Your Directors are pleased to present the Twentieth Annual report of the Company along with the audited accounts for the year ended 31st March 2008. OPERATIONS : During the year your Company could produce 75 MT of tomato paste against 2198 MT. of last year, however production of chili puree went up to 356 MT against 279 MT of last year. Milk business of the Company continued to be adversely affected during this year also. Due to shortage of availability of milk in the market due to competition and shortage of working capital, Company decided not to operate milk plant. The plant was leased out for 4 months at lease rent of Rs. 8,00,000 per month. Processing of Ketchup on behalf of Nestle was 2558 MT against 2325 MT of last year. In addition to this, the Company processed 501 MT of own TABBY brand ketchup agianst 700 MT of las year. The production of own brand of ketchup went down due to shortage or non-availability of tomato paste, an essntial ingredient of ketchup. During the year Company also processed 1702 MT of fruit pupls agaisnt 1005 MT of last year. Due to total loss to tomato crop as a result or weather conditions and almost negligible production, and non operation of milk plant on its own, the Company ended the year with turnover of Rs. 905.24 Lacs agianst Rs. 1940.94 Lacs of last year, and there is a net loss of Rs. 253.95 Lacs agianst 20.08 Lacs of last year. Efforts are being made at all levels to add new value added products to the existing product range to increase realisable values per unit of production, and to cut costs to achieve profitability. To improve turnover and profitability the Company has developed a new product spple Juice concentrate using the existing infrastructure. Only one juice extraction press was needed to start commercial production for which order for import of a belt press from China has already been placed. The machine is expected to be received and installed soon. This will help to at. eiop new products, thus increasing turnover and profitability. The Company had arrived at a negotiated settlement with all three financial institutions, and total dues have been cleared. However Company has yet to issue equity shares as per the sanctioned scheme. IFCI Limited has decided to receive cash in place of 0% optionally convertible debentures. Due to delay in payment of listing fee trading in the shares of our Company was suspended by BSE. The Company is pursuing the matter with BSE and expects that the trading will start soon. DIRECTORS' RESPONSIBILITY STATEMENT Pursuant to requirements of section 217 of the Companies Act, 1956, your Directors confirm that: 1. In the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures. 2. They 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 Company as on March 31, 2008 and the Profit & Loss Account of the Company for the year ended on that date. 3. They 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. They have prepared the accounts on a going concern basis. DIRECTORS Sh. W.S. Nijjer, Prof. U.C, Singh and Sh. K.C. Mehra retire by rotation at the forthcoming Annual General Meeting & being eligible, offer themselves for reappointment. FIXED DEPOSITS The Company did not accept fixed deposits during the year and no deposits were overdue for payment as on 31.3.2008. PARTICULARS OF EMPLOYEES None of the employees was in receipt of remuneration in excess of the limits laid down in Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules,1975. CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING AND OUTGO. As required under The Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, the information is annexed and forms a part of this report. CORPORATE GOVERNANCE A separate report on Corporate Governance along with the Auditor's certificate on its compliance is attached and forms part of this report. AUDITORS M/S Lakhwinder Singh & Associates, Chartered Accountants, auditors of the Company hold office until the conclusion of the forthcoming Annual General Meeting & being eligible offer themselves for reappointment. You are requested to reappoint them. AUDITOR'S OBSERVATIONS ON ACCOUNTS There are delays in deduction/deposit of Provident Fund and Employees State Insurance dues with appropriate authorities and amount due could not be deposited due to financial constraints. Further during the year deduction on account of TDS was not made and no amount was deposited with the authorities. The Company is putting in all efforts to clear the over dues at the earliest. ACKNOWLEDGEMENT The Board wishes to place on record its appreciation for the continued support received from all its employees, IFCI Limited, Bankers, Government authorities and customers. Industrial relations remained cordial during the year. On behalf of the Board of directors SATBIR NIJJER Managing Director NAVDEFP NIJJER Director Place: Regd. Office, Villi Meharbanpura, PO. Jandiala Guru, Amritsar Date: 28.07.2008 |