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Intercorp Industries Ltd.

BSE: 531551 Sector: Others
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Intercorp Industries Ltd
NSE 05:30 | 01 Jan Intercorp Industries Ltd

Intercorp Industries Ltd. (INTERCORPINDS) - Director Report

Company director report

INTERCORP INDUSTRIES LIMITED ANNUAL REPORT 2005-2006 DIRECTOR'S REPORT Dear Shareholders, It gives us great pleasure in presenting to you the Sixteenth Directors' Report for the period ending 31st March, 2006. FINANCIAL HIGHLIGHTS (In Rs. Lacs) 31.3.2006 31.3.2005 1. Net Sales/Income from Operation - - 2. Other Income 3.00 3.01 3. Total Expenditure 3.71 1503.06 4. Interest - - 5. Depreciation 0.71 0.71 6. Gross Profit(+)/Loss(-) before tax(1+2-3-4-5) (1.42) (1500.76) 7. Provision for taxation - - 8. Net Profit(+)/Loss(-) (6-7) (1.42) (1500.76) 9. Paid up equity share capital 761.35 761.35 10. Reserve excluding revaluation reserve 1911.30 1909.89 DIVIDEND In view of losses, your Directors have not proposed any dividend. GENERAL OVERVIEW Impairment losses have been incorporated where applicable as per suggestions from Auditors. The Company is interalia facing acute cash crunch on one hand and on the other is also pursuing recovery of its dues from various parties against whom legal proceedings are going on in various fore. FIXED DEPOSITS The Company has not accepted any fixed deposits during the year under review. DIRECTORS Shri Anant Ram and Shri Anand Shrivastav, Directors of the Company will retire by rotation at the ensuing Annual. General Meeting and being eligible offer themselves for reappointment. The Board recommends their reappointment DIRECTORS' RESPONSIBILITY STATEMENT Pursuant to provisions of Section 217(2AA) of the Companies (Amendment) Act, 2000, the Directors confirm : i) that in the preparation of annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures if any; ii) that the Directors had 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 as at the end of the financial year and of the profit or loss of the Company for that period; iii) that the Management had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act so to prevent and detect fraud and other irregularities; AUDITORS M/s Jagdish Chand & Company, Chartered Accountants, retire at the ensuing Annual General Meeting and being eligible offer themselves for reappointment. The Company has received the Certificate from the Auditors to the effect that the re-appointment, if made, would be within the prescribed limits under Section 224(1-B) of the Companies Act 1956. The Board recommends their re-appointment. Regarding Auditors' observations in the Auditors Report, the respective Notes to the Accounts are self explanatory. However, Management's view to the Auditors observations are specifically replied as under :- a) (Ref. 2(d)) : The matter is subjudice as also no confirmation has been received from Bank. b) (Ref. 2(e)) : There is no demand from the concerned authorities thus no provisions made. c) (Ref. 2(f)) : Since the matter is subjudice no provision for interest for the year has been provided. d) (Ref 2(g)) : The points covered in the comments have already been explained above under sub paras (a) to (c). Management's view on Annexure to the Auditors Report are specifically reps ad as under. a) (Ref. Point x) :The effect of interest not taken as the matter is subjudice. b) (Ref. Point xi) :The default is due to non receipt of balance of application money and non availability of funding from IDBI Limited for which application was made many years ago. Hence the project is at a stand still. Management is exploring a rehabilitation package with the support of the State Govt., IDBI Limited including approaching BIFR. PARTICULARS OF EMPLOYEES There are no employees whose particulars are required to be given Under Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules 1975. PARTICULARS ABOUT CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO a. The Company does not have any Research & Development program as of yet except required for the LSCT for Biotech-Hybrid Seeds. b. Company is currently in absorption of technology of Hybridization of Seeds. c. The Foreign Exchange earning and out go were nil during the year. COMPLIANCE CERTIFICATE A certificate from the Auditors of the Company regarding compliance of conditions of Corporate Governance as stipulated under clause 49 of the Listing Agreement is attached to this report. For and on behalf of the Board ANAND SHRIVASTAV MANAGING DIRECTOR Place : New Delhi Date : 19th July, 2006 MANAGEMENT DISCUSSION AND ANALYSIS The continued non-availability of fund ever since past many years has crippled working of the Company. The Company is interalia facing acute cash crunch on one hand and on the other also pursing recovery of its dues from various parties against whom legal proceedings are going on in various fora. The investments made on the projects were viable and the management may lead to new opportunity to seek a possible collaboration to implement the project if necessary with the knowledge / consent. Notwithstanding the ongoing proceedings in the DRT against the Company by IDBI, the Board strongly felt that alternative avenues for raising funds be explored continuously.