Your Directors have pleasure to present herewith their Eighteenth Annual Report on thebusiness and operations of the Company together with the financial results for the yearended 31st March, 2012.
| ||(Rs.) ||(Rs.) |
| ||2011-12 ||2010-11 |
|Operating Profit / (Loss) before Finance Charges, Depreciation ||(3,986,517) ||(19,057,674) |
|Depreciation and Amortization ||(6,648,688) ||(16,076,027) |
|Profit / (Loss) before exceptional items ||(10,635,205) ||(35,133,701) |
|Exceptional Items ||(18,436) ||(9,48,589) |
|Profit / (Loss) from Continuing operation ||(10,653,641) ||(36,082,290) |
|Profit / (Loss) from Discontinuing operations ||(32,391,911) ||- |
|Profit/(Loss) for the period ||(43,045,552) ||(36,082,290) |
|Accumulated (Loss) brought forward ||(307,237,147) ||(271,154.857) |
|(Loss) carried forward to Balance Sheet ||(350,282,699) ||(307,237,147) |
In view of loss during the year, your Directors regret their inability to recommendpayment of Dividend for the year.
Consequent to closure of the factory from 28th March, 2011, there was no production inthe year 2011 -2012 and hence, sale during the year under review was nil.
SALE OF ASSETS
As reported in the previous year the Company had received advance from a buyer againstsale of Intra Venous Fluid manufacturing machinery of the Company. However, the sale waseffected during the year under review. Loss on sale of such machinery during the year wasRs.323,92 lakhs.
Some proposals as to setting up of Medical Care Unit, Cancer Research Unit &Hospital etc. were reviewed but no conclusive decision could be taken in absence of properfinancial planning. In view of involvement of huge Capital Expenditure, it becomesnecessary to hold discussions with Financial Institutions for the required financialassistance over and above Promoters'contribution. However, further review would be madeduring the current financial year.
MANAGEMENT DISCUSSION AND ANALYSIS
1. INDUSTRY STRUCTURE AND DEVELOPMENTS
Once a new Project is identified, it will be possible to discuss both structure anddevelopment of the Project.
2. OPPORTUNITIES AND THREATS
Many opportunities are open to the proposed new projects. Management has been makingcontinuous study on such new projects. Selection of a Project is always subject to takingrisk. Both opportunities & threats are associated with a new line of activity.Similarly, a number of contingencies are involved in implementation of a new project.
3. SEGMENT-WISE / PRODUCT-WISE PERFORMANCE
Your Company is in search of a suitable project keeping in mind of its past experience.Therefore, reporting under sector wise performance does not arise at this stage.
The prospect of the Company largely depends on selection of an appropriate project andits techno-commercial viability.
5. RISKS & CONCERNS
The major concern of your Company relates to earning a fair margin of profit. Otheraspects of concern of your Company include selection of an appropriate project, funding ofthe said project and selection of a financial partner for execution of the project.
6. INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY
Adequate systems of internal control are in place to safeguard the assets of theCompany.
7. FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
Due to suspension of work, there was no operating activity during the year underreview. The Company suffered a loss of Rs.106.35 lakh before consideringexceptional items and loss arising out of discontinuing operations being sale ofmachinery.
8. HUMAN RESOURCE & INDUSTRIAL RELATIONS
After closure of the factory the entire dues of the Company to the employees have beenfully settled.
DIRECTORS' RESPONSIBILITY STATEMENT
1. The applicable accounting standards excepting those mentioned in Para 1.11 tothe Notes to accounts have been followed in the preparation of the annual accounts for theyear.
2. The Directors have selected such accounting policies and applied themconsistently and made judgements and estimates that are reasonable and prudent so as togive a true and fair view of the state of affairs of the Company as at 31 st March, 2012and of its losses for the year ended on that date.
3. The Directors have taken proper and sufficient care lor the maintenance ofadequate accounting records in accordance with the provisions of the Companies Act, 1956for safeguarding the assets of the Company and for preventing and detecting fraud andother irregularities.
4. The Directors have prepared the Annual Accounts on a going concern basis.
PARTICULARS OF EMPLOYEES
Section 217(2A) of the Companies Act, 1956 was not applicable since there was noemployee drawing salary during the year in excess of the specified amount.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS &EXPENDITURE:-A CONSERVATION OF ENERGY:-
|1. Power and Fuel Consumption || ||Current Year ||Previous year |
|i) Electricty from WBSEDCL || || || |
|Unit ||Kwh ||67615 ||114945 |
|Total Amount ||Rs. ||1.922.843 ||2,130,519 |
|Rate ||Rs./Kwh ||28.43 ||18.53 |
|2. Consumption per Unit of Production || ||Current Year ||Previous year |
|Electricity ||Kwh/bottle ||No Production ||No Production |
|Furnace Oil ||Ltr./bottle ||No Production ||No Production |
Since the factory is closed there is not much scope for reduction of energyconsumption, The expenses on electricity are only for the closed factory. The electricityexpenses are on the higher side as the energy bills are raised by the supplying unit basedon the minimum load factor.
B. TECHNOLOGY ABSORPTIOR:-
The Company is waiting for new project to come in. The Company hereby undertakes thatthe technology of the new project will be fully absorbed during and immediately after theimplementation of the project.
C. FOREIGN EXCHANGE EARNING AND EXPENDITURE:-
There was no inflow and outgo of foreign exchange during the year.
AUDITORS AND AUDIT REPORT
Messrs Rajesh Chaturvedi & Associates, Chartered Accountants, retire at theforthcoming Annual General Meeting as statutory auditor and being eligible, offerthemselves for re-appointment.
The observations of the auditors in their report on the Company's accounts for 2011-12,dealt with the Notes on Accounts which form part of the Accounts.
AUDITORS' CERTIFICATE ON CORPORATE GOVERNANCE
A Certificate from the Auditors of the Company regarding compliance with the Code ofCorporate Governance as stipulated under Clause 49 of the Listing Agreement is annexed tothis Report.
Mr. C.S. Choudhury, Director retires at the forthcoming Annual general Meeting andbeing eligible, offers themselves for reappointment.
| ||For and on behalf of the Board |
|Place: Kolkata ||Kajal Sengupta |
|Date: 31st May, 2012 ||Chairman & Managing Director |