SHRI SAINATH PROTEINS LIMITED
ANNUAL REPORT 2000-2001
Your directors have pleasure in presenting this 11th Annual Report and the
Audited Accounts for the financial year ended on 31st March 2001.
In view of the cash-flow constraints your directors do not recommend
dividend for the year 2000-2001.
2. Operations :
As you know that state was under the severe conditions of two consequent
draughts and hit by earthquake. your directors are satisfied to note that
inspite of a slack previous year not only your company,managed cash profits
but achieved a growth in turnover. In fact your company has done better
than most of the players in the industry Because of the uncompromising
efforts for the quality the brand name 'Shreshth' has strengthened itself
in the market. Matched by quality were the services and the balanced
pricing which provided us an edge in the market. We are in fact still
trying to improve on these aspects and adding professionalism and are sure
that the next year would be better. With the news of good monsoon the
future seems brighter.
3. Share Capital :
As you are aware the shareholders approved the renouncement of unpaid
portion of equity shares at the Extraordinary General Meeting held on
22.03.2000. The Hon'ble High Court of Gujarat approved the scheme of
reduction of share capital on 10.10.2000 and the company has now got
permission for trading on Ahmedabad Stock Exchange and in=principle
approval from Mumbai Stock Exchange.
Shareholders who have not so far exchanged their partly paid share
certificates are requested to approach the company for exchange of the
partly paid share certificates by fully paid share certificates.
4. Directors :
There was no change in the composition of directors of the Board, Mr.
Naresh R. Bajaj, Director retires by rotation and being eligible offers
himself for re-appointment.
5. Directors Responsibility Statement:
Pursuant to the requirement under Section 217 (2AA) of the Companies Act,
1956 as amended by Companies (Amendment) Act, 2000 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 2001, the applicable accounting standards have been followed
along with proper explanation relating to the material departures.
(ii) that 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) that the Directors have taken proper ard sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of The Companies Act, 1956 for safeguarding 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 2001 on a 'going concern' basis.
6. Energy, Technology and Foreign Exchange:
The information as per the Companies (Disclosure of-Particulars in the
Report of Board of Directors) Rules, 1988 relating to conservation of
Energy, Technology absorption and Foreign Exchange earning and outgo, to
the extent applicable to the company are given in Annexure A forming parts
of this report.
7. Personnel :
There were no employees in the company who were in receipt of a total
remuneration of Rs.12,00,000 p,a. employed for the entire year or for a
part of the year and received monthly salary of Rs. 1,00,000 as
contemplated under the Companies (Particulars of Employees) Rules, 1975.
8. Fixed Deposit :
Thc company has not accepted during the year under review any deposits and
defined under Companies (Acceptance of Deposits) Rules, 1995.
9. Auditors :
M/s. S/A Gathani & Company, Chartered Accountants, Rajkot, Auditors of the
Company hold office until the conclusion of Eleventh Annual General Meeting
and are recommended for reappointment for the next financial year. The
company,has received a certificate from the above Auditors to the effect
that their re-appointment, if made, will be within the specified limits
under Section 224 (1B) of The Companies Act 1956.
10. Auditors Report
The observations of the Auditor, are explained wherever necessary in the
appropriate notes annexed to the accounts. The explanations contained in
the notes may be treated as information explanations submitted by the Board
As contemplated under Section 217(3) of the Companies Act, 1956.
Your directors take this opportunity to express their sincere gratitude for
the assistance and continued support and co-operation extended by Banks,
Government and Statutory Authorities, share holders, Suppliers and
Your Directors also wish to place on record their deep appreciation of the
contribution made by the employees and consultants at all level towards the
growth of the company.
For and on behalf of the Board of Directors
Date : August 16, 2001 Prakash L. Hinduja
Place : Ahmedabad. Chairman
Particulars required under the Companies (Disclosure of particulars in the
report of Board of Directors) Rules, 1988
(a) Conservation of Energy:
Care is taken for economic consumption of energy is all the sections of the
company. Company had consumed electricity and the cost of power fuel is
reasonable. Company has successfully worked out effective and efficient
design of the lighting and energy devices in the factory and office area.
(b) Technology Absorption:
Research & Development (R & D)
(i) Specific area in which R & D is carried out by the company.
(a) Improvement of Product Quality
(b) Process Opiimization
(c) Process Development / modification.
(ii) Benefits derived as a result of the above R & D.
Lower cost due to higher quality and better process optimization.
(iii) Future plan of action.
The company efforts will continue in the above are of R & D.
(c) Technology absorption, adoption & Innovation.
(1) Effort, in brief, towards. technology absorption, adoptions and
The company has instituted, state of the art machinery at the plant, which
operate under excellent technological parameters.
(2) Benefits derived as a result of the above.
The machinery has been made the company products highly competitive in the
(3) Future Plans:
The company will continue its efforts to improve the product quality and
productivity by carrying out various process/Quality improvements through
(d) Foreign Exchange Earning & Outgo Nil