HITKARI INDUSTRIES LIMITED
ANNUAL REPORT 2006-2007
The Director are pleased to present Thirteenth Annual Report together with
audited accounts for the financial year ended 31st March, 2007.
(Rs. In Lac) (Rs. In Lac)
Current Year Previous Year
Sales & Operational Income 3308.77 3035.18
Gross Profit before Interest, 51.32 263.35
Depreciation and Taxation
1) Interest 135.71 123.35
2) Depreciation 83.02 79.30
3) Provision for F.B.T. 5.00 7.00
Net Loss After Tax (172.36) 54.14
Transferred to Reserve - 54.14
The working results of your company for the financial year ended 31st
March, 2007 reflect loss for the year. The company has achieved total net
income of Rs. 3308.77 Lac as compared to Rs. 3035.18 Lac in the previous
year. Loss was Rs. 172.36 Lac as against Rs. 54.14 Lac Profit for the year
after Tax for the last year. The loss is due to increase in raw material
prices without comparative increase in selling prices and higher incidence
In view of loss, the Directors are not recommending dividend for the
financial year 2006-2007.
DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to requirement under Section 217(2AA) of the Companies (Amendment)
Act, 2000, your Directors confirm:
1. That in the preparation of the annual account for the financial year
ended 31st March, 2007, the applicable accounting standards have been
followed along with proper explanation relating to material departures;
2. That the Directors have selected such accounting policies and applied
them consistently and made judgements 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 of the Company
for the year under review;
3. That the Directors have taken proper and sufficient care for the
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;
4. That the Directors have prepared the accounts for the financial year
ended 31st March, 2007 on a going concern basis.
In pursuance to Section 212 of the Companies Act, 1956, the audited
statement of accounts along with the report of the Board of Directors of
Terra Films (P) Ltd. are annexed. Further pursuant to Accounting Standard
AS-21 your Directors have pleasure in attaching the Consolidated Financial
Statement as at 31st March, 2007 which from part of Annual Report and
M/s S.R. Kapur & Company, Chartered Accountants, New Delhi who retire at
the ensuing Annual General Meeting and being eligible offer themselves for
reappointment. The company has received a certificate as required under
Section 224(1B) of the Companies Act, 1956 to the effect that their
reappointment, if made, would be within the limits specified in that
The Auditor's report as well as notes on accounts are self explanatory and
do not require any further comments.
DEMATERIALISATION OF SHARES:
The shares of the company are available for dematerialisation with both the
depositories i.e National Securities Depository Limited (NSDL) and Central
Depository Services (India) Limited (CDSIL); As on 31st March, 2007,
2867250 equity shares representing 89.45 percent of the paid up equity
shares of the company have been dematerialised.
REPORT ON CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION & ANALYSIS REPORT.
Report on Corporate Governance along with the certificate of statutory
auditors of the company forms part of this Annual Report. The management
Discussion and Analysis Report also forms the part of this Annual Report.
LISTING AT STOCK EXCHANGES:
The equity shares of the Company are listed on the Mumbai, Ludhiana &
Calcutta Stock Exchange. Listing fees for Stock Exchange has been paid.
PARTICULARS OF EMPLOYEES:
There was no employee who was covered under Section 217(2A) of the
Companies Act, 1956.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN
EXCHANGE EARNINGS & OUT GO:
The details under Section 217(1)(e) of the Companies Act, 1956 in respect
of Companies (Disclosure of Particulars in the report of Board of
Directors) Rules, 1988 to the extent of disclosure of particulars with
respect to conservation of Energy and Technology absorption are not
application to your company. Your company is constantly working for
Research and Development as well as for technical absorption to improve its
quality of production by innovation means. Total Foreign Exchange earning
was Rs. 54.97 Lacs and foreign exchange outgo was Rs. 1.60 Lacs during the
year ended on 31st, March, 2007.
Your directors wish to place on record their appreciation and acknowledge
with gratitude the support and cooperation extended by banks, Government
Authorities, Customers, Employees and others and thank the shareholders for
the confidence reposed in the company.
By order of the Board
By order of the Board
For Hitkari Industries Ltd
Place : NOIDA
Date : 29.8.2007