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Skylead Chemicals Ltd.

BSE: 531742 Sector: Agri and agri inputs
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Skylead Chemicals Ltd
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Skylead Chemicals Ltd. (SKYLEADCHEMICAL) - Director Report

Company director report

SKYLEAD CHEMICALS LIMITED ANNUAL REPORT 2003-2004 DIRECTOR'S REPORT To, The Members, Your Directors herewith submit the 17th Annual Report of your Company for the financial year ended 30th September, 2004. 1. SUMMARY OF FINANCIAL RESULTS: (Rs. in lac) 2003-2004 2002-2003 A. PROFIT/(LOSS) BEFORE DEPRECIATION (282.25) (188.80) B. DEPRECIATION 73.23 70.77 C. PROFIT BEFORE TAX (355.48) (259.57) D. PROVISION FOR TAX NIL NIL E. PROFIT AFTER TAX (355.48) (259.57) F. APPROPRIATIONS HAVE BEEN MADE AS UNDER TRANSFER TO GENERAL NIL NIL RESERVE PROPOSED DIVIDEND NIL NIL BALANCE B/F (583.16) (323.59) G. NET PROFIT CARRIED FORWARD (938.64) (583.16) 2. DIVIDEND : No dividend is declared by the Company for the financial year 2003-2004. 3. OPERATIONS : The Company, during the year under review, has proposed far modernisation in the plant keeping parity with GMP like plant to enter the market for pharmaceutical base industries both for domestic and international. 4. FUTURE PROSPECTS : The demand of DMS Cationic Salt, during the year under review, has gone down day by day in the domestic market of polyester fiber manufacturers. However, polyester resin used as sizing material in Polyester fabric manufacturing has been developed and commercially introduced by Skylead Company in domestic market, as a prime product DMS salt is one of the critical input in it. The company's advantageous position in marketing it at competitive rates is expected to give a fair share of growing demand. 5. DIRECTORS : Shri. Vallabhbhai J. Savani retires by rotation and being eligible offer himself for re-appointment. You are requested to re-appoint him. 6. FIXED DEPOSITS : The Company has not accepted Fixed Deposits from Public as envisaged under Section 58A and 58B of the Companies Act, 1956, read with the Companies (Acceptance of Deposits Rules, 1975) 7. AUDITORS : The present Auditors M/s. S. Mandawat & Co., Chartered Accountants, Ahmedabad, are retiring at the conclusion of Seventeenth Annual General Meeting. You are requested to appoint them as they are eligible for appointment. 8. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO. : Particulars regarding the conservation of energy, technological absorption and foreign exchange earning and out go as envisaged by Sec. 217 (1) (e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the report of the Board of Directors Rules 1988) are Annexed as Annexure-I. 9. PARTICULARS OF EMPLOYEES : The particulars as envisaged by Section 217 (2-A) read with the Companies (particulars of Employees), Rules 1975 need not be given as no employee is covered there under. Your Directors would like to place on record their appreciation of the contribution made by the employees at all levels. Employees continue to remain our major asset, in our continuing endeavors in the pursuit for excellence. 10. DIRECTORS RESPONSIBILITY : In terms of Section 217 (2AA) of the Companies Act, 1956, the Directors would like to state : * That in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures; * That the directors had selected such accounting policies and applied them consistently and made judgment 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 and of the profit or loss of the company for that period; * That the directors had taken proper and sufficient care for the maintenance of adequate accounting record in accordance with the provision of the Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities; * That the directors had prepared the annual accounts on a going concern basis. 11. CORPORATE GOVERNANCE REPORT : Corporate Governance refers to a professional system by which organizations are directed and controlled. It is aimed at compliance of local statutes, which adds value system to the organization. Corporate Governance also refers to process, which should safeguard and add value in the long-term for the interest of its various 'Partners' such as shareholders, creditors, customers and employees. The culmination of good Corporate Governance policy is : * Transparency and professionalism in all activities of the Company. * Implementation of procedures and policies prescribed by the Company to ensure * high ethical standard in all its business activities. * Responsive management which meets the needs of its 'Partners'. The Company has initiated the process of corporate governance in compliance with clause 49 of the Listing Agreement with the Stock Exchanges. A sincere attempt has been made to commence implementation of Corporate Governance Code and in this regard, submit a report on the matters mentioned in the said clauses and practices followed by the Company. 12. ACKNOWLEDGMENT : The Board of Directors are pleased to place on record their sense of gratitude for the continued financial support by banks and other associates. By Order of the Board SKYLEAD CHEMICALS LIMITED LOKENDRASINH C. RAOL Chairman Place: Bhavnagar Date : 25/02/2005