RADIANT ROTOGRAVURE LIMITED
ANNUAL REPORT 2003-2004
The Directors of your Company submit the Sixteenth Annual Report together
with the audited statement of accounts of the Company for the year ended
31st March, 2004.
FINANCIAL RESULTS :
As at 31st March, 2004 As at 31st March, 2003
Rs. Rs. Rs. Rs.
for the year 10,00,098 (1,92,54,555)
Add: Interest 1,33,95,878 1,39,34,297
Depreciation 36,49,771 (1,70,45,649) 65,74,594 (2,05,08,891)
Add : Balance
Previous year (7,84,43,534) (3,19,80,088)
Add : Deferred Tax
Assets - (67,00,000)
to Balance Sheet (9,44,89,085) (7,84,43,534)
Your Directors do not recommend payment of dividend for the year ended
31.03.2004 due to loss during the year under review.
GENERAL REVIEW :
Your Company registered net loss of Rs.160.45 lacs during the year under
review mainly due to high raw material consumption, low capacity
utilisation and incidence of interest. There is continued frequent
interruption in production for lack of inputs feeding in time. Your Company
continued to reel under problem of working capital finance.
The Company continued to default in payment of interest and instalments of
term loans to the Bank, State Bank of India and Term Lending Institutions
namely WBFC and WBIDC. The Cash credit account of the Company with State
Bank of India which was running NPA was later on regularised with sanction
of long awaited Restructuring cum Rehabilitation scheme in August, 2003
which inter-alia included conversion of irregularity in the cash credit
account in Working Capital Term Loan (WCTL), funding of interest (FITL),
besides sanctioning of additional working capital. Likewise, similar
restructuring in the form of funding of interest, rescheduling the
instalments of Term Loans was done by WBIDC & WBFC too. The promoters also
contributed to the Rehabilitation scheme as stipulated. Your company
extends its sincere gratitude to the Bank and Financial institutions for
their support to help rehabilitation of the Company.
The short coming in the Restructuring cum Rehabilitation scheme was that a
shorter a moratorium period for payment of interest and instalment was
provided. The scheme, firstly, sanctioned by SBI in August '03 got accent
of WBIDC & WBFC by end of the year 2003. The scheme practically became
operative only by early 2004. Your company made it's best efforts to
restore the supply line, orders from the valued customers as well as
restore the production line. It is obvious that it was not to be
accomplished in duration of days. Despite that your company was making
steady progress, it was a time consuming exercise before attaining
The payment of interest and- repayment instalments as revised under the
afore-mentioned scheme started falling payable to WBIDC/WBFC. Though, as
back as in January 2004, your Company approached WBIDC/WBFC, inter-alia for
extending moratorium period to provide opportunities to the Company to
revitalise the financial strength on long term basis. However the State
Financial Corporations, viz, WBIDC and WBFC by exercising their powers U/S
29 read with Section 30 of the State Financial Act took physical possession
of the Factory of the Company at Howrah on 29.07.2004. The Registered
Office of your Company was also situated there which also stand locked
since then. Consequently, the operations of your Company has became stand
Still. It is pertinent to note that the Bank has not initiated any course
of action against the Company. The stocks and specified machines absolutely
hypothecated to the Bank also stand locked.
FUTURE OUTLOOK :
Your company is contemplating to make application u/s 15 of the Sick
Industrial Companies Special Provisions) Act, 1985 to Board for Industrial
and Financial Reconstruction (BIFR).
COMMENTS ON AUDITORS REPORT :
1. The clause ix (a), it is stated that there has been some delay in case
of payment of Provident Funds and no payment has been made in case of
Employees' State Insurance.
There has been delay in payment of the above dues due to insufficient fund.
However all payment of statutory dues have been made subsequently.
2. All other qualifications in Audit Report has sufficiently been explained
in Schedule 14 being ' Notes on Accounts'.
PARTICULARS OF EMPLOYEES :
The Board wish to place on record its appreciation of the services rendered
by Executives, Staff and workers at all levels during the year under
review. However none of the employees fall under the purview of Section
217(2A) of the Companies Act, 1956 read with Companies (Particulars of
employees) Rule 1975.
DIRECTORS RESPONSIBILITY STATEMENT :
Pursuant to section 217(2AA) of the Companies Act, 1956, the Directors,
based on the representations received from the Operating Management,
confirm that :
1. In the preparation of annual accounts, the applicable accounting
standards had been followed along with proper explanations relating to
2. The Directors had selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give true and fair view of the state of the affairs of the
company at the end of the financial year and profit of the company for that
3. The Directors had taken proper and sufficient care for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act for safeguarding the assets of the Company for preventing and
detecting fraud and other irregularities.
4. The directors had prepared the accounts for the period on a going
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN
EXCHANGE EARNING AND OUTGO :
The particulars required under section 217(1)(e) of the Companies Act, 1956
read with the Companies (Disclosure of the particulars in the Report of
Board of Directors) Rules 1988 forming part of Directors' Report are
In accordance with the requirement of the Companies Act, 1956 and the
Articles of Association of the Company, Shri U. Kejariwal, Director is
going to retire by rotation and being eligible has offered himself for re-
M/s. R.C. Jhawer & Co. Chartered Accountants, the auditors of the Company,
retires and being eligible offer themselves for re-appointment.
For and On behalf of the Board of Directors
Howrah S.K. PAHARIA
Dated : 27th August, 2004 Director
ANNEXURE TO THE DIRECTORS' REPORT
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) Rules, 1988 forming part of Director's Report.
A. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND EXPENDITURE ON R&D :
The manufacturing activities were at a very low ebb through out the
financial year under Report. The Unit was closed and taken over by State
Financial corporations on 29.07.2004 and hence no efforts of your Company
in regard to Conservation of Energy and Technology Absorption and that no
expenditure incurred on R&D during the year under review.
B. FOREIGN EXCHANGE EARNINGS AND OUT GO :
Earnings in Foreign Exchange : Nil
Out go in Foreign Currency : Nil
For and On behalf of the Board of Directors
Howrah S.K. PAHARIA
Dated : 27th August, 2004. Director