Asian Bearings Ltd. के निदेशक की रिपोर्ट

Jun 30, 2009

The Directors have pleasure in presenting the Thirty Fourth Annual Report together with the Audited Accounts of the Company for the year ended 30th June 2009.

Financial Results (Amount Rs.)

2008-09 2007-08

Sales and Other Income 1,055,589 3,259,321

Profit/(Loss) before interest & Depreciation (2,222,242) (1966 939)

Interest 1,752,100 2,408,665

Depreciation

Profit/(Loss) before Tax (3,974,342) (4,375,604)

Profit/(Loss) after Tax (3,974,342) (4,375 604)

Loss brought forward from previous year (632,641,726) (628,266,122)

Loss carried to Balance Sheet (636,616,068) (632,641,726)

PERFORMANCE

The performance during the year remained stagnant on account of the ongoing lockout at its Plant since January 2006. Negotiations are going on with the Financial Institutions and Banks and also the Unions to resolve the issues after which the Plant can be reopened.

Moreover the Indian Car Industry is fairly new and there is lot of scope for growth.

Human Resources and Industrial Relations

The negotiations with the Unions for Man power reduction and lifting of lockout is still continuing and is yet to be resolved.

Proposal for Revival

The company has identified a strategic Investor who is interested in the revival of the company.

In order to draw up the revival package, two major issues will have to be resolved. The first and foremost is settlement of dues of the Financial Institutions, with whom the company along with the investor is in dialogue to arrive at a settlement through an OTS. The second is to reduce manpower.

As the quantum of settlement of both the Financial Institutions/Banks as well as the Employees are yet to be crystallized, the Company is yet to submit a Rehabilitation Package to BIFR.

Based on the assumption the accounts are prepared on the "Going Concern" basis.

DIRECTORS

In terms of Section 256 of the Companies Act, 1956, Mr. M.Venkateswara Rao retires by rotation and being eligible offer himself for re-appointment.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the requirement under section 217(2AA) of the Companies Act, 1956 with respect to Director Responsibility Statement, the Directors confirm that:

1) In preparation of the accounts for the year, the applicable Accounting Standards have been followed along with proper explanation relating to material departures.

2) 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 at the end of the year and of the loss of the company for that year.

3) The Directors have 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.

4) The Directors have prepared the accounts for the year on a going concern basis.

CORPORATE GOVERNANCE

Your directors are happy to report that your company is fully compliant with the SEBI Guidelines on Corporate Governance as incorporated in Clause 49 of the Listing Agreement with the Stock Exchanges. A detailed report on this subject forms part of this report.

The Statutory Auditors of the Company have examined the company's compliance and have certified the same as required under the SEBI guidelines. Such certificate is reproduced and forms part of this report.

AUDITORS

M/s. Itta Parthasarathy & Co. Chartered Accountants, Chennai retire at the conclusion of the ensuing Annual General Meeting and are eligible for re-appointment.

The Company was not able to remit PF and ESI in time due to acute financial condition. Steps are being taken to remit the PF and ESI at the earliest.

The Company is taking efforts to raise funds for settling the dues to the Institutions and Banks.

PARTICULARS OF EMPLOYEES

None of the employees are covered under Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules 1975.

CONSEREVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO.

As required under Section 217(l)(e) of the Companies Act, 1956, read with Companies (Disclosure of particulars in the report of Board of Directors) Rules, 1988, a statement containing the required particulars are given in Annexure 'A' which is attached hereto and forms part of the Directors' Report.

ACKNOWLEDGEMENT

The Board of Directors thanks Institutions viz., Industrial Development Bank of India, The Industrial Finance Corporation of India Ltd, Industrial Investment Bank of India, State Industries Promotion Corporation of Tamil Nadu Ltd and consortium of banks viz., Indian Bank, Kotak Mahendra Bank Ltd, Canara Bank, ICICI Bank Ltd Standard Chartered Bank, Indian Overseas Bank and our Joint Venture partner M/s.Tamilnadu Industrial Development Corporation Ltd for the valuable Guidance and support extended to the Company, and last but not the least the employees of the company for their co-operation and efforts during this critical period.

On behalf of the Board of Directors

M.VENKATESWARA RAO PLMUTHU Place: Chennai Director Managing Director.

Date:. 18.09.2009

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Jun 30, 2008

The Directors have pleasure in presenting the Thirty Third Annual Report together with the Audited Accounts of the Company for the year ended 30th June 2008.

Financial Results (Rs. In lakhs) 2007-08 2006-07

Sales and Other income 32.59 113.66

Profit/( Loss) before interest & Depreciation (19.67) (59.99)

Interest 24.09 0.76 Depreciation

Profit/(Loss) before Tax (43.76) (60.75)

Profit/(Loss) after Tax (43.76) (60.75)

Loss brought forward from previous year (6282.66) (6221.91)

Loss carried to Balance Sheet (6326.42) (6282.66)

PERFORMANCE

The performance during the period was stagnant as the Plant which is under lockout since January 2006 is yet to reopen.

Hence the figures pertaining to the sales have been basically from trading activities.

Moreover the Indian Car Industry is fairly new and there is lot of scope for growth.

Human Resources and Industrial Relations

The issue relating to manpower reduction is yet to be resolved as the Company is in continuous dialogue with the workers union.

Proposal for Revival

As regards the Company's appeal pending with the AAIFR, the AAIFR has set aside the winding up order of the BIFR and has advised BIFR to reexamine the viability of the Company in the light of the new product which has good potential.

The company has identified a strategic Investor who is interested in the revival of the company.

In order to draw up the revival package, two major issues will have to be resolved. The first and foremost is settlement of dues of the Financial Institutions, with whom the company along with the investor is in dialogue to arrive at a settlement through an OTS. The second is to reduce manpower.

The Company is in dialogue with the Workers for a suitable VRS scheme. No sooner the Company crystallizes the quantum of settlement for both these issues, the Company would be in a position to submit a Rehabilitation Proposal to BIFR.

Based on the assumption the accounts are prepared on the "Going Concern" basis.

DIRECTORS

In terms of Section 256 of the Companies Act, 1956, Mr.. Mr.A.K.Azhahappan retire by rotation and being eligible offer himself for re-appointment.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the requirement under section 217{2AA) of the Companies Act, 1956 with respect to Director

Responsibility Statement, the Directors confirm that:

1) In preparation of the accounts for the year, the applicable Accounting Standards have been followed along with proper explanation relating to material departures.

2) 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 at the end of the year and of the loss of the company for that year.

3) The Directors have 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.

4) The Directors have prepared the accounts for the year on a going concern basis.

CORPORATE GOVERNANCE

Your directors are happy to report that your company is fully compliant with the SEBI Guidelines on Corporate Governance as incorporated in Clause 49 of the Listing Agreement with the Stock Exchanges. A detailed report on this subject forms part of this report.

The Statutory Auditors of the Company have examined the company's compliance and have certified the same as required under the SEBI guidelines. Such certificate is reproduced and forms part of this report.

AUDITORS

M/s. Itta Parthasarathy & Co. Chartered Accountants, Chennai retire at the conclusion of the ensuing Annual General Meeting and are eligible for re-appointment.

The Company was not able to remit PF and ESI in time due to acute financial condition. Steps are being taken to remit the PF and ESI at the earliest.

The Company is taking efforts to raise funds for setting the dues to the Institutions.

PARTICULARS OF EMPLOYEES

None of the employees are covered under Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules 1975.

CONSEREVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO.

As required under Section 217(1)(e) of the Companies Act, 1956, read with Companies (Disclosure of particulars in the report of Board of Directors) Rules, 1988, a statement containing the required particulars are given in Annexure "A' which is attached hereto and forms part of the Directors" Report.

ACKNOWLEDGEMENT

The Board of Directors thanks Institutions viz., industrial Development Bank of India, The Industrial Finance Corporation of India Ltd, Industrial Investment Bank of India, State Industries Promotion Corporation of Tamil Nadu Ltd and consortium of banks viz., Indian Bank, Kotak Mahendra Bank Ltd, Canara Bank, ICICl Bank Ltd Standard Chartered Bank, Indian Overseas Bank and our Joint Venture partner M/s.Tamilnadu Industrial Development Corporation Ltd for the valuable Guidance and support extended to the Company, and last but not the least the employees of the company for their co-operation and efforts during this critical period.

On behalf of the Board of Directors

M.VENKATESWARA RAO PL MUTHU Director Managing Director.

Place: Chennai

Date: 21.10.2008.