| The Directors have pleasure in presenting the 6th Annual Report together with the Audited Statement of Accounts for the year ended 31st March, 1999.
FINANCIAL HIGHLIGHTS
The working results of the Company for the year under review are as
under :
(Rs. in Lacs)
31st March, 1999 31st March, 1998
Turnover & other income 2031.68 1694.90
Operating Profit 273.34 175.16
Less : Interest (227.48) (134.84)
Gross Profit 45.86 40.32
Less : Depreciation (96.84) (12.51)
Provision for taxation -- (2.92)
Net Profit/(Loss) (50.98) 24.89
Current year Operations
The Company has posted a turnover of Rs. 20.17 crores during 1998-99, an increase of over 20% over last year. The recessionary trends in the
global textile markets continued unabted in the year under review. Inspite of the above conditions the company was able to post higher
operating profits at 273.34 lacs against 175.16 lacs last year due to
increase in volumes from additional capacity installed and commissioned
during 1998-1999.
The cotton crop during the year under review continued to be adversely
affected and even though it is estimated to be 16.25 million bales
against 14.80 million bales in 1997-98, it is still lower than 17.65
million bales in the year 1996-97. The prices of Indian cotton in the
year under review were higher than comparable international cotton
prices.
Total exports has increased to Rs. 12.50 crores against Rs. 9.53 in 97-98 an increase of 31%. The Company is committed to focus more on
exports and expand global markets which will provide volumes and better
reasisation in time to come.
Y2K Preparedness Level
The Directors are glad to report that the areas where Y2K problems will
be faced are very limited. Full Y2K compliance is expected to be
achieved by September, 1999. An internal team has been formed to
address this problem. The expenditure to ensure Y2K compliance is not
expected to be significant,
Public Deposits
The Company has not accepted any deposit from the public during the
year under review.
Directors
Shri S. S. Kothari and Shri Arvind Kumar, Directors of the Company retire by rotation at the ensuing Annual General Meeting and being
eligible offer themselves for re-appointment.
Conservation of Energy, Technology absorption and Foreign Exchange
earnings and outgo
The information in accordance with the provisions of Section 217(i)(e)
of the Companies Act 1956 read with the Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988 is given in the Annexure to the Report and form an integral part thereof.
A. DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY :
The Company is making all round efforts for the Conservation of energy,
which will reduce consumption of energy in per unit of production.
However, no specific investment is contemplated for reduction of
Consumption of energy.
B. DISCLOSURE OF PARTICULARS WITH RESPECT TO TECHNOLOGY ABSORPTION
(See Rule 2)
a) Research and Development (R & D)
During the year under review no significant research work has been
undertaken by the Company.
Benefits Derived
Not Applicable.
b) Technology absorption, adaptation and innovation effort
The Company has installed the latest state-of-art imported Plant &
Machinery at its unit to produce a superior quality product.
Benefits
Consequent to installation of latest plant & machinery, the Company
produced good quality of cotton yarn which is well accepted in the
premium segment both in domestic as well as in international market.
c) Foreign Exchange Earnings and Outgo
(Amount in Rs.)
Current Year Previous Year
1998-99 1997-98
1. Foreign Exchange earned
Export of Cotton Yarn (FOB. Value) 84,799,576 51,278,314
2. Expenditure in foreign Currency
Capital Goods (C.I.F. Value) -- 29,881,875
Spare Parts (C.I.F. Value) 2,089,110 316,464
Travelling Expenses 250,746 401,370
Export Commission 48,019 1,660,504 |