ANNUAL REPORT 2004-2005
Your Directors present herewith the Twelth Annual Report and the Audited
Account of the Company for the period ended 31st March, 2005.
1. FINANCIAL RESULTS:
Particulars 2004-2005 2003-2004
(Rs. Lacs) (Rs. Lacs)
Sales & Other Income 102.84 239.54
Profit/(Loss) before Depreciation and Interest. 2.29 (230.98)
Less: Depreciation & Write-off 0.34 19.72
: Interest - -
Operating Profit/(Loss) 1.95 (250.70)
Add: Provision for Diminution - 192.62
In value of Investment
Net Profit/(Loss) for the Year 1.95 (443.32)
During the year under review, your Company has not performed well, due to
cut throat competition. Industrial recession and over all liquidity crisis.
Also Company has disposed off Land & Building alongwith machinery (Factory)
during the current year on account of mounting losses and to repay the
On account of loss, your Directors did not recommend any dividend.
Mr. Chetan Shah, who retires by rotation and he is eligible for
M/s. Madhusudan C. Mashruwala & Co., Chartered Accountant, Ahmedabad,
Auditors of the Company retire an conclusion of ensuing Annual General
Meeting and being eligible, offers themselves for appointment.
Company do not have any employee drawing remuneration in excess of
Rs.2,00,000/- p.m. So Section 217(1)(e) need not be attracted.
During the year under review Company has not accepted any Public Deposit.
8. DIRECTOR'S RESPONSIBILITY STATEMENT:
The Directors confirm that:
(a) In preparing of the Annual Accounts, the applicable accounting
standards have been followed along with proper explanation related to
(b) The Director have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give true and fair view of the state of affairs of the
Company as at the end of March 31, 2005 and the profit for the year ended
on that date.
(c) The Directors have taken proper and sufficient care for the maintenance
of adequate accounting records in accordance with the provisions of the Act
for safeguarding the assets of the Company and for preventing and detecting
fraud and other irregularities.
(d) The Directors have prepared the Annual Accounts on the going concern
9. CORPORATE GOVERNANCE:
A report on Corporate Governance is annexed to this report and is a part of
10. ENERGY, TECHNOLOGY, FOREIGN EXCHANGE:
Details relating to energy, technology absorption is annexed to this
During the year under review, there was foreign exchange earning and outgo
as mention in Annexure to Director Report.
11. SUBSIDIARY COMPANY/ CONSOLIDATED ACCOUNTS:
As required under Section 212 of the Companies Act 1956, the Audited
statements of accounts along with the report of the Board of Directors and
the Auditors Report thereon of the Subsidiary Company, Saturn Technologies
Ltd. for the Financial Year ended 31st March, 2005 are enclosed. As
required by the Accounting Standard 21, consolidated Financial Statements
are also annexed herewith.
12. MANAGEMENT DISCUSSION AND ANALYSIS:
A report on the Management Discussion and Analysis for the financial year
under review is annexed and forms part of this report:
The Board of Directors thankfully acknowledgement the co-operation and
confidence of the shareholders, customers, banker and other Govt. Agencies.
The Board conveys their gratitude towards GIIC for Sympathetic and
considerate treatment to the Company, while repaying outstanding dues of
the Company as a part of settlement. The Board of Directors wishes to place
on record their appreciation and gratitude for the services rendered by the
workers, staff and executives of the Company.
For and on behalf of the Board
Place: Ahmedabad Sunil M. Shah
Date : 31st July, 2005. Chairman
ANNEXURE TO DIRECTOR'S REPORT
Particulars under Companies (Disclosure of Particulars in the Report of
Board of Directors) Rules, 1988 for the year ended on 31st March 2005.
FORM - A
Disclosure of Particulars with respect to Conservation of Energy:
Particulars 2004-2005 2003-2004
1. Purchased Unit (KWH) 61983 97170
2. Total Amount (Rs.) 487329 645909
3. Rate/Unit (KWH) (Rs.) 7.86 6.65
(B) Diesel Oil:
1. Quantity (Ltrs.) 902 1095
2. Total Cost (Rs.) 24904 25264
3. Rate (Litre/Rs.) 27.60 23.07
Technology Absorption, Adaptation and Innovation:
1. Technology absorption and adaptation in new areas are under
2. The Company has planned monitoring of Plant performance, plant
modification, efforts for plant reliability and better capacity
Foreign Exchange Earnings and Outgo:
Foreign Exchange used - 72493
Foreign Exchange Earned 1427878 2972115
MANAGEMENT DISCUSSION AND ANALYSIS
I. OVERALL REVIEW:
The Overall performance during the year 2004-2005 has been satisfactory.
2. FINANCIAL REVIEW:
The Sales for the year ended 31st March 2005 was Rs.42.68 lacs. This
decrease was mainly on account of Global Technology recession.
3. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:
Considering the size of the Company, your Company has adequate system of
internal control to provide reasonable assurance that assets are
safeguarded and protected from unauthorized use or disposition.
The Internal audit is carried our internally and reports reviewed by the
Management at regular intervals.
4. BUSINESS ENVIRONMENT:
The performance of the Company for the year under review was satisfactory.
The Company is now on the range of verge venturing into various techno-
5. RISK AND CONCERN:
The Building, plant and machinery, vehicle and stock's of the Company are
6. CAUTIONARY STATEMENT:
Statements in this report on management discussion and analysis may be
forward looking statements within the meaning of applicable security laws
or regulations. These statements are based on certain assumptions and
expectations of future events. Actual results could however, differ
materially, from. those expressed or implied. Important factors that could
make a difference to the Company's operations include global and domestic
demand supply conditions, finished goods prices, raw material cost and
availability and changes in government regulation and tax structure,
economic development within Indian and the countries with which. the
Company has business contract and other factors such as litigation such as
litigation and industrial relations.
The Company assumes no responsibility in respect of forward looking
statements, which may amended or modified in future on the basis of
subsequent developments, information or events.
For and on behalf of the Board
Sunil M. Shah
Chairman and Managing Director
Date : 31st July, 2005.