SKYLEAD CHEMICALS LIMITED
ANNUAL REPORT 2003-2004
Your Directors herewith submit the 17th Annual Report of your Company for
the financial year ended 30th September, 2004.
1. SUMMARY OF FINANCIAL RESULTS: (Rs. in lac)
A. PROFIT/(LOSS) BEFORE DEPRECIATION (282.25) (188.80)
B. DEPRECIATION 73.23 70.77
C. PROFIT BEFORE TAX (355.48) (259.57)
D. PROVISION FOR TAX NIL NIL
E. PROFIT AFTER TAX (355.48) (259.57)
F. APPROPRIATIONS HAVE BEEN
MADE AS UNDER
TRANSFER TO GENERAL NIL NIL
PROPOSED DIVIDEND NIL NIL
BALANCE B/F (583.16) (323.59)
G. NET PROFIT CARRIED FORWARD (938.64) (583.16)
2. DIVIDEND :
No dividend is declared by the Company for the financial year 2003-2004.
3. OPERATIONS :
The Company, during the year under review, has proposed far modernisation
in the plant keeping parity with GMP like plant to enter the market for
pharmaceutical base industries both for domestic and international.
4. FUTURE PROSPECTS :
The demand of DMS Cationic Salt, during the year under review, has gone
down day by day in the domestic market of polyester fiber manufacturers.
However, polyester resin used as sizing material in Polyester fabric
manufacturing has been developed and commercially introduced by Skylead
Company in domestic market, as a prime product DMS salt is one of the
critical input in it. The company's advantageous position in marketing it
at competitive rates is expected to give a fair share of growing demand.
5. DIRECTORS :
Shri. Vallabhbhai J. Savani retires by rotation and being eligible offer
himself for re-appointment. You are requested to re-appoint him.
6. FIXED DEPOSITS :
The Company has not accepted Fixed Deposits from Public as envisaged under
Section 58A and 58B of the Companies Act, 1956, read with the Companies
(Acceptance of Deposits Rules, 1975)
7. AUDITORS :
The present Auditors M/s. S. Mandawat & Co., Chartered Accountants,
Ahmedabad, are retiring at the conclusion of Seventeenth Annual General
Meeting. You are requested to appoint them as they are eligible for
8. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO. :
Particulars regarding the conservation of energy, technological absorption
and foreign exchange earning and out go as envisaged by Sec. 217 (1) (e) of
the Companies Act, 1956 read with the Companies (Disclosure of Particulars
in the report of the Board of Directors Rules 1988) are Annexed as
9. PARTICULARS OF EMPLOYEES :
The particulars as envisaged by Section 217 (2-A) read with the Companies
(particulars of Employees), Rules 1975 need not be given as no employee is
covered there under.
Your Directors would like to place on record their appreciation of the
contribution made by the employees at all levels. Employees continue to
remain our major asset, in our continuing endeavors in the pursuit for
10. DIRECTORS RESPONSIBILITY :
In terms of Section 217 (2AA) of the Companies Act, 1956, the Directors
would like to state :
* That in the preparation of the annual accounts, the applicable accounting
standards had been followed along with proper explanation relating to
* That the directors had selected such accounting policies and applied them
consistently and made judgment and estimates that are 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 that period;
* That the directors had taken proper and sufficient care for the
maintenance of adequate accounting record in accordance with the provision
of the Act for safeguarding the assets of the company and for preventing
and detecting fraud and other irregularities;
* That the directors had prepared the annual accounts on a going concern
11. CORPORATE GOVERNANCE REPORT :
Corporate Governance refers to a professional system by which organizations
are directed and controlled. It is aimed at compliance of local statutes,
which adds value system to the organization.
Corporate Governance also refers to process, which should safeguard and add
value in the long-term for the interest of its various 'Partners' such as
shareholders, creditors, customers and employees.
The culmination of good Corporate Governance policy is :
* Transparency and professionalism in all activities of the Company.
* Implementation of procedures and policies prescribed by the Company to
* high ethical standard in all its business activities.
* Responsive management which meets the needs of its 'Partners'.
The Company has initiated the process of corporate governance in compliance
with clause 49 of the Listing Agreement with the Stock Exchanges. A sincere
attempt has been made to commence implementation of Corporate Governance
Code and in this regard, submit a report on the matters mentioned in the
said clauses and practices followed by the Company.
12. ACKNOWLEDGMENT :
The Board of Directors are pleased to place on record their sense of
gratitude for the continued financial support by banks and other
By Order of the Board
SKYLEAD CHEMICALS LIMITED
LOKENDRASINH C. RAOL
Date : 25/02/2005