| Your Directors are pleased to present the Twelth Annual Report and
Audited Statement of Accounts for the year ended 31st March 2002.
FINANCIAL HIGHLIGHTS FOR YEAR 2001-2002 ARE:
(Rs. in Lacs)
2001-2002 2000-2001
Income 1480.10 1633.26
Operating & General expenses 1364.98 1531.22
Operating Profit 115.12 102.04
Financial Expenses 123.48 120.48
(8.36) (18.44)
Depreciation 98.07 97.52
Profit/(loss) Before Tax (106.43) (115.96)
Provision for Tax Nil Nil
Profit/(loss) After Tax (106.43) (115.15)
OPERATIONS AND OUTLOOK FOR THE CURRENT YEAR
Sales during the year under consideration reduced slightly from Rs.
1549 lacs to Rs.13.55 lacs. This is due to lower realisation in the
sales value and also in quantity terms sales went done by 6% approx.
However, due to saving in the operational expenses to the tune of 14%,
cash losses could be reduced substantially, which shows positive sign
of improvement in working of the company.
The financial expenses of the company were practically the same.
Ultimately with the benefit of reduction in operational expenses cash
loss before depreciation comes down to Rs.8.36 lacs vis-a-vis Rs.18.44
lacs last year. We are very confident that in the year in question we
will be out of cash losses. The reason for the same is that the company
has paid in full the term loan of Rs.168 lacs and Deferred Payment
Guarantee of GBP 1002104.67 which was given by the Industrial
Investment Bank of India on behalf of the company. Both have been fully
paid and all liabilities discharged due to this the financial expenses
of the company would come down.
Since the international market for synthetic yam was not so good, the
company could achieve an export sale of Rs.113.63 lacs (Previous Year
Rs.248.30 lacs). But in the current year the market has started looking
up and in the first quarter the company has made an export sale of
Rs.45.75 lacs (f.o.b.) and have orders worth Rs.40.0 lacs in hand for
supply in the next quarter. So, It is the positive sign of increment of
export sales.
As informed earlier about the reschedulement of loan taken by the
company from Industrial Development Bank of India. Out of Rs.130 lacs,
they have disbursed a sum of Rs.105 lacs towards subscription of
debentures on private placement basis. The balance would be disbursed
by them during the current financial year.
DIVIDEND
Directors have not recommended any dividend for the financial year
2001-2002 in view of loss of about Rs. 106 lacs, which the company has
sustained during the year.
DEMATER1ALISATION OF COMPANYS SECURITIES
The Shares of the company are under the compulsory demat w.e.f.
27/10/2000. The company has successfully dematerialised about 63% of
the total shares of the company.
DIRECTORS
In accordance with the provisions of the Companies Act, 1956 and
Articles of Association of the Company Mr. Chandra Kumar Sarawgi,
Director retires by rotation at the 12th Annual General Meeting of the
company and is eligible to re-appointed at the same meeting. During the
year Shri Deepak Diwan retired at the 11th Annual Genral Meting of the
company and Shri Thampy Mathews, nominee of the Industrial Investment
Bank of India ceased to hold the directorship in the company consequent
upon the withdrawl of his name by the Industrial Investment of India.
AUDITORS
M/s S. Bhandari& Co., Chartered Accountants retire at the conclusion of
this Annual General Meeting as Statutory Auditors and being eligible
for re-appointment, offer themselves for re-appointment.
AUDITORS OBSERVATIONS
The company has not provided for the Deferred Tax Liability (Net)
amounting to Rs 16.83 lacs as on 31.3.2002 due to insufficient reserves
and losses.
DIRECTORS RESPONSIBILITY STATEMENT
The Board of Directors states:
1) That In the preparation of annual accounts, the applicable
accounting standards had been followed alongwith proper explanation
relating to material departures, if any.
2) that the Directors had selected such accounting policies and applied
them consistently and made judgements and estimates that are reasonable
and prudent so as to give a true a fair view of the state of affairs of
the company at the end of the financial year and of the loss of the
compnay for that period.
3) that the Directors had taken proper and sufficient care for
themaintenance of adequate accounting records in accordance with the
provisions of this Act for safeguarding the assets of the company and
for preventing and detecting fraud and other irregularities.
4) that the Directors had prepared the annual accounts on a going
concern basis.
FIXED DEPOSIT
During the year under consideration, the company has not accepted any
deposits from the Public.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
Information in accordance with Section 217 (1) (e) of the Companies
Act, 1956 read with Companies (Disclosure of Particulars in the Report
of Board of Directors) Rules, 1988 is given in the Annexure forming
part of this report.
PARTICULARS OF EMPLOYEES
The details pertaining to employee particulars required u/s 217 (2A) of
the Companies Act, 1956 read with Companies (Particulars of employees)
Rules, 1975 is not applicable to your company as no employee of the
company is covered under the same.
INDUSTRIAL RELATIONS
The Industrial relations remained extremely cordial during the year.
ACKNOWLEDGEMENTS
The Directors express their gratitude for the guidance and continued
co-opertion extended by Banks, Financial Institutions and Govemement
authorities. The Directors also convey their deep appreciation of the
dedication shown by all the employees and share holders. The Directors
also look forward to their continued support and encouragement for a
brighter tomorrow.
For and on behalf of the Board
K.G.Bajoria S.G.Bajoria
Managing Director Director
Place: BhIwadi
Dated: 25th June, 2002.
Report on conservation of energy technology absorption and foreign
exchange earnings and outgo in the manner prescribed as per Companies
(Disclosure of Particulars in the Report of the Board of Directors)
Rules 1988, read with provision of section 217 (1)(e) of the Companies
Act, 1956.
A. CONSERVATION OF ENERGY
a) Energy Conservation measures taken:
The Company has installed latest plant and machineries which are energy
efficient. The same policy has been followed by The company for
expansion project purposes.
b) Additional investments and proposal,if any,being Implemented for
reduction of consumption of energy.
No further specific investment is proposed in immediate future.
c) Impact of the measures at (a) &(b) above for reduction of energy,
consumption and consequent Impact on the cost of production of goods
The consumption of electricity per Kg of yarn produced has reduced
marginally from Rs. 2.54 (Last year) to Rs. 2.51 (This year).
d) Total energy consumption and energy consumption per unit of
production as per Form A below.
FORM A
(Form for disclosure of particulars with respect to conservation of
Energy)
A). POWER AND FUEL CONSUMPTION FOR THE YEAR FOR THE YEAR
ENDED 31.3.2002 ENDED 31.3.2001
1. ELECTRICITY
I) Purchase units 1715223 1230003
Total amount 7605479 5464799
Rate/Unit 4.43 4.44
II) Own Generation
a) through Diesel Generation unit 3029044 3391558
Total amount 12138397 13382150
Units per litre of Diesel Oil 3.63 3.58
b) through Steam Turbine
Generator units NIL NIL
Total amount NIL NIL
Units per litre of fuel/Gas NIL NIL
2. Coal (Steam Coal for Boiler) N.A. N.A.
3. Furnace Oil N.A. N.A.
4. Other/Internal Generation N.A. N.A.
B). CONSUMPTION PER WIT PRODUCTION (IN KGS.)product: Synthetic Yarn
Electricity Units 2.51 2.54
Furnace Oil NIL NIL
Coal NIL NIL
Other NIL NIL
B.TECHNOLOGY ABSORPTION
(e) Efforts made in technology absorbtion as per Form B below:
FORM B
(Disclosure of particulars with respect to technology absorption)
A. RESEARCH AND DEVELOPMENT (R & D).
1) Specific Area in which Company carried out the R & D: Nil
2) Benefits derived as a result of the above R & D: Nil
3) Future plan of action: Nil
4) Expenditure on R & D
Capital Nil
Recurring Nil
Total Nil
Total R & D as percentage of total sales Nil
The quality control equipments which the company have installed are
fully computerised and latest as available for the synthetic yam
industry.
B TECHNOLOGY ABSORPTION.ADOPTION AND INNOVATION.
1) Efforts in brief made towards technology absorption,adoption and
innovation: No new technology has been imported.
2) Benefits derived as a result of the above efforts e.g. product
improvement, cost reduction, product development, import substitution
etc: NIL
3) In case of improved technology imported during the last 5 years,
following information may be furnished.
A) Technology imported N.A.
B) Year of import N.A.
C) Has Technology been fully absorbed N.A.
D) if not absorbed, N.A.
The plants are integrated plants and technology absorption thereof is
almost immposible except for the operational training therein, which
has since been completed. Hence the Company did not import any
technology during the last five years.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO
(f) Activities relating to exports;initiatives taken to increase
exports;development of new export markets for products and services;
and export plans:The company is on the lookout for new export markets
consistently.
(g) Total foreign exchange used and earned:
Rs. in Lacs
Particulars For the year For the year
ended 31.3.2002 ended 31.3.2001
Earned:
Exports (FOB Value) 113.63 284.34
Used:
Foreign Travel 0.97 3.63
Imports (CIF Value):
Raw Material 33.24 19.48
Components a& Spare Parts 3.75 3.35
Plant & Machinery Nil 0.92
Sales Promotion Nil 0.92
Legal & Professional Expenses Nil 0.53
Others (Cap. Goods) 0.89 1.23
Foreign Currency loan (Cap. Goods) 6.89 47.20
Interest on Foreign Currency Loan Nil 3.92
TOTAL 45.74 81.18
For and behalf of the Board
K. G. BAJORIA S. G. BAJORIA
MANAGING DIRECTOR DIRECTOR
Place: Bhiwadi
Dated: 25th June, 2002. |