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Kareems Spun Silk Ltd.

BSE: 514294 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Kareems Spun Silk Ltd
NSE 05:30 | 01 Jan Kareems Spun Silk Ltd

Kareems Spun Silk Ltd. (KAREEMSSPUN) - Director Report

Company director report

KAREEMS SPUN SILK LIMITED ANNUAL REPORT 2007-2008 DIRECTOR'S REPORT To The Members of the Company: Your Directors present their Seventeenth Annual Report on the business and the operations of your Company along with the audited Statements of Accounts for the year ended 31st March, 2008 Financial Result: The financial results for the year under report are as follows: Rs. in Lakhs 31-03-2008 31-03-2007 Sales 123.29 29.41 Other Income 2.86 - Loss before interest and depreciation 41.77 23.12 Less: Interest - - Depreciation 52.87 52.88 Loss for the year 94.64 76.00 Add: Previous years Loss 804.16 728.16 Loss transferred to Balance Sheet 898.80 804.16 Your Directors reports better sales performances for the year ended 31-03- 2008 as compared to the previous year. However the manufacturing and other expenses have been substantial owing to the poor condition of plant and machinery, requiring substantial expenses towards repair, overhaul and maintenance. Your management hopes that the current year performance would be better. BOARD OF DIRECTORS: Sri A.K. Abdul Samad will be retiring by rotation at the ensuing Annual General Meeting and being eligible offers himself for re-appointment. You are requested to reappoint him as Director of the Company. Directors' Responsibility Statement: The Directors' hereby state that: i) In the preparation of the annual accounts, the applicable accounting standards had been followed and there had been no material departures; ii) They 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 at the end of the financial year and of the profit or loss of the Company for that period; iii) They had 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) They had prepared the annual accounts on a going concern basis Corporate Governance: The Company is a sick Industrial undertaking and was not functioning for few years. Hence it has not been possible to form any committees of the Board, as required in terms of Clause 49 of the Listing Agreement. However, the Board of Directors is committed to reviving the operations of the Company and is hopeful of a positive outcome. Auditors: M/s S. Janardhan & Associates, Chartered Accountants, Bangalore, the Auditors of the Company retire at the conclusion of this Annual General Meeting and being eligible, are recommended for re-appointment. Disclosure of particulars: The particulars relating to conservation of Energy, Technology Absorption and Foreign Exchange earnings and out-go as required under Section 217(i) (e) of the Companies Act, 1956 and the Companies (Disclosure of particulars in the Report of Directors) Rules, 1988 are enclosed as part of the report. Acknowledgement: The Directors wish to place on record their appreciation for the whole hearted co-operation by the bankers, customers and suppliers. for and on behalf of the Board of Directors A.K. ABDUL SAMAD Chairman Place: Bangalore Date : 30th July, 2008 ANNEXURE TO THE DIRECTORS' REPORT The Companies (Disclosure of particulars in the Report of Directors) Rules, 1988. A. CONSERVATION OF ENERGY: a) Though the plant has been commissioned, operations have not reached full potential because of balancing and technical fine tuning exercises still required to be done and shortage of suitable technical manpower. b) The total energy consumption and energy consumption per unit of production is given in the prescribed Form-`A' below FORM - `A' POWER AND FUEL CONSUMPTION Current Previous Year Year Electricity: a) Purchased Units (KWH) 170098.25 77334 Total Amount (Rs.) 794105 366452 Rate per unit (Rs.) 4.67 4.74 b) Own Generation: i) Through Diesel Generator: Units (KWH) NIL NIL Units (ICWH) per Litre of Diesel Oil NIL NIL Cost per unit (Rs.) N.A N.A ii) Through Steam Turbine/Generator NIL NIL B. TECHNOLOGY ABSORPTION, ADOPTION AND INNOVATION: The Company's technical personnel are trained in reputed Spun Silk Industry in Europe. No foreign technology has been employed by the Company. C. FOREIGN EXCHANGE EARNINGS AND OUT GO: The particulars of Foreign Exchange earnings and out-go are given in Notes on Accounts. for and on behalf of the Board of Directors A.K. ABDUL SAMAD Chairman Place: Bangalore Date : 30th July, 2008