KC Textiles Ltd. के निदेशक की रिपोर्ट

Mar 31, 2010

The Directors present the 32nd Annual Report of the Company together with Audited Statement of Accounts for the year ended 31st March, 2010.

FINANCIAL RESULTS

(Rs. In Lacs)

2009-2010 2008-2009 Rs. Rs.

Sales & Other Income 437.89 647.45

Profit before Financial Exp.

& Depreciation (3.17) 198.20

Financial Expenses 6.84 26.31

Depreciation 0.71 0.74

Profit/(Loss) for the year (10.72) 171.15

before exceptional items

Exceptional Items - 7.85

Profit / (Loss) before tax (10.72) 163.30

Provision for Fringe Benefit tax - 0.08

Fringe Benefit tax of earlier year 0.00 0.02

Profit / (Loss) after tax (10.72) 163.24

Loss brought forward

from the earlier year (543.04) (706.29)

Balance carried forward (553.77) (543.05)

OPERATIONS

The company continued its trading activities in textile. The sales and other income during the year decreased to Rs. 437.89 lacs as compared to Rs. 647.45 lacs in the previous year. The net loss is Rs. 10.72 lacs during the year after providing for financial expenses and depreciation.

The Company has been declared sick by BIFR vide its order No. 703/02 & 388 / 3 Bench II Dated 11.12.2006 and continues to be sick at present.

FUTURE PROSPECTS

The Company is concentrating on increasing the trading activities in textiles in domestic market and are exploring other product and other markets . The working of the Company is expected to improve in the coming years.

DIVIDEND

Directors do not recommend any Dividend for distribution to shareholders.

DIRECTORS.

Shri S. K. Goel and Shri Rakesh Sharma, Directors of the Company retire by rotation and being eligible offerthemselves for reappointment.

AUDITORS

M/s. Jagdish Sapra & Co. Chartered Accountants, the Statutory Auditors of the Company retire at this Annual General Meeting and being eligible, offer themselves for reappointment. The Company has received a certificate from them to the effect that their re-appointment, if made, would be in accordance with Section 224 (1B) of the Companies Act, 1956. The Board recommends their re- appointment.

AUDITORSREPORT

The Auditors Report read together with the Notes to Account is self-explanatory and do not call for any further explanation u/s 217 (3) of the Companies Act, 1956.

FIXED DEPOSITS

The Company has not accepted any deposit from the public under section 58Aof the Companies Act, 1956.

CORPORATE GOVERNANCE

Pursuant to clause 49 of the Listing Agreements with the Stock Exchanges, a Management Discussion and Analysis, Corporate Governance Report and Auditors certificate regarding compliance of conditions of Corporate Governance are made a part of the Annual Report.

DIRECTORS RESPONSIBILITY STATEMENT

Your Directors confirm the following Directors Responsibility Statement pursuant to provisions of section 217(2AA) of the Companies Act, 1956.

(I) In the preparation of the Annual Accounts for the year ended 31st March, 2010, the applicable accounting standards have been followed.

(ii) Appropriate accounting policies have been selected and applied consistently and made judgements and estimates that are reasona- ble and prudent so as to give a true and fair view of the state of affairs of the company as at 31s March, 2010 and of the loss of the Company for that period;

(iii) Proper and sufficient care for 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 have been taken.

(iv) The annual accounts have been prepared on a "going concern basis";

PARTICULARS OF EMPLOYEES

None of the employees, employed throughout the financial year or part thereof, was in receipt of remuneration as prescribed pursuant to Section 217(2A) of Companies Act, 1956 read with companies (Particulars of Employees) Rules, 1975, as such no statement is attached.

CONSERVATION OF ENERGY

The manufacturing operations of the company remained completely suspended during the year under review and since there was no energy consumption, therefore, the information pursuant to Section 217(1) (e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988- and forming part of Directors Report for the year ended 31st March, 2010 is not Annexed.

ACKNOWLEDGEMENT

The Directors acknowledge and place on record their appreciation of the valuable assistance and support extended by banks. The Directors also record their appreciation of the services rendered by the staff of the Company.

On behalf of the Board

Delhi Satish Kumar Goel

Date : 14th Aug, 2010 Chairman