ANNUAL REPORT 2000-2001
Your Directors have pleasure. in presenting the Twenty-Seventh Annual
Report of INTERCRAFT LIMITED along with the Audited Accounts of the Company
for the year ended 31st March 2001.
The Directors regrets that the Company received a set back during the year
under review due to lack of export orders since 1998-99 onwards and overall
recession and high competition in Ready Made Garments retailing Business.
The Company has suffered heavy tosses and the entire net worth of the
Company has been eroded. Based on the audited balance Sheet for the year
ended on 31st March, 2001, the Company has become a Sick Industrial Company
under Section 3(1)(O) of the Sick Industrial Companies (Special Provisions)
Act, 1985 (SICA) and the Directors are of the opinion that reference under
Section 15 (1) of the SICA may be filed with Board for Industrial and
financial Reconstruction (BIFR).
In view of the losses for the period under review, your directors are not
recommending any Dividend.
M/s I.M.X. EXPORTS LTD.
During the year under review, the company had been declared a Sick
Industrial Company by the BIFR. The Company is preparing revival scheme.
M/s. STICKWELL FASHIONS LIMITED
SFL was Co-promoted by your company with an installed capacity of 65
million pcs of Polyster Woven labels of International quality through its
computer operated automatic machines. During the financial year 2000-2001,
SFL couldn't procure any export orders & the domestic market for labels was
highly depressed. As a result, the Sales & Income of the Company in
financial year 2000-2001 were only to the tune of Rs. 235.91 lakhs.
During the year the Company has not accepted and/or renewed any fresh Fixed
Deposits. The deposits accepted by the Company stood at Rs. Nil (Previous
year Rs. Nil) as on 31st March 2001 except for unclaimed deposits amounting
to Rs. 6.33 lacs (Previous year Rs.6.33 lacs) from 33 (Previous year 33)
In accordance with the Articles of Association of the Company, Dr. (Mrs.)
Manju Mehta retires by rotation and is eligible for re-appointment.
Mr. Vijay Mehta was re-appointed as Managing Director of the Company w.e.f.
1st August 1999 and his tenure has expired on 31st July 2001. Keeping in
view the contribution of Mr. Vijay Mehta, the Board of Directors, subject
to your approval and other approvals, if any, have appointed Mr. Vijay
Mehta as Managing Director of the Company with effect from 1st August, 2001
for a further period of 2 years.
Since the last Annual General Meting of the Company, Mr. S.N.Mehta,
Chairman of the Company had expired on 7th August 2001. Further Mr.
Shiromani Sharma and Mr. Vishva Nath Kaul resigned from the Board on
account of personal reasons. Mr. J.K. Churamani was appointed as additional
Director on 29th Sept., 2000 resigned from the directorship on 29th Jan.,
2001 on account of personal reasons.
The Directors place on record their appreciation of the contribution made
by Mr. S.N.Mehta, Mr. Shiromani Sharma, Mr. Vishva Nath Kaul and Mr. J. K.
Churamani, during their tenure as a Director of the Company.
Mr. Rajesh Jerath And Mr. K. Naraynan were appointed as an additional
Directors of the Company, they hold office till the ensuing Annual General
Meeting and are eligible for appointment.
The Statement relating to M/S. Excel Fashions Limited, a subsidiary company
pursuant to Section 212 of the Companies Act, 1956 together with its
audited statements of accounts, Directors' Report and Auditors' Report
thereon for the year ended 31st March, 2001 is annexed.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE AND
The Information required under section 217 (1) (e) of the Companies Act,
1956,read with the Companies (disclosure of particulars in the report of
the Board of Directors) rules, 1988 is given in Annexure forming part of
M/s. S.P. Marwaha & Co, Chartered Accountants, retire at the conclusion of
the ensuing Annual General Meeting and being eligible offer themselves for
The observations of the auditors are explained wherever necessary in
appropriate notes to the accounts.
The Directors report that none of the employees fall under the provisions
of section 217 (2A) of the Companies Act, 1956 read with the Companies
(particulars of employees) rules, 1975.
DIRECTORS RESPONSIBILITY STATEMENT
As stipulated in section 217 (2AA) OF THE Companies Act, 1956, your
Directors subscribe to the "Directors" Responsibility Statement and
confirms as under:
i) That in the preparation of the annual accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures;
ii) That we have selected such accounting policies and applied them
consistently and made judgments 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 2000-2001 and of the profit or
loss of the Company for that period;
iii) That we have taken proper and sufficient care of the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and
preventing and detecting fraud and other irregularities; and
iv) That we have prepared the annual accounts on a going concern basis.
The Board of Directors wishes to pace on record their sincere appreciation
of the guidance, co-operation and assistance extended to the Company by the
Financial Institutions, Banks, Central & State Government departments,
franchisees, Suppliers, Customers, Shareholders and Staff members.
For and on behalf of the Board
NEW DELHI VIJAY MEHTA
25th October 2001 Managing Director
ANNEXTURE TO THE DIRECTORS REPORT
THE COMPANIES (DISCLOSURE OF PARTICULARS ON REPORT OF BOARD OF DIRECTORS)
A. Conservation of Energy
The production process of the Company is not energy intensive and there is
hardly any scope in reduction of consumption of energy.
B. Technology Absorption
This is not applicable in case of your Company
C. Foreign Exchange Earnings and Outgo
The Company has not received any export order since, 1998-99 onwards. As
such, earning and use of foreign exchange during the year was Nil.