SHREEJI INDUSTRIES LIMITED
ANNUAL REPORT 2003-2004
Your Directors have pleasure in presenting the 14TH ANNUAL REPORT together
with the Audited Accounts of the Company for the Financial year ended 31st
The Summuarized results for the YEAR are as Under:
(RS. IN LACS)
YEAR ENDED ON YEAR ENDED ON
INCOME FROM OPERATION 199.39 94.38
GROSS LOSS FROM OPERATION (-) 169.99 (-) 184.62
LESS: DEPRECIATION 64.47 64.47
PROVISION FOR TAX - -
NET LOSS FOR THE PERIOD (-) 234.46 (-) 249.09
ADD: BALANCE BROUGHT FORWARD (-) 900.87 (-) 738.86
LESS: TRANSFER FROM GENERAL RESERVE - 87.08
NET PROFIT/(LOSS) CARRIED FORWARD (-) 1135.33 (-) 900.87
During the year overall operations of the company his improved
significantly inspite the overall recession in Indian as well as in the
International Market. During the year the company has improved its working
and the cash losses have reduced. The Company is facing Liquidity crisis
and to continue the production process the company has started Job Work
activities of various customers along with own production. The Company
continues to remain a Sick Industrial Company under the provisions of Sick
Industrial Companies (Special Provisions) Act, 1985 as the Net Worth of the
Company has been further corded due to losses incurred during the year.
Despite incurring losses, the company is carrying on its normal activities
and expects to recoup these losses during the subsequent years.
REFERENCE TO BIFR
The Company has already made reference to the Board for Industrial and
Financial Reconstruction under the Sick Industrial Companies (Special
Provisions) Act, 1985 and the Company's reference has been registered vide
Case No.401/2002. Till date no hearing has been schedule by the BIFR.
Due to the Depressed Market condition the company could not achieve the
desired sales and results. However the Company expects the increase in the
demand both in National, and International markets. The company has solid
marketing base in National as well as international markets since last 12
years, as soon as the demand will rise, the company will be benefited and
will be able to produce improved results.
The Company has made adequate arrangement for procurement of Raw Material &
enjoys good relationship with Mine owners and do not foresee any difficulty
in procurement of the Raw Material.
In view of losses Directors are unable to declare any dividend on Equity &
preference share for the year under review.
The Industrial relations in the Company during the year remained cordial.
Your Directors wish to place on record their sincere appreciation for the
excellent team work done by the workers, officers and executives of the
Company at all levels.
PARTICULARS OF EMPLOYEES
The Company have not employed any employee during the year drawing salary
equal to or more then the level stipulated under Section 217(2A) of the
Companies Act, 1956 read with the Companies (Particulars of Employees Rules
In accordance with the provision of companies Act, 1956 and the articles of
association of the company, MR. N.P. Shrivastav retires by rotation and is
eligible, offer himself for reappointment. The Board recommends his
During the year under review, the company has not accepted any deposits
DIRECTOR'S RESPONSIBILITY STATEMENT UNDER SECTION 217(2AA) OF THE COMPANIES
The Directors confirm that:
i) In the Preparation of the annual accounts, the applicable accounting
standards have been followed by the company
ii) Such accounting policies have been selected and consistently applied
and judgements and estimates made that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the Company as on 31st
March, 2004 and of the loss of the Company for the year ended on that date.
iii) Proper and sufficient care has been taken for the maintenance of the
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) The annual accounts have prepared in going concern basis.
Members are aware that the Listing Agreement with the Mumbai Stock Exchange
has been amended by the insertion there in of Clause 49, which requires the
company to implement the code of Corporate Governance. Our company was
required to comply with the said code within the Financial Year 2002-2003
but due to heavy losses, legal cases pending against the company, and as
the company's Plant is located in the Remote area, the company is not in a
position to deploy additional work force and suitable persons in the Board
to implement the Complete Corporate Governance as mentioned in Clause 49 of
the Mumbai Stock Exchange's Listing Agreement. Your Directors are taking
necessary steps in implement Corporate Governance in the near future.
PARTICULARS OF ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN
Particulars as required to be disclosed as per rule 2(A), 2(B) and 2(C) of
the Companies (Disclosure of particulars in the report of Board of
Directors) Rules 1988 about energy conservation, technology absorption and
foreign exchange earning/outgo are set out in the Annexure attached hereto
and form part of this report.
M/S. AGRAWAL & MANDOWARA Chartered Accountants, Ahmedabad retire at the
ensuing Annual General Meeting and being eligible, offer themselves for
reappointment. The Board of Directors recommends their appointment.
Notes forming part of the Accounts which are specifically referred by the
Auditors in their Report are self-explanatory and therefore do not call for
any further comments.
Your Directors gratefully acknowledge the support and cooperation extended
by the financial Institutions, Banks, various Govt. authorities etc. for
their continued co-operation and support. The Board also express its deep
appreciation of the commendable services rendered by the Company's
employees at all levels.
Regd. Office: BY THE ORDER OF THE BOARD
VILLAGE : AAVAL TAL PALANPUR
DIST. : BANASKANTHA
GUJARAT : 385130
PLACE : AAVAL (K.G. TOSHNIWAL)
DATED : 23rd July, 2004. CHAIRMAN & M.D.
ANNEXURE TO DIRECTOR'S REPORT
(A) Additional information as required under the Companies (Disclosure of
Particulars in the report of Board of Directors) Rules 1988.
1. CONSERVATION OF ENERGY
Your Management is regularly giving importance to conservation of energy by
improvement in manufacturing process, better control over electricity
consumption and using more cost effective source of energy. Periodical
studies are being undertaken on identify new areas for efficient use of
energy and utility.
2. TECHNOLOGY ABSORPTION
Company's technology team has already absorbed the state of art technology
in manufacture of POLISHED GRANITE SLABS and has already done a lot of
successful work in adopting and improving the technology brought in by
Company's plant suppliers and the visiting technical experts. The main
thrust areas continue to improve productivity and technical efficiencies
through continuously monitored programme of cost effectiveness and value
engineering techniques. This has helped the Company to better the quality
of its products and achieve economics in production costs.
3. FOREIGN EXCHANGE EARNING & OUTGO
Foreign Exchange Earning (Export) Rs. Nil
Foreign Exchange Outgo (Import of Rs. 10.80 Lacs
components, parts, spares & Expenses)
BY THE ORDER OF THE BOARD
PLACE: AAVAL (K.G. TOSHNIWAL)
DATED: 23rd July, 2004. CHAIRMAN & M.D.