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AUTO TENSION LIMITED
ANNUAL REPORT 2004-2005
DIRECTOR'S REPORT
Your Directors are pleased to present the 20th Annual Report together with
the audited statement of accounts for the period ended 31st March,2005.
1. FINANCIAL RESULTS
Rupees in Lakhs
2004-2005 2003-2004
Sales and Other Income 3.60 3.60
Profit/(Loss) Before Interest & Depreciation (8.65) (6.22)
- Interest 1939.20 1565.50
- Depreciation 59.44 59.44
- Profit for the year (2007.29) (1631.16)
2. OPERATIONS AND CORPORATE GOVERNANCE
The Company became Sick under the provisions of Section 3 (1)(o) of the
Sick Companies (Special Provisions) Act,1985 as the accumulated losses
exceeded the networth of the company as on 30.09.1998. Accordingly the case
was registered with BIFR., where the proceedings have been concluded but
against the final order passed by the B.I.F.R. the company has filed an
appeal before the A.A.I.F.R which is still pending. After July 2001 there
have neither been any production nor substantial sale and due to paucity of
resources the compliance of conditions of corporate governance as
stipulated in Clause 49 of the listing agreement with Stock Exchanges in
India could not be compiled with. Therefore the auditors certificate in
this respect could not be sought.
3. FINANCE
In an earlier year an arrangement was entered into with the financial
institutions for repayment of their dues but due to continuous losses in
the factory the company could not repay. The financial institutions have
filed case for recovery of loan & interest etc. thereon in the Debt
Recovery Tribunal Delhi. But the Company being sick and registered under
Sick Industrial Companies Act in B.I.F.R. under Section 15(1) of Sick
Industrial Act (Special Provisions) Act, the proceedings are subject to
conclusion of matter pending before AAIFR.
4. PERSONNEL
As required under Section 217 (2A) of the Company's Act, 1956 the
particulars are stated in the annexure and forms part of the report.
5. DIRECTORS
Shri S.K. Arora and Shri Ashok Mahajan Director of the Company retire by
rotation and being eligible offer themselves for re-appointment.
6. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS
& OUTGO
A statement giving details in accordance with the Companies (Disclosure of
Particulars in the Reports of Directors) Rules 1988 is annexed and forms
part of the Report.
7. DIRECTORS RESPONSIBILITY STATEMENT PURSUANT TO SECTION 217(2AA) OF THE
COMPANIES ACT,1956.
i) Applicable accounting standards have been followed in preparing the
annual accounts and materials departure, if any have been properly
examined.
ii) The Directors have selected and applied accounting policies and applied
them consistently and have made judgements and estimates that are
reasonable and prudent in respect of the industry so as to give a true and
fair view of the state of affairs of the Company and Profit and Loss
Account as at the date of Balance Sheet.
iii) The Directors have taken proper and sufficient care for;
a. Maintenance of adequate accounting records in accordance with the
Companies Act 1956.
b. Safeguarding the assets of the Company and
c. Preventing and detecting fraud and other irregularities.
iv) The Directors have prepared the annual accounts on a going concern
basis.
8. AUDITORS
M/s Basant Ram & Sons Chartered Accountants retire at the forthcoming
Annual General Meeting and are eligible for re-appointment.
9. AUDITORS' REPORT
As regards comments of the Auditors these when read with the note, of the
accounts are self-explanatory.
Place : Delhi Sd/-
Dated : 02-09-2005 RUP CHAND
S.K. ARORA
ASHOK MAHAJAN
IBNE HASAN
(Directors)
ANNEXURE TO THE DIRECTORS' REPORT
Information as per section 217(1)(e) of the Companies Act, 1956 read with
the Companies (Disclosure of Particulars in the report of the Board
Directors). Rules 1988 and forming part of the Director's Report for the
period ended 31st March, 2005.
CONSERVATION OF ENERGY
Measure taken -
1. Regrouping of control switch for lighting.
2. Proper maintenance programme to optimise power consumption by frequent
checks of machines & electrical appliances.
3. Control over consumption H.S.D. to optimise its use and achieve maximum
results.
FORM - A
Disclosure of particulars with respect to the consumption of energy
a) Power & Fuel consumption
Year ended
31-03-2005
1. Electricity
A i) Purchased Units (in lacs) -
ii) Total amount (Rupees in lacs) -
iii) Rate Unit (Rs) -
B Own Generation
i) Through Diesel Generator (Units in lacs) -
ii) Through Steam Turbine / Generator -
2. Coal -
3. Furnace Oil -
4. Others -
b) Consumption per unit of production (MT)
iii) Electricity (in Units) -
iv) Furnance Oil (KL) -
v) LDO (KL) -
TECHNOLOGY ABSORPTION ADAPTION AND INNOVATION
- Technological advancement for manufacturing Helical springs by in house
research and development efforts and improvement of product reliability.
- Better results through high quality control resulting in increasing self
reliance & product consistence.
- Modification in tools & equipments for quality improvement & substitution
of imported spares.
- Design improvement to meet local needs.
FOREIGN EXCHANGE EARNINGS AND OUTGO
- Details of foreign exchange earnings & outgo are given in Schedule 12 in
Note No.21,22,23 and 24 of the enclosed accounts.
PARTICULARS OF EMPLOYEE AS REQUIRED UNDER SECTION 217(2A) OF THE COMPANIES
ACT, 1956
1. Particulars of employees who were in the employment of the company in
receipt of remuneration not less than Rs. 2,00,000/- per month if employed
for a part of the year.
-NIL-
2. Particulars of employees who were in the employment of the company in
receipt of remuneration not less Rs. 24,00,000/- per annum if employed
throughout the year.
-NIL-
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