SHAMKEN MULTIFAB LIMITED
ANNUAL REPORT 2007-2008
Your Directors are pleased to present their 20th Annual Report together
with Audited Accounts of the Company for the year ended 31st March, 2008.
Rupees in lacs
FINANCIAL HIGHLIGHTS Year Ended Year Ended
Sales & Other Income 2494.15 3660.20
Profit/Loss before Tax (1221.40) (1085.94)
Profit/Loss after & Tax (1225.70) (1092.57)
Loss B/F from previous year (7815.24) (6722.68)
Profit/Loss available for appropriation (9040.94) (7815.24)
The Arrangement Scheme Under Section 391-394 of the Companies Act, 1952
filed by the Company with hon'ble High Court of Allahabad at Allagabad. The
meeting of the secured creditors will be held on 6th September, 2008 at
Coshi, Mathura (U.P.) to approve the Scheme of Arrangement.
In view of the accumulated losses your Board is unable to declare any
dividend for the year under review.
Mr. Amit Chatunredi and Mr. K.P. Saxena, Directors of the Company, retire
by rotation and being eligible, offer themselves for re-appointment. Your
Board recommends their re-appointments as Director.
The observations of the auditors are self explanatory and therefore, do not
call for any further comments.
The Auditors of the Company, M/s. J.P. Chaturvedi & Associates, Chartered
Accountants, the present auditors, retire at the ensuing Annual General
Meeting and being eligible offer themselves for re-appointment. Your
Company has received a certificate from them stating that the re-
appointment, if made, will be in conformity with the limit specked under
Section 224(1 B) of the Companies Act, 1956.
The Central Government's Cost Audit order specifies audit of Cost
Accounting Records for certain specified products every year. The Board of
Directors, subject to the approval of the Central Government, has appointed
M/s S.K. Mittai & Co., Cost Accountants, to carry out the Cost Audit for
the year under review at remuneration to be decided by the Board of
As required by Clause 49 of the listing agreement, the reports on
Management Discussion and Analysis, Certificate from the Company Secretary
in Practice regarding compliance of conditions of Corporate Governance, &
Corporate Governance Report are annexed as annexure - II, III & IV
respectively and form an integral part of this report.
ENERGY CONSERVATION TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND
Information pursuant to Section 217(1)(e) of the Companies Act, 1956 read
with the Companies (Disclosures of particulars in the report of Board of
Directors) Rule, 1988 is given in the Annexure-I, forming part of this
Your Company has been effectively discharging payments to its deposit
holders as per the Direction given by the Company Law Board. It owns
liability to the tune of Rs.229.07 Lacs against 1365 number of Deposit
PARTICULARS OF EMPLOYEES:
Information in accordance with the provisions of section 217(2A) of the
Companies Act, 1956, read with the Companies (Particulars of Employees)
Rule, 1975 as amended, there is no employee employed by the Company either
for whole or part of the year drawing remuneration in excess of the limits
laid down under the rules mentioned above.
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to Section 217(2AA) of the Companies Act, the Directors confirm:
a. That in the preparation of the accounts for the year ended on 31st
March, 2008 the applicable Accounting Standards generally have been
b. That such Accounting policies have been selected and applied
consistently and judgments and estimates that are reasonable and prudent
made so as to give a true and fair view of the state of affairs of the
Company at the period ended 31st March 2008.
c. That proper and sufficient care has been taken for 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.
d. That the accounts for the period ended 31 March, 2008, have been
prepared on a going concern basis.
Your Directors wish to convey their thankful appreciation for the constant
and enthusiastic support of the Company's Customers, Distributors,
Suppliers, Bankers and Financial Institutions and the State and Central
Governments, without which the Company would not have been able to
accomplish whatever it has actually attained. Your Directors also take this
opportunity to express their appreciation of the earnest efforts put ire by
the employees, at all levels, in achieving the corporate objectives.
For and on behalf of the Board
For Shamken Multifab Limited
Sanjay Chaturvedi Amit chaturvedi
Place : New Delhi Director Joint Managing Director
Date : 25th August, 2008
Information in accordance with the Companies (Disclosure of Particulars in
the Report of Board of Directors') Rule, 1988.
Statement of particulars pursuant to Companies (Disclosure of Particulars
in the report of Board of Directors') Rule, 1988.
PARTICULARS Year Ended Year Ended
A. CONSERVATION OF ENERGY:
a) energy conservation measures : all round efforts are being made
b) additional investment and : made for energy conservation to
proposal, if any, being implemented reduce wastage. Energy
for reduction of consumption of conservation has been made a part
energy; of work culture
c) impact of measures at (a)and (b) : Power for per Mtr. of fabric
above of for reduction of consumption
d) Power & fuel Consumption : As Per form 'A' Attached
B. TECHNOLOGY ABSORPTION:
a) efforts made in Technology : As Perform 'B' Attached
C. FOREIGN EXCHANGE EARNING AND OUTGO :
a) activities relating to exports, : As mentioned in Directors' Report,
initiatives taken to increase
exports, development of new export
markets for product and services, and
b) total foreign exchange used and
i) Foreign Exchange used : 9,245,074 14,799,090
ii) Foreign Exchange earned : NIL NIL
FORM - A:
A. POWER AND FUEL Year ended Year ended
CONSUMPTION 31st March 2008 31st March 2007
a) Purchase unit KWH 485998 1286561
Total Amount Rupees 2238933 8871876
Rate/unit Rupees 4.60 6.90
b) Own Generation through
Diesel Gensets unit 1459375 147944
Units per liter of Diesel Units/Ltr 2.83 2.6
Cost per Unit Rs./Unit 7.48 13.53
Ltrs (Diesal) 45874 26795
KG (Wood) 3477122 4707699
Total Amount Rupees 12172442 12180813
Average Rate Rs/Ltrs. 3.45 2.57
B. CONSUMPTION PER
UNIT OF PRODUCTION:
Velvet/Fabric Mtr. 770656 941458.57
Coir Nos. 5117 7244
Electricity includes Unit/meter 0.9 0.78
Unit for DG Set Unit/Coir/No. 05 1.35
Cost Rs./Mtr. 7.2 4.89
Rs./Coir/No. 12.40 10.18
Boder (Diesel) Ltrs/Mtr 0.06 0.02
Cost Rs./Mtr 1.99 0.66
Dyeing Production Kg. 410044 635742
Electricity KWH/Kg 3.02 1.07
Cost Rs./Kg. 18.41 9.74
Boiler (WOOD) Unit/Kg. 8.47 7.40
Coot Rs./Kg. 25.93 16.00
Water Charges Rs. 634189 357959
(Form for Disclosure of Particulars with respect to absorption):
Research and Development (R&D):
1. Specific areas in which R&D : Improvement in methods of manufacturing
Carried by the Company cost effectiveness and efficiencies.
2. Benefits derived as a result : Newer & improved methods of
of the above R&D manufacturing yarn, cost reduction,
improvement in efficiencies.
3. Future plan of action : To continues for development of better
products and improvement in quality &
4. Expenditure on R&D } : It is an on-going process and there is
} no specific allocation and
} identification of expenditure of R&D
(a) Capital } :
(b) Recurring } :
(c) Total } :
(d) Total R&D expenditure as a } :
percentage of total turnover }
Technology Absorption, Adoption & Innovation:
1. Efforts, in brief, made : The Company is regularly pursuing the
towards technology absorption, up-gradation of technology for the
adaption innovation development of new product.
2. Benefits derived as a result : Improvement of quality of products,
of the above efforts e.g. improvement in manufacturing process
product improvement, cost resulting in cost reduction and
reduction. wastages during the manufacturing
process and acceptability of the
product in the international market
3. In case of imported technology : Nil
(imported during the last 5 years
reckoned from the beginning of
the financial year)
Note: Figures have been re-arranged and re-grouped wherever required in the
Directors' Report and management Discussion and analysis along with
MANAGEMENT DISCUSSION & ANALYSIS REPORT:
OPERATIONS & OUTLOOK:
The Company's Accounts for the current year has been prepared far the year
of 12 Months i.e. from 01-04-2007 to 31-03-2008. During the year under
review your Company has clocked a turnover of Rs. 2483.80 Lacs excluding
increase in Stocks & other income. The Company has incurred a net loss of
Rs.1225.70 Lacs after providing a depreciation of Rs. 1108.22 Lacs.
This is attributed to the severe strict measures to revive the Company in
order to put it on track as early as possible.
As the economy booming and the demands of the Company's product improving
we expect to make a significant turn around very soon.
Your Company is negotiating with Financial Institutions, Banks, State
Government to support the restructuring program formulated by the Company
so that the financial health of the Company be put on track.
SWOT ANALYSIS FOR THE COMPANY:
Your Company is one of the leading producer of automobile fabric & matrac
for original cars, having command over one third of automobile fabric
market. Your Company has tied-up with liziong Ltd., Korea & Sumino textile,
Japan for supply of necessary know-how to produce world class automobile
fabric in India at competitive prices. This will lead to gain in
significant market share in automobile fabric market.
Weaknesses & Threat:
Your Company is heavily dependent on the supply of raw materials like; Air
texture yams, polyster yams and fancy yarns. To ensure supply of these raw
materials your Company is in constant touch with the vendors.
Further, your Company has approached Board of Financial & Industrial
Reconstruction for the revival of the Company and expecting favourable
response in the larger interest of the Company and its stakeholders.
The Indian Automobile Fabric market is going paces with the steep rise in
the production of cars with estimated production of around four million
cars per year by 2010.
This gives us immense opportunity to grow in this field.
Your Company has it stalled proper plants to fulfill its obligations
towards environmental safety.
INTERNAL CONTROL SYSTEM & ADEQUACY:
The Company has a well defined internal control, System that is adequate
and commensurate with size and nature of business. Clear roles,
responsibilities and authorities, coupled with internal information
systems, and ensure appropriate information flow to facilitate effective
RESEARCH & DEVELOPMENT:
Expenditures on Research and Development is not separately allocated and
identified. The recent technological tie-up with the Korean and Japanese
firm will lead to overall quality improvement.
Statements in this report describing the current industry, outlook,
opportunities etc. reflect the estimation and opinion of the Company. The
same are based on certain assumptions and expectations of future events.
The actual results may substantially diverge from the same as they depend
upon the worldwide political, economic and social situation. Further,
Government regulations, tax structure, demand & supply conditions, cost of
raw materials & their availability and other related factors can also have
a bearing on the above statements.
For and on behalf of the Board
For Shamken Multifab Limited
Place : New Delhi Sanjay Chaturvedi Amit chaturvedi
Date : 25th August, 2008 Director Joint Managing Director