| The Board of Directors has pleasure in presenting the 11th Annual
Reports alongwith the Audited Final Accounts of your Company for the
year ended 31st March 1996
WORKING RESULTS
The financial results of your Company's working are as follows:
As on 31st As on 31st
March, 1996 March, 1995
(Rs. in Lacs) (Rs. in Lacs)
Sales 1.09 NIL
Profit/Loss before Depreciation (-)28.21 (-)41.15
Depreciation NIL NIL
Net Profit/Loss (-)28.21 (-)41.15
OPERATIONS
During the year under report, the Electronic industry continued to be
affected by adverse trade condition causing unprecedented crises. The
financial year under review was characterised by recessionary
conditions in the Company. There has been no production during the
period under review
DIVIDEND
In view of the losses of Company the Directors of your company do not
recommend any dividend for the year ended 31st March, 1996
PRODUCTION AND MARKETING
There has been no production in the Company during the period under
review.
FIXED DEPOSITS
The Company has not invited/accepted any fixed deposits during the
period under review.
STATUTORY STATEMENTS
As per the requirements of Section 217(e) of the Companies Act, 1956
read with Companies (Disclosure of particulars in the Report of board
of Directors) Rules 1988, the information regarding conservation,
technology absorption, Foreign Exchange Earnings and outgo are given
in the Annexure to the Report, None of the employees falls within the
purview of the provisions of Section 217(2A) of the Companies Act,
1956 as amended and read with Company's (Particulars of employees)
Rules 1975.
ENVIRONMENTAL PROTECTION AND SAFETY
The Company takes all the possible steps to ensure and preserve the
environment conditions in its natural state. Further frequent checks
are conducted to ensure the health and safety of the employees of the
Company.
DIRECTORS
Mr. Vimal Nanda, Director of the Company is retiring by rotation and
is eligible for re-election.
AUDITORS
M/s. M.K. Malhotra & Co. Auditors of the Company retire at the ensuing
general meeting and are eligible for re-appointment. The Company has
obtained from them a certificate under Section 244(1) of the Company
Act, 1956 to the effect that re-appointment if made will be in
accordance with the limits specified under Section 224(1B) of the
Companies Act, 1956.
ACKNOWLEDGMENTS
The Directors place on record their appreciations of the co-operation
and dedication by the entire work force at all levels. The Directors
are also thankful to the concerned authorities, banks and other
associations for their continued support and cooperation.
ANNEXURE TO HE DIRECTOR'S REPORT
Statement containing particulars pursuant to Companies (Disclosure of
particulars in the Report of Board of Director) Rule, 1988 and
forming part of Director Report.
A. ENERGY CONSERVATION
Periodic checks were carried to save energy by using more efficient
lighting fixures and using natural light as far as possible.
B. TECHNOLOGY ABSORPTION RESEARCH & DEVELOPMENT
1. Specific are as in which R&D Carried out by the Company.
2. Benefits derived as a result of above R&D.
Expenditure on R&D
a) Capital NIL
b) Recurring NIL
c) Total NIL
d) Total R&D Expenditure NIL
(As a % of total turnover)
Foreign Exchange inflow
Foreign exchange outflow
(Raw Material)
We have audited Balance Sheet of RUCHIKA INDUSTRIES LTD., as at 31st
March, 1996 and also the Profit & Loss Accounts of the Company for
the year ended on that date annexed therein and report as under:
a) We have obtained all the information and explanation which to the
best of our knowledge and belief were necessary for the carrying of
the audit.
b) In our opinion, proper books of accounts as required by law, have
been kept by the Company so far as appears from our examination of
such books.
c) The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the books of accounts.
d) In our opinion and to the best of our information and according to
the explanation given to us, the accounts read together with notes
thereon, given information required by the Companies Act, 1956 in the
manner so required and give a true & fair view
In the case of the Balance Sheet of the statement of affairs of the
Company as at 31st March, 1996 and in the case of Profit & Loss
Account of the Company for the year ended on that date.
AS required by the manufacturing and other Companies (Auditors
Report) Order, 1988 issued by the Companies Law Board in terms of
Section 227(4A) of the Company Act, 1956 and on the basis of such
checks as we considered appropriate, we further report that:
1. We are informed that the fixed assets have been physically
verified at the year end by the management and discrepancies could
not be as certained as the relevant records showing full particulars
in respect of quantitative details and situation of fixed assets were
with the authorities for verification.
2. None of the fixed assets have been revalued during the year.
3. Physical verification has been conducted at the year end in
respect of finished goods, stores, parts and raw materials. In our
opinion frequency of verification should be at regular intervals. The
discrepancies, if any, noticed on such verification stand adjusted in
stocks.
4. The procedure of physical stock verification followed by Management
are adequate in relation to size of the Company and the nature of its
business.
5. The valuation of stock conducted by management appear to be fair
and proper and in accordance with normally accepted accounting
principles and is on the same basis as in the previous year.
6. The Company has not taken any loans secured of unsecured from
companies, firms or other parties as listed in the Register
maintained under Section 301 of the Companies Act, 1956 and/or firm
companies under the Section 370 (IB) of the Companies Act, 1956.
7. The Company has not granted any loans, secured or unsecured to
companies firms or other parties Act, 1956 and/or to companies under
the same management within the meaning of Section 370 (IB) of the
Companies Act, 1956
8. In respect of interest free loans to employees and other loan
advances in the nature of loans given by the Company the parties are
generally repaying the principles amount and interest, however
applicable as stipulated.
9. In our opinion and according to the information and explanation
given to us, there are adequates internal control, procedure,
commensurate with the size of the company and the nature of its
business with regard to purchase of stores, raw materials including
components, plant & machinery equipment and other asset and with
regard to sale of goods.
10. No sales & purchases of material and services made in pursuance
of contracts or arrangement entered in the register maintained
u/s. 301 of the Companies Act, 1956.
11. As explained to us the company has a regular procedure for
determination of unserviceable or damaged stores, raw materials and
finished goods. Provision has been made in the accounts for the loss
as and when arising on items so determined.
12. The Company has not accepted fixed deposit from public.
13. In our opinion reasonable record have been maintained by Company
for the sale and disposal of realisable scraps. There is no by
product.
14. The Company has internal audit system which is required to be
strengthened to make it commensurate with the size and nature of its
business.
15. We are informed that the Central Government has not prescribed
the maintenance of cost records u/s 209(1) (d) of the Companies Act,
1956 for any of the product of the Company.
16. As explained to us, the provisions of provident fund Act are not
applicable to the Company.
17. According to the explanation and information given to us, no
undisputed amount payable in respect of Income Tax, Wealth Tax, Sales
Tax, Customs Duty and Excise Duty were outstanding as at 31st March,
1996 for a period of more than six months from the date they become
payable.
18. According to the explanation and information given to us during
the course of our examination of books of accounts carried out in
accordance with the generally accepted auditing practices, we have
not come across any personal expenses other than expenses under
contractual obligation with the Companies employees and/or generally
accepted business practices which have been charged to revenue
account.
19. The Company is a sick industrial Company within the meaning of
Clause (0) of Sub-Section (3) of Section 3 of Sick Industrial
Companies (Special Provisions) Act, 1985.
20. The Company has a reasonable system of recording receipt issues
and consumption of material and stores commensurate with the size and
nature of its business. in the opinion of the management allocation
of layout is possible only on day to day basis which is being done.
21. In our opinion the Company has satisfactory system of authorities
at proper levels on the issue of stores and internal control
procedure involving proper allocation of store and labour in the
manner stated in item 20 above.
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