RAJ IRRIGATION PIPES AND FITTINGS LIMITED
ANNUAL REPORT 2011-2012
Your Directors present the 28th Annual Report of the Company along with
Audited Statement of Accounts for the year ended 30th September, 2012.
1. FINANCIAL RESULTS (Rs. in lakhs)
Year ended Year ended
Particulars 30.09.2012 30.09.2011
Sales and Other Income 0 0
Administrative Expenses 10.19 8.26
Profit/(Loss) (10.19) (8.26)
Add: Prior Period Expenses 0 0
Add: Balance of Loss brought forward
from previous year (1093.14) (1101.41)
Balance Carried Forward (1111.61) (1101.41)
The Company did not nave any operations during the year. As such the
Company did not earn any income during the year. Due to administrative
expenses the Company incurred a net loss of Rs 10.19 lakhs.
The Company is trying to revive its business and is in the process of
crystallizing its future plans. The Management is taking its efforts in
In the event of the losses during the current financial year your Directors
are unable to recommend any dividend.
4. STATUS OF BIFR REFERENCE/SALES TAX MATTER
The Company was declared a sick Company under S1CA by the BIFR on
29.05.2002. The Hon'ble AAIFR. New Delhi had remanded the matter to BIFR by
its order dated 5th May,2008 directing the Company to submit an OTS based
rehabilitation scheme before BIFR. In its order dated 15.3.2010 the BIFR
noted that as the secured creditors have taken action under section 13(4)
of the SARFESI Act the reference of the Company stands abated under section
15(1) of the SICA.
The land, building, plant and machinery, electricals. mould & dies etc of
the two manufacturing units at Nagpur and Goa have been taken over /
disposed off to pay off one time settlement amounts to Secured Creditors.
Bank of India and MSFC. Therefore presently there is no production/sale and
there are no employees. There is a contingent liability of Rs.481,82.660
arising out of assessments of Sales Tax Department. Nagpur as the
department has charged Sales Tax on intermediate product manufactured and
sold during the Exemption period ending on 14.09.1991. These demands have
been contested by the Company and stay has been granted by Appellate
Authorities. Later, the Sponsoring Authority District Industries Center.
Nagpur recommended to the Sales Tax Department that the exemption be
granted to the Intermediate Products. However the Sales Tax Department.
Nagpur rejected the recommendation and even disregarded the advice of
'Joint Commissioner Sales Tax (HQ) Mumbai to amend the Exemption
Certificate. The Company has filed appeal against this rejection before the
Sales Tax Tribunal. As stated earlier, the appeals are also pending before
the Appellate Authorities. For one of the assessment years, the matter has
been referred to the Higher Bench of the Tribunal. The Higher Bench has
remanded the matter back to the Bench for proper order. The Company is
hopeful to succeed in the Appeals.
5. CORPORATE GOVERNANCE IS ENCLOSED AS ANNEXURE TO THIS REPORT
Reports on Corporate Governance and Management Discussions & Analysis are
annexed and form part of this report. Also Certificate on Compliance of
Corporate Governance issued by M/s D.S. Momaya & Co., Company Secretaries
is annexed to the report.
6. PARTICULARS OF EMPLOYEES
The particulars of Employees as required under Section 217(2A) of the
Companies Act. 1956, is not applicable as the Company does not have any
7. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, RESEARCH AND DEVELOPMENT
The particulars as required under the provisions of Section 217(l)(e) of
the Companies Act, 1956 in respect of conservation of energy and technology
absorption are not required to be furnished considering the fact that the
Company has sold its plants and not carrying on any manufacturing activity.
8. FOREIGN EXCHANGE EARNING AND OUTGO
The Company has not earned any foreign exchange during the year under
review. The Company has not spent any amount in foreign exchange.
In accordance with the provisions of the Companies Act, 1956, and the
Articles of Association of the Company. Mr. Damodarlal Nandlal Ladha
retires by rotation and is eligible for reappointment. The Board recommends
During the year, Mr. Santosh Kamankar, Mr. Vaibhav Malsane and Mr. Vikas
Malekar were inducted as Additional Directors of the Company under Section
260 of the Companies Act, 1956 who hold office only upto the date of
forthcoming Annual General Meeting. The Company has received notices from
some of the shareholders of the Company proposing their candidature for the
post of Directors. Your Directors commend their re-appointment as the
Directors of the Company liable to retire by rotation.
10. DIRECTORS' RESPONSIBILITY STATEMENT
Your Directors hereby declare:
i) That in preparation of the annual accounts, the applicable accounting
standards have been followed.
ii) That the directors 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 under review and for the profit or
loss of the Company for that period;
iii) That the directors had taken proper and sufficient care for the
maintenance of adequate accounting records m 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) That the directors had prepared the annual accounts on a going concern
11. FIXED DEPOSITS:
Your Company has not accepted Public Deposits within the meaning of Section
58A of the Companies Act, 1956.
12. AUDITORS AND AUDITORS1 REPORT
The Auditors M/s. Bhuchar & Chandak, Chartered Accountants, have expressed
their inability to continue as the Auditors of this company and their term
expires at the end of this Annual General Meeting. Further, M/s. M G
Shouche Chartered Accountants, have expressed their willingness to act as
the Statutory Auditors of the company and Company has received a
certificate from them stating that their re-appointment will be within the
limit prescribed under Section 224(1B) of the Companies Act.
The notes to the accounts referred to in the Auditors' Report are self
explanatory and therefore, do not call for any further comments.
The Board of Directors wish to place on record their appreciation for the
co-operation and support of the Company's Bankers, and all other
intermediaries concerned with the Company's business.
Your directors sincerely thank all members for supporting us during the
difficult days. We look forward to your continued support and reiterate
that we are determined to ensure that the plans are successfully
BY ORDER OF THE BOARD
Place: Mumbai. (V.D. SARDA)
Date : 31st October. 2012 DIRECTOR
Management Discussion And Analysis
Overall review, industry Structure and Developments:
The Company deals in the business of set-up of HDPE Pipes.
PVC Pipes, PVC Fittings & Sprinkler fittings.
As of now. India's Irrigation infrastructure is expanding by 1.8 Mha of
irrigation potential with a public outlay of Rs 7000 crore per annum.
Amidst competition from non-agricultural uses in households, industry and
environment, supply of irrigation will have to keep pace with the targeted
annual agricultural growth. India's irrigation sector is caught in a
vicious cycle. Inadequate funding for O&M over years has resulted in the
neglect of maintenance and upkeep of the irrigation system leading to
deterioration in the quality of irrigation service.
During the year under review, the company was not able to carry on any
business activity. The land, building, plant and machinery, electricals,
mould & dies etc of the two manufacturing units at Nagpur and Goa have been
taken over / disposed off to pay off one time settlement amounts to Secured
Creditors. Bank of India and MSFC. Therefore presently there is no
production/sale and there are no employees.
The company continues to make efforts to commence its operations once again
by locating more fruitful avenues for the business hopeful of Growing the
Opportunities and Threat
The challenges faced by irrigation sector in India continue to threat the
company's plans of reentering the sector.
With the quality management the company is in the process of finding
various lucrative avenues for the growth of the business in the Irrigation
Internal Control Systems:
The company has internal control system commensurate to the operations of
Financial management and financial performance:
During the year under review, there was a loss of Rs. 10.19 Lacs for the
financial year. Industrial relations and human resources management:
The company is not into core industrial activity. Further, there are no
employees in the company at present.
Statements which are based on and describe about management's expectations,
estimates, projections, objectives, intentions and assumptions are forward
looking statements. Words such as 'expects/' 'anticipates/' 'plans.''
'believes/' 'scheduled.'' 'estimates' and variations of these words and
similar expressions are intended to identify forward-looking statements,
which include but are not limited to projections of revenues, earnings,
segment performance, cash flows. Forward-looking statements are made
pursuant to the Companies Act, 1956. securities laws and all other
applicable acts, statues, rules and regulations as amended from time to
time. These statements are not guarantees of future performance and involve
certain risks and uncertainties, which are difficult to predict. Therefore,
actual future results and trends may differ materially from what was
forecasted in forward-looking statements, expressed or implied.
The Company does not undertake any obligation to update or publicity
release any revisions to forward-looking statements to reflect events,
circumstances or changes in expectations after the date of this report.
BY ORDER OF THE BOARD
Date : 31st October 2012 (V D Sarda)
Regd. Office Address
32/33, Bombay Mutual Bldg..
Dr. D.N. Road, Fort,
Mumbai - 400 001