Taxation (1827.94) (1663.86) Add: Balance brought forward (10841.97) (9178.11) Profit/(Loss) Carried to Balance Sheet (12669.91) (10841.97) OPERATION: The Company being a sick-industrial Company, there is no turnover during the year ended. The Company due to heavy loss has become sick-industrial Company. The Company has been registered with the Board for Industrial and Financial Reconstruction (BIFR) with revival plan to make the Company once again healthy. The company has filed civil suit for damages , under law of torts to the tune of Rs. 1904.17 crores against the consortium bankers, The Saraswat Co- operative Bank Ltd., The Shamrao Vithal Co-operative Bank Ltd., The North Kanara GSB Co-operative Bank Ltd. and The Cosmos Co-operative Bank Ltd. The same civil suit is pending before Honourable Civil Court Silvassa for adjudication. Hence in view of the above facts and circumstances, at present, there is 'No Debt Due' to all the above mentioned banks. DIVIDEND: Due to heavy loss suffered by the Company, your directors regret their inability to recommend any dividend for the year under review. FIXED DEPOSIT: The Company has not accepted any deposits from the public during the year under review. There has not been any unclaimed or unpaid deposit as on 31st March 2010. DIRECTORS' RESPONSIBILITY STATEMENT: Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956, with respect to Directors' Responsibility Statement, it is hereby confirmed: (i) That in the preparation of the accounts for the financial year ended 31st March, 2010, the applicable accounting standards have been followed along with explanation relating to material departures; (ii) That the Directors have selected such accounting policies and applied them consistently and made judgments 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/loss of the Company for the year under review; (iii) That the Directors have taken proper and sufficient care for the maintenance of adequate accounting record in accordance with the provisions of the Companies Act, 1956 for safe guarding the assets of the Company and for preventing and detecting fraud and other irregularities. (iv) That the Directors have prepared the accounts for the financial year ended 31st March 2010 on a 'going concern' basis. AUDITORS' REPORT: The notes on Accounts referred in the Auditors' Report are self-explanatory and therefore do not call for any clarification. However the specific issues dealt with by the auditors are addressed as under. (i) AS2 On valuation of inventories has not been compiled with in respect of Excise Duty. The company has been consistently following system of accounts for excise duty as per section 145 of the Income Tax Act, 1961. There is no impact on the profits/losses due to this treatment. (ii) AS9 requires the company to deposit undisputed statutory dues and the Company is also regular in depositing undisputed statutory dues, except in specific issues where some disputes are laying with Central Excise Department of Naroli and Sarigam dues are not yet paid because the Company is waiting for final decision. (iii) The directors have not been able to reasonably estimate the retirement benefits due to staff/workers and hence no provision has been made in this account. (iv) There has been a delay in depositing undisputed statutory dues including Provident Fund and Sales Tax. This is mainly on account of the fact that due to a fire in the company's factory and subsequent non- settlement of the insurance claim has resulted in a severe financial crunch for the company. (v) The company is already registered with the Board for Industrial and Financial Reconstruction (BIFR) as per the Act 1985. AUDITORS: M/s. KIRAN MATANI & ASSOCIATES, Chartered Accountants, Auditors have furnished their eligibility certificate required under section 224(1-B) of the Companies Act, 1956. The Board recommends their re-appointments till the conclusion of the next Annual General Meeting. DIRECTORS: Mr. Haresh M. Gandhi and Mr. Nalin R.Mandallia, Directors retires by rotation at the ensuing Annual General Meeting and being eligible, offers themselves for re-appointments. PARTICULARS OF EMPLOYEES: None of the employees has drawn remuneration as required under provisions of section 217(2A) of the Companies Act, 1956. Therefore, details in Form B are not given. CONSERVATION OF ENERGY, TECHNOLOY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO: Since there is no production during the year, the steps have not been taken to reduce consumption of electrical energy by improved housekeeping, improvement of power factor, indoor shop lighting, etc. in accordance with the provisions of section 217(1)(e) of the Companies Act, 1956. The required information is annexed to the Directors' Report. Regarding research & development, continuous efforts were made for up gradation of different products. By Order of the Board PLACE: SARIGAM (HARESH M. GANDHI) DATED: 16th August, 2010 MANAGING DIRECTOR ANNEXURE FORM - 'A': A. CONSERVATION OF ENGERY, TECHNOLOGY ABSORBTION: Details of energy consumption are given below. POWER AND FUEL CONSUMPTION 2009-2010 2008-2009 ELECTRICITY: Purchased: Total units consumed (In Lacs) NIL NIL Total Amount (Rupees in Lacs) NIL NIL Rate per unit (Rupees) NIL NIL Units Generated through Diesel Generator Sets: Unit Generated (In Lacs) NIL NIL Units per ltr of Diesel Oil NIL NIL Cost / Unit (Rupees) NIL NIL COAL: Total units consumed (In M.T.) NIL NIL Total Amount (Rupees in Lacs) NIL NIL Rate per M. T. (Rupees) NIL NIL FURNANCE OIL: Total units consumed (ltr in Thousand) NIL NIL Total Amount (Rupees in Lacs) NIL NIL Rate per ltr (Rupees) NIL NIL B. RESEARCH & DEVELOPMENT: R & D activities have not been carried out during the year. C. FOREIGN EXCHANGE EARNINGS / OUTGO: Earnings (Rs. In Lacs) NIL NIL Outgo (Rs. In Lacs) NIL NIL