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PIL Industries Ltd.

BSE: 521153 Sector: Others
NSE: N.A. ISIN Code: INE121F01015
BSE 05:30 | 01 Jan PIL Industries Ltd
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PIL Industries Ltd. (PILINDS) - Director Report

Company director report

To,

The Members,

Your Directors are pleased to present the Twenty-Fifth Annual Report together withAudited Statements of Accounts for year ended 31st March, 2012.

1. FINANCIAL HIGHLIGHTS :

The operating results of the Company for the year under review are as follows :

(Amount in Rupees)

Particulars Year ended Year ended
31/03/2012 31/03/2011
Sales Income 7,14,12,07,941 2,31,38,65,231
Other Income 4,33,25,884 2,74,99,883
Total Revenue 7,18,45,33,825 2,30,41,12,037
Less: Expenses
Finance Expenses 43,79,66,671 43,44,89,810
Depreciation 50,47,024 50,34,640
Other Expenses 6,94,97,49,742 2,47,12,67,873
Profit/(Loss)
Before Tax (208,229,612) (172,190,476)
Less: Prior period adjustments - 32,882
Profit/(Loss) After Tax (carried to Balance Sheet) (208,229,612) (172,223,358)
Earnings Per Share
Basic & Diluted (31.52) (26.07)

2. DIVIDEND:

In view, of Loss, your Directors do not recommend any dividend for the year ended 31 stMarch, 2012.

3. OPERATIONAL REVIEW & YEAR IN RETROSPECT:

During the year, your Company has earned total revenue of Rs. 71,845.34 lacs (includingRs. 433.26 lacs other income) as compared to Rs. 23,041.12 lacs (including Rs. 274.99 lacsother income) for the previous accounting year. The Loss after tax for the year was Rs.2,082.30 lacs as against loss of Rs. 1,722.23 lacs previous year.

The Global and Domestic markets have been volatile through out the year affecting thebusiness environment in the Country. Uncertainity of liquidity in the market has alsoimpacted cost of the borrowing of the Company. The Company is looking for various mode andmeans to reduce the debt and improve margin / profitability of the Company in comingyears.

4. DIRECTORS:

Mr. Anil Biyani retire by rotation and being eligible offers himself for reappointment.

5. AUDIT COMMITTEE :

The composition of the Audit Committee as on date is as follows :

• Mr. Vijay Biyani Chairman
• Mr. Anil Biyani Member
• Mr. Sunil Biyani Member

6. FIXED DEPOSITS :

Your Company has not accepted any deposits within the meaning of Section 58A of theCompanies Act, 1956 and the rules made there under during the year under review.

7. AUDITORS :

M/s. NGS & Co., Chartered Accountants, the Auditors appointed at the Twenty FourthAnnual General Meeting had resigned during the year and M/s. R. S. Ajwani & Co.,Chartered Accountants, were appointed as Statutory Auditors of the Company in their placeat the Extraordinary General Meeting held on 25th April, 2012 to hold office till theconclusion of the ensuring Annual General Meeting.

M/s. R. S. Ajwani & Co., Chartered Accountants, Statutory Auditors of the Company,being eligible for re-appointment, have furnished certificate that their reappointment, ifmade, would be within the limits prescribed under Section 224(1 B) and do not attract anydisqualification as specified in under Section 226(3) (e) of the Companies Act, 1956. Themembers are requested to consider and appoint Statutory Auditors of the Company from theconclusion of ensuing Annual General Meeting till the conclusion of the following AnnualGeneral Meeting.

8. AUDITORS' QUALIFICATION:

The qualification made by the Auditors with regards to not meeting the criteria laiddown under AS - 16 - Borrowing Cost, we wish to state that the investments made by theCompany are generally in the nature of strategic investments and not for speculative ortrading purposes. Strategic investment being one of the core business of the Company, theinterest paid on amount borrowed for such investments have been capitalised as part ofcarrying cost.

9. SUBSIDIARY COMPANIES:

During the year, Wholewealth Limited, Hong Kong ceased to be a subsidiary of theCompany.

Weavette Texstyles Limited, a company engaged in designing, manufacturing and tradingin fabrics continued to be subsidiary of the Company.

A statement pursuant to section 212 of the Companies Act, 1956 relating to subsidiarycompany has been given as an annexure to the Annual Report.

10. PARTICULARS OF EMPLOYEES :

As there were no employees drawing remuneration in excess of the prescribed limits, theparticulars of employees as required under Section 217(2A) of the Companies Act, 1956 readwith Companies (Particulars of Employees) Rules, 1975, is not applicable.

11. CONSERVATION OF ENERGY, RESEARCH & DEVELOPMENT, TECHNOLOGY ABSORPTION, FOREIGNEXCHANGE EARNINGS AND OUTGO & EXPORT INITIATIVE

(A) Conservation of Energy & Technology Absorption

The particulars as prescribed under Section 217(1) (e) of the Companies Act, 1956 readwith the Companies (Disclosure of particulars in the Report of Board of Directors) Rules,1988 are not applicable to your company.

(B) Foreign Exchange Earning and Outgo

There are no earnings or outgo of foreign exchange during the year under review. TheCompany is not proposing in near future to go for any export or international businessactivities.

12. DIRECTORS' RESPONSIBILITY STATEMENT:

Pursuant to the requirements under Section 217 (2AA) of the Companies Act, 1956, yourDirectors hereby state and confirm that:

• in the preparation of the annual accounts for the year ended 31st March, 2012,the applicable accounting standards have been followed along with proper explanationrelating to material departures;

• they have selected such accounting policies and applied them consistently andmade judgements and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Company at the end of the financial year on 31stMarch, 2012 and of the Loss of the Company for that year;

• they have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act, 1956 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities;

• they have prepared the annual accounts for the year ended 31st March, 2012 on a'going concern' basis.

13. ACKNOWLEDGEMENT:

We take this opportunity to thank shareholders, bankers, customers, and employees ofthe Company for the valuable contribution made by each of them and look forward to theircontinued patronage in future.

For and on behalf of the Board

Anil Biyani Vijay Biyani
Director Director

Place : Mumbai

Date : 22nd August, 2012

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