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30
Act, 1956 in respect of the subsidiary
companies.
However, the investors may seek the
copies of the Annual Reports and related
detailed information of the subsidiary
companies by writing to the Company
Secretary at the registered office of the
Company.
Directors’ Responsibility
Statement
Pursuant to Section 217(2AA) of the
Companies Act, 1956, the Directors
confirm that to the best of their
knowledge and belief
(i) In the preparation of the annual
accounts, the applicable accounting
standards were followed
(ii) Such accounting policies were
selected and applied consistently
and such judgements and estimates were
made that were reasonable and prudent,
so as to give a true and fair view of
the state of affairs of the Company as
on March 31, 2009 and of the profit of
the Company for the year ended on that
date
(iii) Proper and sufficient care was taken
to maintain 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
(iv) The attached annual accounts for the
year ended March 31, 2009 were
prepared on a going concern basis.
Auditors and Auditors’ Report
Dalal & Shah, the Auditors of the
Company, will retire at the conclusion of
the ensuing Annual General Meeting.
They have given their consent to continue
to act as the Auditors of the Company for
the current year, if reappointed.
The relevant notes forming a part of the
accounts are self-explanatory and give full
information and explanation in respect of
the observations made by the Auditors in
their Report.
With regard to para 4 (d) in the Auditors’
Report dated June 05, 2009 (for details
please refer Note number 18(3) of
Schedule 16, Notes to Accounts) the
Board’s response thereon is as follows
i. The Company fully complied with AS-
11 (which deals with foreign currency
transactions and is mandatory)
ii. The Institute of Chartered Accountants
of India (ICAI) also issued another
Standard, AS-30, which as far as the year
to March 31, 2009 is concerned was not
applicable at all whether on a
recommendatory basis or otherwise.
iii. As for the reference to the
announcement of the ICAI dated March
29, 2008, it was, in the opinion of the
Board of Directors, not relevant since it
refers to the principle of ‘prudence’
which, in turn, refers to ‘known losses’;
and given the intent and the actual
conduct in respect of the hedge
contracts, referred to by the Auditors,
there will be neither any profit nor
any loss since, as is implicit in a hedge
contract, the difference on the settlement
date will be neutralised by an equivalent
amount that will be embedded in
the export sale proceeds converted
in rupees.
Accordingly,
the
foregoing
Announcement of the ICAI [forming the
basis of Para 4 (d) in the Auditors' Report]
is not applicable.
Acknowledgement
The Board of Directors express their
sincere thanks to all the customers,
employees, lenders and suppliers for their
continuing support.
For and on behalf of the Board of Directors
Mumbai
Sunil S Lalbhai
June 05, 2009
Chairman and Managing Director