SONU SYNTHETICS LIMITED
ANNUAL REPORT 2005-2006
Your Directors are presenting the Twenty First Annual Report for the year
ended 31st March 2006.
(Rs. in Lacs)
FINANCIAL RESULTS 2005-2006 2004-2005
Sales & other turnover 876.70 4972.99
Gross Profit Before
Depreciation & Financial charges 91.29 462.60
Less : Financial Charges (162.32) (790.85)
Depreciation (42.41) (210.60)
Profit/Loss Before Taxation (296.07) (538.85)
Add: Brought forward loss (4405.10) (3866.25)
Less : Profit of Sale of Assets 1082.66 -
Loss carried to Balance Sheet (3618.46) (4405.10)
There is no business operations for the year under review.
In view of the losses incurred during the year under review, your Directors
regret their inability to declare any dividend for the year.
Mr. Bishambharlal Kaseruwala Director retires at this Meeting and being
eligible offers himself for re-appointment.
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to the requirements Under Section 217 (2A) of the Companies Act,
1956 with respect to Director's Responsibility statement it is hereby
a. That in the preparation of the Annual Accounts for the Financial year
ended 31st March 2006, the accounting standards has been followed alongwith
proper explanation relating to material departures;
b. That the Directors had selected such accounting policies and applied
them consistently and made judgements and estimates that were 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 31st March 2006 and of the
Profit or Loss of the company for the year under review;
c. That the Directors had taken proper and sufficient care for the
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 Directors had prepared the accounts for the financial year
ended 31st March 2006 on a going concern basis, however owing to the
present scenario Directors reserves their assumption of going concern basis
for the coming years.
PARTICULARS OF EMPLOYEES
The details as required under Section 217 of the Companies Act, 1956 are
not applicable as no employees is drawing salary of Rs. 24,00,000/- per
annum or Rs. 2,00,000/- per month if employed for the part of the year.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING
The Company stopped all its manufacturing activities, hence no report is to
The company's shares are listed at Mumbai & Ahmedabad Stock Exchanges. As
per the letter dated 30th March 2004 the Equity shares of the company are
to be traded in de-mat form. The company had not signed agreements with
Central Depository Services (India) Limited and National Securities
Depository Limited for de-mat of the Equity shares. The Company had not
paid listing fees of Mumbai and Ahmedabad Stock Exchange for the current
year and previous years. The Company shall make the payment of fees as the
Cash Flow, position improves. The trading of the Equity shares of the
company are under suspension at both the stock exchanges.
As required a report of Corporate governance under clause 49 of listing
agreement to be enclosed with the Director's report.
The retiring Auditor M/s. Neeta & Company, Chartered Accountants expressed
their willingness for re-appointment. The Board recommends their
appointment as the Auditors of the Company.
The qualifications, observations and suggestions made by the Auditors in
their report are self-explanatory. In view of the extra-ordinary
circumstances developed with taking over possession of the Silvassa Unit
forcibly by ARCIL since 6th June, 2005, and further to floods in July 2005.
Board of Directors of the company is not in position to take appropriate
measures for complying with the statutory requirements accordingly. In view
of the absence of the official communication by ARCIL, since 6th June 2005
the Board of Directors are not in position to give an effective reply to
all the observations and qualifications made by the Auditors in their
reports, Annexure to the Auditors reports and Notes on accounts.
During the year, the company has not accepted deposits to meet the pressing
payment obligations. There is no unclaimed /unpaid deposits. None of the
deposits have matured for payment.
Your Directors acknowledge with gratitude the co-operation extended by
Government/semi Government authorities. Your Directors also place on record
their appreciation for sincere services rendered by Employees.
FOR AND ON BEHALF OF THE BOARD
Place : Mumbai GHANSHY AMDAS DEORA
Date : 2nd September, 2006 CHAIRMAN