Karnavati Alfa International Ltd. के निदेशक की रिपोर्ट

Mar 31, 2008

TO THE MEMBER OF KARNAVATI ALFA INTERNATIONAL LIMITED,

The Directors have pleasure in presenting the 16th Annual Report together with the Audited Accounts of the Company for the Financial Year ended on 31st March, 2008.

FINANCIAL RESULTS:

2007-2008. 2006-2007. (Rs. In Lacs) (Rs. In Lacs)

Sales and Other Income 652.13 1144.52

Profit/(Loss) before interest and depreciation -33.37 146.03

Less: Interest & Financial charges 27.82 30.31

Depreciation 37.47 36.32

Profit/(Loss) before Tax -98.66 79.40

Less: Provision for taxation 2.24 7.93

Profit/(Loss) after Tax -100.9 71.47

Add/Less: Profit/ Loss brought forward from last year 4.06 -67.39

Total accumulated losses Nil Nil

Balance Profit/(Loss)carried forward to Balance Sheet -96.84 4.06

DIVIDEND

The Directors are unable to recommend any Dividend for the year due to carry forward losses of previous years and non availability of enough reserves.

REVIEW OF BUSINESS OPERATIONS

During the year under review the turnover of the Company has decreased to Rs. 652.13 lacs as against Rs. 1144.52 lacs of the previous year due to the reduction in the trading activities. Your company has made loss of Rs. 100.9 lacs as compared to profit earned of Rs. 71.47 lacs of previous financial year. The Company is concentrating on operating activities.. Due to the concentration in operating activities, directors of the Company are hopeful to achieve better results in years to come.

FIXED DEPOSITS

During the year under review, the company has not accepted any deposit within the meaning of section 58A of the companies Act, 1965 and the Rules made there-under.

DIRECTORS

The Board of Directors has been properly constituted as per the Companies Act, 1956..

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the requirements under Section 217(2AA) of the Companies Act, 1956, with respect to Directors' Responsibility Statement, It is hereby confirmed:

1. That in the preparation of the annual accounts for the financial year ended 31st March, 2008, all applicable accounting standards have been followed along with proper explanation relating to material departures if any have been furnished

2. That the Directors have selected appropriate accounting polices and applied them consistently and made judgments 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 and of the profit of the company for the under review.

3. That the Directors have taken proper and sufficient care to the best of their knowledge and ability, 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. That the Directors have prepared the annual accounts for financial year ended 31st March, 2008 on a 'Going concern' basis.

AUDITORS AND AUDITORS' REPORT

M/s H. J. Parikh & Co., Chartered Accountants, Statutory Auditors of the Company, has expressed their unwillingness to be re-appointed as auditors on their retirement at forthcoming Annual General Meeting.

The Board therefore recommends the appointment of M/s SHAH PATEL SHUKLA & ASSOCIATES, Chartered Accountants as auditors of the company from the conclusion of the forthcoming Annual General Meeting until the conclusion of the next Annual General Meeting of the company on such remuneration as may be decided by M/s. SHAH PATEL SHUKLA & ASSOCIATES and Board of Directors. M/S SHAH PATEL SHUKLA & ASSOCIATES have also confirmed to the company that, if appointed as an auditor of the company, their appointment will be in accordance with the provisions of the Company.

PARTICULARS OF EMPLOYEES

There are no employees whose particulars are required to be shown in terms of provisions of Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 as amended.

CORPORATE GOVERNANCE:

A report on Corporate Governance as stipulated in amended Clause 49 of the listing Agreement with the stock exchange for the year ended 31st March, 2008 and certificate issued by the statutory auditors of the company are attached herewith and forming part of the Annual Report of the company. Management discussion and analysis report are also appended herewith and forming part of the Annual Report of the Company.

CFO CERTIFICATION:

The Managing Director and Chief Financial Officer has submitted a certificate to the Board of Directors of the Company regarding the financial statements and other matters as required under clause 49(v) of the Listing Agreement.

DEMATERIALISATION:

Your company's shares are traded in compulsory in electronic form and your company has got connectivity with both the depositories i,e National Security Depository Limited (NSDL) and Central Depository Services(India) Limited (CDSL). M/S Intime Spectrum Registry limited is the Registrar and Share transfer Agent of the company.

CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION FOREIGN EXCHANGE EARNINGS AND OUTGO:

The additional information required to be disclosed pursuant to Section 217(1)(e) of the Companies Act read with the companies (Disclosures of Particulars in the Report of Board of Directors) Rules 1988 is given in the Annexure- I forming part of this Report.

ACKNOWLEDGEMENT: Your directors would like to place on record their appreciation for the dedication and whole hearted support and commitment of all the employees across the company as well as the Bankers, its valued customers, various Government, Semi- Government and Local Authorities, suppliers and other business Associates. The Board of Directors also wishes to than the shareholders for the confidence reposed in the Management.

For and on behalf of Board of Directors

SD/-

Place : Sanand (Hemang A. Shah)

Date : 05/09/2008 Chairman & Managing Director