MAFATLAL DYES AND CHEMICALS LIMITED
ANNUAL REPORT 2007-2008
The financial year of the Company has been closed on 31st March, 2008. Your
Directors therefore present their Report together with the Audited Accounts
for the financial year of Twelve Months ended 31st March, 2008.
FINANCIAL RESULTS 2007-2008 2006-2007
12 months 15 months
(Rs. in Lakhs)
Profit/(Loss) before Depreciation and Tax (23.78) (296.90)
Less: Depreciation 6.58 9.98
Profit/(Loss) before Tax (30.36) (306.88)
Add: Excess Provision of Tax of earlier year Nil Nil
Profit/(Loss)after Tax (30.36) (306.88)
Less: Provision for Tax Nil Nil
Loss after tax (30.36) (306.88)
Balance as per last Balance Sheet (475.78) (168.90)
The total turnover during the reporting period had slightly increase from
Rs.1.64 Crores (proportionate for twelve months to Rs. 1.73 Crores in
twelve months thereby showing increase by around 5%.
ENERGY CONSERVATION, ETC.:
Since the company does not have manufacturing activities during the year
under report, particulars of conservation of energy, technology absorption,
are not mentioned in this report. The foreign exchange earnings and outgo
during the year under report were nil.
AMALGAMATION OF SUBSIDIARY COMPANIES:
Your Company's four wholly owed Subsidiaries viz. Mayoga Investments Ltd,
Maparna Investments Ltd., Mahagauri Investments Ltd. and Mahananda
Investments Ltd. have filed petition for merger with our company. The High
court at Mumbai vide its order dated 8'', October, 2004, has admitted
petition of merger filed by Mayoga Investments Ltd, Maparna Investments
Ltd., and Mahagauri Investments Ltd. The petition of merger filed by
Mahananda Investments Ltd. in High Court at Ahmedabad is pending for final
A Statement pursuant to Section 212 of the Companies Act, 1956, relating to
your Company's Subsidiaries is attached to the Balance Sheet.
CONSOLIDATED FINANCIAL STATEMENT:
As required by SERI Regulation and by Accounting Standard 21 of the
Institute of Chartered Accountants of India, a Consolidated Financial
Statement of your Company together with the Accounts of Subsidiaries is
reported in the Annual Report.
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors
state as follows:-
a) In the preparation of the Annual Accounts, the Applicable Accounting
Standards have been followed along with proper explanation relating to
b) Appropriate Accounting Policies have been selected and applied
consistently and have 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 as at 31st March,2008.
c) Proper and sufficient care has been taken 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
detecting fraud and irregularities.
d) The Annual Accounts have been prepared on going concern basis.
MANAGEMENT DISCUSSIONS & ANALYSIS:
A separate Note on Management Discussions & Analysis is enclosed as per
Annexure I and forms part of this Report.
A report of the Corporate Governance Code along with a certificate form the
Practicing Company Secretary regarding compliance of conditions of
Corporate Governance as also the Management Discussion and Analysis Report,
stipulated under Clause 49 of the Listing Agreements are annexed to this
report. The company has taken efforts to appoint a company secretary
however considering present pay structrue we cannot afford to have full
time company secretary, hence services of senior practicing Company
secretary Mr.Rakesh Kapur are utilized.
Messers..Ponkshe Kulkarni & Co., Chartered Accountants, retire as Statutory
Auditors at the Conclusion of the ensuing Annual General Meeting and are
eligible for re-appointment. The Audit committee of the Board recommends
the re-appointment of Messrs Ponkshe Kulkarni & Co. as Auditors for the
year 2008-09. Messers Ponkshe Kulkarni & Co. have confirmed their
eligibility and willingness to continue to act as Auditors of the Company
for the current year, if appointed.
EMPLOYEES Industrial relations with the employees at various levels
continue to be cordial. There are no employees falling under provisions of
Section 217(2A) of the Companies Act, 1956.
Your Directors express their thanks to the employees at all levels for
their continued co-operation to the Management during the period year under
The observations made by the Auditors against item 4(f)(i) to (x) of their
Report, have been duly clarified in Notes in the Schedule 18 forming part
of the Balance Sheet and Profit and Loss Account, which are self-
On behalf of the Board
Atulya. Y. Mafatlal
Mumbai, Dated, 18th August, 2008.
MANAGEMENT DISCUSSION & ANALYSIS Industry Structure and Development Your
Company is now continuing its trading activities in a wide range of its
outsourced products like Vat Dyes, auxiliaries and certain speciality
Opportunities, Threats, Risks and Outlook:
Your Company expects to enhance its turnover by way of diversification
towards hydroes, trading in metal bases, and manufactured textile garments
and negotiations towards these directions are under progress. We are also
trying to enter south-east market specially Orissa.
Segment wise performance:
Currently'there is only one income generating segment i.e. Trading.
Internal Control System:
At present your Company is under reorganization of internal control system.
Keeping with the Business volume, the company has re-organized its staff
strength. The present staff strength is 14. Which is further reduced after
date of balance sheet. This has helped to save the employee cost