Kareems Spun Silk Ltd. के निदेशक की रिपोर्ट

Mar 31, 2009

The Directors present their Eighteenth Annual Report on the business and the operations of your Company alongwith the audited Statement of Accounts for the year ended 31st March, 2009.

Financial Results :

The financial results for the year under report are as follows:

Rs. in Lakhs

31-03-2009 31-03-2008

Sales 138.14 123.29

Other Income 0.15 2.86

Profit/(Loss) before interest and 0.43 (41.77)

depreciation Less:Interest

Depreciation 52.83 52.87

ProfiV(Loss) for the year (52.40) (94.64)

Add : Previous years

Profit/(Loss) (898.80) (804.16)

Profit/(Loss) transferred to Balance Sheet (951.20) (898.80)

Your Directors report better sales performances for the year ended 31-03-2009 as compared to the previous year. However the manufacturing and other expenses have been substantial owing to the poor condition of plant and machinery, requiring substantial expenses towards repair, overhaul and maintenance. Your management hopes that the current year performance would be better.

Board of Directors :

Sri.Mohammed Faisal will be retiring by rotation at the ensuing Annual General Meeting and being eligible offers himself for re-appointment. You are requested to re-appoint him as Director of the Company.

Sri. Mohammed Wajid resigned as Director of the Company. Your Directors wish to place on record their appreciation of the valuable services rendered by Sri. Mohammed Wajid during his tenure as Director of the Company.

Directors Responsibility Statement:

The Directors hereby state that:

(i) in the preparation of the annual accounts, the applicable accounting standards had been followed and there had been no material departures;

(ii) they had selected such accounting policies and applied them consistently and made judgements 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;

(iii) they 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;

(iv) they had prepared the annual accounts on a going concern basis.

Corporate Governance :

The Company is a sick industrial undertaking and was not functioning for few years. Hence it has not been possible to form any committees of the Board, as required in terms of Clause 49 of the Listing Agreement, the Company has complied with the Corporate Governance provisions. However, the Board of Directors is committed to reviving the operations of the Company and is hopeful of a positive outcome.

Auditors :

M/s. S. Janardhan & Associates, Chartered Accountants, Bangalore, the Auditors of the Company retire at the conclusion of this Annual General Meeting and being eligible, are recommended for re- appointment.

Disclosure of particulars :

The particulars relating to conservation of Energy, Technology Absorption and Foreign Exchange earnings and out-go as required under Section 217(i)(e) of the Companies Act, 1956 and the Companies (Disclosure of particulars in the Report of Directors) Rules, 1988 are enclosed as part of the report.

Acknowledgement :

The Directors wish to place on record their appreciation for the whole hearted co-operation by the bankers, customers and suppliers.

for and on behalf of

the Board of Directors

A.K. ABDUL SAMAD

Chairman Place : Bangalore Date : 27th July, 2009