INTEGRAL KNIT COMPANY LIMITED
ANNUAL REPORT 2007-2008
Your Directors present herewith the Twentieth Annual Report of your Company
together with the Audited Accounts for the year,ended 31st March, 2008.
1. FINANCIAL RESULTS (Rs. In Lacs)
Year Ended Year Ended
Net Sales 152.80 198.00
Other Income 2.92 17.18
Total Expenditure 192.53 188.09
Gross Profit/Loss after -36.81 27.10
Interest but before
Depreciation and Taxation
Depreciation 52.08 55.89
Provision for Taxation - -
Net Profit/Loss -88.89 -28.79
Paid up Equity Share Capital 454.67 454.67
Your Directors do not recommend any Dividend during the Year under review
due to losses.
The knitting division took a hit due to a general recession in the garment
export industry due to the falling dollar value last year, This was a
factor total beyond the company's control.
We were successful in getting. permission to shift the machines. from Lower
parel to Silvassa, This has helped in getting greater production
In order to mitigate the effect of loss of sale. the; company,
took timely action & implemented several cost cutting measures.
The situation this financial year looks more stable in terms of business:
The company is also confident that the effect of all the cost control
exercises implemented last season year will have a positive bearing this
The Loss has increased substantially by Rs. 37,51,558/- due to
implementation of Accounting Standard 11 on Foriegn Currency Translation in
the current year as a result of which the difference in Foriegn Exchange
Rate pertaining to the Fixed Assets has been debited to the Profit & Loss
Account instead of debiting Fixed Asset Account. This adjustment is carried
out right from the date of Acqisition of Imported Fixed Assets as suggested
by the Statutory Auditors of the Company.
The company is trying to ensure that all institutions concerned in this
matter take a realistic & practical approach to the settlement. This is
taking some time since there are 3 institutions involved. We are pursuing
the BIFR matter strongly & are hopeful of a settlement this year.
4. FIXED DEPOSITS:
The Company does not have any overdue or unclaimed deposits as on 31st
5. CONSERVATION OF ENERGY. TECHNOLOGICAL ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO:
In terms of Section 217(1)(e) of the Companies Act, 1956 read with the
Companies (Disclosure of Particulars in the Report of Board of Directors)
Rules, 1988, is annexed hereto.
6. PARTICULARS OF EMPLOYEEs:
Particulars of Employees are required under Section 217(2A) of the
Companies Act, 1956 read with Companies (Particulars of Employees) Rules,
1975, as amended is not given as there was no employee drawing the salary
as per the limits mentioned in that Section.
Mrs. Bindu Sheth, a Director of the Company retires by rotation at the
forthcoming Annual General Meeting but being eligible offers herself for
8. LISTING OF SHARES:
The Company's shares are listed on Mumbai Stock Exchange. The Company
has,already paid listing fees to them.
9. DIRECTORS RESPONSIBILITY STATEMENT:
Pursuant to the requirement under Section 217(2AA) of the Companies Act,
1956 with respect to the Directors Responsibilities Statement, it is hereby
i) That in the preparation of the Annual Accounts for the financial year
31st March, 2008, the applicable accounting standards have been followed
along-with proper explanation relating to material departures.
ii) That the Directors have selected such accounting policies and applied
them consistently and made judgment 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 profit or loss of the
Company for the year under review. '
iii) 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.
iv) That the Directors have prepared the Accounts for the financial year,
ended 31St March, 2008 on a going concern basis.
10. CORPORATE GOVERNANCE:
A separate section on Corporate Governance is included in the Annual Report
and the Certificate from the Company's auditors confirming the compliance
of conditions on Corporate Governance as stipulated in revised Clause 49 of
the Listing Agreement-with the Stock Exchanges is annexed hereto.
Shareholders are requested to re-appoint Auditors M/s. P. M. Turakhia &
Company, Chartered Accountants retire as Auditor of the Company at the
ensuing Annual General Meeting and are eligible for re-appointment. The
Company has also received a Certificate u/s 224 (1-B) of the Companies Act,
The Company's properties have been adequately insured against fire, riot,
flood and earthquake risks.
The industrial relations during the year were by and large satisfactory.
Your Directors wish to express their appreciation to-all employees of the
Company at all levels for the sustained untining efforts and immense
contribution to the level of performance and growth of business during the
The Board wishes to place on records-its appreciation to the Company's
Shareholders for their valuable support.
For and on behalf of the Board
For INTEGRAL KNIT CO. LIMITED
Place: Mumbai AMAR A. SHETH
Dated: 27th June, 2008. Director
ANNEXURE TO DIRECTORS
INFORMATION REQUIRED UNDER SECTION 217(1)(e) OF THE COMPANIES ACT, 1956.
A. CONSERVATION OF ENERGY:
Constant effOrts are being made to reduce consumption of energy.
DISCLOSURE OF PARTICULARS WITH OF CONSERVATION OF ENERGY:
1st April 2007 to 1st April 2006 to
31st March, 2008 31st March, 2007
POWER AND FUEL CONSUMPTION
Units/KWH 379035 505858
Total Amount 1349565 1679801
Rate/unit(Rs.) 3.56 3132
(b) OWN GENERATION
Through Diesel Generator.
Diesel Consumed (Liters) 4600 6612
Total Cost (Rs.) 156508 234512
Average Cost (Rs./Liters) 34.02 35.47
B. TECHNOLOGY ABSORPTION:
No new Products are being developed.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO:
(i) Activities relating to exports, initiatives taken to increase exports.,
development of new products and Services and export plans.
Mentioned in the Main report.
(ii) Total Foreign exchange used and earned:
(a) Total foreign exchange used Rs. 3,46,376/- (8,12,794/-)
(b~ Total foreign exchange earned Rs. 3,56,173/- (Nil)
BY ORDER OF THE BOARD OF DIRECTORS
Place: Mumbai AMAR A. SHETH
Date : 27th June, 2008. (Director)