SHAMKEN COTSYN LIMITED
ANNUAL REPORT 2006-2007
Your Directors present the Annual Report together with audited accounts of
the Company for the period ended 31st March, 2007.
FINANCIAL RESULTS YEAR ENDED PERIOD ENDED
Sales & Other Income 35,662,851 62,095,106
Profit/ Loss After Tax (35,521,262) (69,921,973)
Loss B/F from previous year (427,900,448) (357,978,475)
Profit/Loss available for appropriation (463,421,711) (427,900,448)
In view of the accumulated losses your Board is unable to declare any
dividend for the period under review.
Mr. K.P. Saxena and Mr. H.B. Chaturvedi, Directors of the Company, retire
by rotation and being eligible, offer themselves for re-appointment. Your
Board recommends their appointments as Directors.
The observations of the auditors in their report read with the relevant
notes to accounts are self explanatory.
The Auditors of the Company, M/s Rakesh Chauhan & Associates, Chartered
Accountants, retire at the ensuing Annual General Meeting of the Company
and have given their consent for re-appointment. The Company has also
received a Certificate from them under Section 224(1B) of the Companies
The Central Government's cost Audit order specifies audit of Cost
Accounting Records for certain specified products every year. The Board of
Directors, subject to the approval of the Central Government, has appointed
M/s S. K. Mittal & Co., Cost Account, to carry out the cost audit for the
year under review at remuneration to be decided by the Board of Directors.
As required by Clause 49 of the listing agreement, the reports on
Management Discussion and Analysis, Corporate Governance as well as the
Certificate from the Company Secretary in Practice regarding compliance of
conditions of Corporate Governance, are annexed as annexure - II, III & IV
respectively and form an integral part of this report.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
Information pursuant to Section 217(1)(e) of the companies Act 1956 read
with the Companies (Disclosures of particulars in the report of Board of
Directors) Rule, 1988 is given in the Annexure-1, forming part of this
Your Company has been discharging payments to its deposit holders. It owns
liability to the tune of Rupees 16,178,832 against a deposit holder 838.
PARTICULARS OF EMPLOYEES:
Information in accordance with the provisions of section 217(2A) of the
Companies Act, 1956, read with the Companies (Particulars of Employees)
Rule, 1975 as amended, there is no employee employed by the Company
either for whole or part of the year drawing remuneration in excess of the
limits laid down under the rules mentioned above.
DIRECTOR'S RESPONSIBILITY STATEMENT:
Pursuant to Section 217 (2AA) of the Companies Act, the Directors confirm
that in preparation of Annual Accounts.
a. That in the preparation of the accounts for the Period ended on 31st
March, 2007 the applicable Accounting Standards have been generally
b. That such Accounting policies have been selected and applied
consistently and judgments and estimates that are reasonable and prudent
made so as to give a true and fair view of the state of affairs of the
Company at the Period ended 31st March 2007.
c. That proper and sufficient care has been taken for 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.
d. That the accounts for the period ended 31st March 2007 have been
prepared on a going concern basis.
Your Directors wish to convey their thankful appreciation for the constant
and enthusiastic support of the Company's Customers, Distributors,
Suppliers, Bankers and Financial Institutions, and the State and Central
Governments, without which the Company would not have been able to
accomplish whatever it has actually attained. Your Directors also take this
opportunity to express their appreciation of the earnest efforts put in by
the employees, at all levels, in achieving the corporate Objectives
For and on behalf of the Board
For Shamken Cotsyn limited
Sanjay Chaturvedi Amit chaturvedi
Place: New Delhi
Date : 30th October, 2007.
Information in accordance with the Companies (Disclosure of particulars in
the Report of Board of Directors) Rules, 1988
Statement of particulars pursuant to Companies (Disclosure of Particulars
in the report of Board of Directors') Rule, 1988.
PARTICULARS Year Ended Period Ended
(12 Months) (15 Months)
A. CONSERVATION OF ENERGY
a) Energy conservation measures taken : All round efforts are being made
b) Additional investment and proposal, : Made for energy Conservation to
if any, being implemented for reduction reduce wastage. Energy
of of consumption of energy; conservation has been made a
and this resulted in lower input of part of work culture
c) Impact of measures at (a)and (b)
above of for reduction of consumption
of energy : Power for per Mtr. Of fabric
d) Power & fuel Consumption : As Per form 'A' Attached
B. TECHNOLOGY ABSORPTION:
a) Efforts made in Technology
absorption : As Per form 'B' Attached
C. FOREIGN EXCHANGE EARNING AND OUTGO:
a) Activities relating to exports,
initiatives taken to increase exports,
development of new export markets for
product and services, and export plans; : As mentioned in Directors'
b) Total foreign exchange used and
i) Foreign Exchange used : NIL
ii) Foreign Exchange earned : NIL
Year ended Period Ended
A. POWER AND FUEL CONSUMPTION UNIT 31st March, 2007 31st March 2006
(12 Months) (15 Months)
a) Purchase unit KWH 482980 635348
Total Amount Rupees 2254562 3019429
Rate/unit Rupees 4.67 4.75
b) Own Generation
Through Diesel Gensets
Units per liter of
Diesel oil Units/Kwh 98854 117478
Cost per litre Rs./Unit 10.75 9.78
(a) Husk Fired Boiler:
Quantity Tonnes 1691 2236
Total Amount Rupees 3983981 3886479
Average Rate Rs./Tonnes 2335 1738
(b) Oil Fired Boiler:
Quantity Tonnes NIL NIL
Total Amount Rupees NIL NIL
Average Rate Rs./Tonnes NIL NIL
B. CONSUMPTION PER
UNIT OF PRODUCTION:
Unit for DG Set) Unit/meter 0.21 1.46
Cost Rs./Mtr 1.20 8.09
Boiler (Husk Fired) Tonnes/Mtr
Cost Rs./Mtr 1.42 7.54
Unit for DG Set) Units/Mtrs NIL NIL
Cost Rs./Mtrs NIL NIL
Boiler(Oil Fired) Tonnes/Mtrs NIL NIL
Cost Rs./Mtrs NIL NIL
(Form for Disclosure of Particulars with respect to absorption)
Research and Development (R&D):
1. Specific areas in which R&D : Improvement in methods of manufacturing
Carried by the Company cost effectiveness and efficiencies.
2. Benefits derived as a result : Cost reduction & improvement in
of the above R&D efficiencies
3. Future plan of action : To continues for development of
better products and improvement in
quality & efficiencies
4. Expenditure on R&D
(a) Capital : It is an on-going process and
(b) Recurring : there is no specific allocation
(c) Total : and identification of expenditure
(d) Total R&D expenditure as a : of R&D
percentage of total turnover
Technology Absorption, Adoption & Innovation:
1. Efforts, in brief, made towards The Company is regularly pursuing
technology absorption, adoption the up-gradation of technology for
innovation the development of new product
2. Benefits derived as a result of improvement of quality of products,
the above efforts e.g. Product Improvement in manufacturing process
improvement, cost reduction, resulting in cost reduction and
product wastages during the manufacturing
process and acceptability of the
product in the international market
3. In case of imported technology Nil
(imported during the last 5 years
reckoned from the beginning of the
financial year following
information may be furnished
Note: Figures have been re-arranged and re-grouped wherever required in the
Directors' Report and Management Discussion and Analysis along-with
MANAGEMENT DISCUSSION & ANALYSIS REPORT
OPERATION & OUTLOOK:
The company account forth e current year has been prepared forth e period
of 12 months i.e. from 01-04-2006 to 31-03-2007. During the period under
review your Company has clocked a turnover of Rs. 356.63 lacs. The company
has incurred a net loss of Rs.355.21 Lacs. The Company has been able to
reduce its losses significantly as net losses for the corresponding 15
months period. This depicts the overall improvement in the financials of
the Company despite the Company being in red.
We have resorted to the severe strict measures to revive the Company in
order to put it on track as early as possible.
As fine economy booming and the demands of the Company's product improving
we expect to make a significant turnaround very soon.
Your Company is negotiating with financial institutions, Banks, State
Government to support the restructuring program formulated by the company
so that the financial health of the company be put on track.
SWOT ANALYSIS FOR THE COMPANY:
Your company is in the business of Processing of grey Cloths for the
exporters. The company has low power &fuel cost, cheap labour and easy
availability of water to carry out the process.
Your Company is heavily dependent on the easy availability of raw material
& to ensure its genuine supply we remain in touch with its suppliers. We
have been able to procure these raw materials in constant touch with
Further, your company has approached Board of industrial & financial
Reconstruction for the revival of the company & expecting favourable
response in the larger interest of the company & its stakeholder.
The Indian textile market is growing considerably resulting increase in the
export of garments from India. We are looking forward to avail this
Your Company has installed proper plants to fulfill its obligations towards
INTERNAL, CONTROL SYSTEM & ADEQUACY:
Company has a well defined internal Control system that is adequate and
Commensurate with size and nature of business. Clear roles,
responsibilities and authorities, coupled with internal information
Systems, and ensure appropriate information flow to facilitate effective
Expenditures on Research and Development is not separately allocated and
identified. The constant endeavor to upgrade existing manufacturing
facilities result in the improvement in the production.
FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE DISCLAIMER:
Statements in this report describing the current industry, outlook,
opportunities etc. reflect the estimation and opinion of the company. The
same are based on certain assumptions and expectations of future events.
The actual results may substantially diverge from the same as they depend
upon the worldwide political, economic and social situation. Further,
Government regulations, tax structure, demand & supply conditions, cost of
raw materials & their availability and other related factors can also have
a bearing on the above statements.