Sri Skandan Industries Ltd.
||Sector: Agri and agri inputs
||ISIN Code: N.A.
05:30 | 01 Jan
Sri Skandan Industries Ltd
05:30 | 01 Jan
Sri Skandan Industries Ltd
Sri Skandan Industries Ltd. (SRISKANDANINDS) - Director Report
Company director report
SRI SKANDAN INDUSTRIES LIMITED
ANNUAL REPORT 2004-2005
Your Directors have pleasure in presenting the Tenth Annual Report along
with the Audited accounts of the Company for the year ended 31st March
Amount Rs. In lakhs
Particulars 31.3.2005 31.3.2004
Net loss from operations 3.92 14.45
Dairy (1.15) (19.60)
Horticulture (2.77) 5.15
Misc. Expenses written off 5.03 4.97
Net loss for the year 8.95 19.42
1. DAIRY DIVISION
The company had to struggle to maintain levels of procurement as well as
sale of milk during this relevant period. Large players in the Industry
have also made significant in roads in our local market and procurement
territory which heightened the competition and the company has to maintain
its price level as in the earlier year. Your company is taking good efforts
to overcome such competition.
Horticulture division yielded a Net loss of 2.77 lakhs as against a profit
of 5.15 lakhs in the previous period. The profitability has been reduced
due to failure of the expected crop pattern.
3. SUBSIDIARY COMPANIES
Your Company has no subsidiary company.
4. The Board of Directors have sought waiver of portion of loan liabilities
due to promoters, in view of the huge losses suffered due to uncollectible
debtors balances on account of unresolved disputes between the company and
the sales agents. All the promoter groups have agreed to waive a total
amount of Rs.75 lakhs of loan liabilities due to them by the company to be
set off against loss due to write off bad and unrealizable debtors. Thus
Sundry Debtors to the extent of Rs.75 lakhs were written off in the books,
which was not charged to the revenue account and liability to the extent of
Rs.75 Iakhs were extinguished in the books of the company.
The Board of Directors have unanimously repledged their commitment to
resurrect the company from the ruinous conditions and bring back the
company to the prosperous ways. The Board of Directors also places its deep
appreciation and gratitude for the unparalleled spontaneous generous
gesture shown by the various promoter's groups, their associates to waive a
big chunk of their loans to the company, to save the company from the brink
5. Statutory Auditors
M/s Prakash & Prasad Chartered Accountants who retire at the conclusion of
this AGM and being eligible offers themselves for reappointment. The Board
recommends their reappointment.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to section 217 (2AA) of the Companies Act, 1956 the Directors
hereby confirm that they have:
1. Followed the applicable accounting standards in the preparation of the
annual accounts, except as otherwise specifically stated.
2. Selected such accounting policies and applied them consistently and made
judgments 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 loss of the company for the year under review;
3. Taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provision of the Companies Act,
1956 for safeguarding the assets of the company and detecting fraud and
4. Prepared the accounts for the financial year on a 'going concern' basis.
1. Companies (Disclosure of particulars in the Report of the Board of the
Directors) Rules 1988.
Conversation of Energy : The company is taking all steps to conserve
Technology Absorption: Not Applicable
Foreign Exchange earnings and outgo: Nil
2. Particulars of Employees :
None of the employees of the Company was paid remuneration exceeding the
limits requiring disclosure under section 217 (2A) of the Companies Act,
3. Comments by Auditors
There were certain adverse comments by the auditors relating to maintenance
of registers and internal audit. The directors are taking effective steps
to comply with these requirements during the current financial year.
4. The company had availed a term loan from M/s TIIC Ltd., Tirunelveli
against first charge on the Dairy assets of the company amounting to 63.75
lakhs in the year 1996. The amount standing as at 31.3. 2005 is Rs.45.69
lakhs. No interest on the loan was, prevailing overdue and unpaid as at the
end of the accounting period. Working capital term loan from M/s CUB Ltd..
Tirunelveli - outstanding liability as on 31.3.2005 is Rs.6.50 lakhs as
against the sanctioned limit of Rs.7.5 lakhs. No interest is overdue and
remaining unpaid as on 31.3.2005.
5. Listing on Stock Exchanges
The shares of the company were listed in Bombay Stock Exchange and Madras
Stock Exchange. Trading has been suspended in these exchanges due to non
payment of listing fees. The Company could not pay the listing fees this
time due to accumulated losses and paucity of funds. The company is taking
appropriate steps to restore listing of shares.
6. Corporate Governance
The company is taking effective steps to implement and comply with
all mandatory provisions of corporate governance as prescribed under the
listing agreement of the stock exchanges with which the company is
7. Social responsibility
Your company is conscious to the protection of environment and is taking
effective care to protect, maintain and improve the environment in the area
of its operation. The company's Milk Processing Unit is situated in a
remote area far away from the nearest habitat, in the midst of a well grown
horticultural garden. The company has implemented a sound waste water
treatment plant to re-cycle the waste water from the factory for captive
consumption in is horticultural fields. The company has provided employment
to a majority extent only to the local people in the area.
The Board of directors wish to express their thanks to M/s TIIC, City Union
Bank Ltd. and other banks for their support and assistance. The Directors
thank the lendors, suppliers, consumers and shareholders for the confidence
reposed in the company. The Directors also wish to thank the employees at
all levels for their dedicated performance during the current period.
Place : Chennai For and on Behalf of the Board of Directors
Date : 5-9-2005 For Sri Skandan Industries Ltd.
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