The Directors have the pleasure in presenting the Annual Report and
the Audited Accounts of the Company for the year ending 31 March, 2010.
Review of operations
The Company is a Sick Company within the meaning of Sick Industrial
Companies (Special Provisions) Act, 1985. Moreover, the case of the
Company is pending with Debt Recovery Tribunal of Chandigarh and Delhi.
The Factories has been closed for the last eleven years. During the
financial year company is planning to start production and necessary
plan in this regard is under way.
Board of Directors
Shri Raj Kumar Arora, Director retire by rotation and being eligible
offered himself for re-appointment, the Board of Director recommended
the appointment of Sh. Raj Kumar Arora as director of the Company.
Further, during the year under review, in accordance with the
provisions of Article of Article of Association of the company, Shri
Jimson Kurian, Shri Vikram Yadav and Shri Som Prakash Baheti were
appointed as Additional Director w.e.f 1st October 2009. The additional
directors hold office till the date of ensuing Annual General Meeting.
Notices under section 257 of the Companies Act 1956 had been received
by the company from the members proposing the appointment of Shri
Jimson Kurian, Shri Vikram Yadav and Shri Som Prakash Baheti as
Directors of the Company. Therefore the Board recommended for their
appointment as Non Executive, Independent Directors of the company at
the forthcoming Annual General Meeting.
Dividend
In view of the current financial status and accumulated losses of the
Company the Board of directors are not in a position to recommended any
dividend for the financial year under review.
Directors Responsibility Statement
As required by sub-section (2AA) of section 217 of the Companies Act,
1956, your Directors state that:
i. in the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating to
material departures;
ii. the Directors 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 at the end of the financial year and of the profit or
loss of the Company for that period;
iii. the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provision of the Companies Act, 1956 for safeguarding the assets of the
Company and for preventing and detecting fraud and other
irregularities;
iv. the Directors have prepared the annual accounts on a going concern
basis.
Auditors and Auditors Report
In terms of amendment made by SEBI in clause 41 of the Listing
Agreement vide its circular no. CIR/ CFD/ DIL/1/2010; every listed
company is required to appoint an auditor who had subjected himself to
the peer review process of Institute of Chartered Accountants of India
(ICAI) and holds a valid certificate issued by the Peer Review Board of
the ICAI.
M/s L.N. Malik & Company, Chartered Accountants the retiring statutory
auditor of the Company, offer themselves for reappointment. The Company
has received certificate from them that they hold peer review
certificate from Peer Review Board of the Institute of Chartered
Accountants of India & their appointment, if made at the forthcoming
Annual General Meeting, would be within the ceiling limits prescribed
under section 224(1-B) of the Companies Act, 1956 and they are not
disqualified to act as Auditors of the Company for the year 2010-2011.
The Board perceives that the points of auditors report are self
explanatory and do not require any further explanation.
Fixed Deposit
During the year under review ,your Company had not invited any deposits
from the public under Section 58A of the Companies Act, 1956.
Corporate Governance
A Report on Corporate Governance including Certificate from M/s P.S
Soni & Company, Company Secretaries on compliance with conditions of
Corporate Governance under Clause 49 of the Listing Agreement is
annexed with this Report.
Conservation of Energy, Technology Absorption, Foreign Exchange
Earnings and outgo
Since the Company has not carried out any production during the year so
the particulars as prescribed under sub-section (l)(e) of Section 217
of the Companies Act, 1956 read
with the Companies (Disclosure of Particulars in the Report of the
Board of Directors) Rules, 1988 are not applicable on the Company.
Information under Section 217(2A) of the Companies Act,1956 read with
Companies (Particulars of Employees) Rules ,1975
No employee received salary exceeding the amount mentioned in the above
Rules, therefore Information required under Section 217(2A) of the
Companies Act, 1956 read with the Companies (Particulars of Employees)
Rules, 1975 are not applicable on the Company.
ACKNOWELDGEMENT .
Your Directors would like to record their appreciation for the services
rendered by the members of the staff at all levels. We acknowledge the
support provided to us by Bankers, Central and State Government
authorities, Shareholders, Advisors, Financial Partners, and Clients
for their continued support and confidence expressed in the Company.
for and on Behalf of the Board of Directors
K.J. INTERNATIONAL LIMITED
Raj Kumar Arora
(Director)
Date : 25.08.2010
Place: Amritsar
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