Aarvee Denim and Exports
BSE: 514274 | NSE: AARVEEDEN | ISIN: INE273D01019 | Textiles - Denim
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
- Raw Materials
| Directors Report | Year End : Mar '08 |
The Directors have pleasure in presenting the 19th Annual Report along
with the Audited Statement of Accounts for the year ended March 31,
2008.
FINANCIAL RESULTS
The highlights of the Financial Results are given below:
( Rs.in Lacs)
Year ended Year ended
31.03.2008 31.03.2007
Total Revenues
(including non recurring income) 25209.41 25212.73
Profit Before Depreciation, interest
and taxation 3890.90 5721.60
Less: Interest 1221.02 529.54
Profit after interest but before
Depreciation and Taxation 2669.88 5192.06
Less : Depreciation 2085.07 1624.65
Add: exceptional income on sale of land 0 142.78
Add: Prior Period Adjustments 31.76 -0.70
Profit After Depreciation 616.57 3709.49
Less : Provision For Taxation 81.45 462.88
Less : Provision For Deferred Tax 0 203.58
Profit After Taxation 535.12 3043.03
Appropriations / Adjustments
Less: short provision for taxation for
earlier years 1.23 8.02
PROFIT FOR THE YEAR 533.89 3035.01
Balance of profit / (loss) brought forward 8359.13 6193.57
Preference Dividend 0 194.89
Equity Dividend 0 229.74
Corporate Dividend Tax (including
Edu. cess and surcharge) 0 68.82
Capital Redemption Reserve 300.00 300.00
General Reserves 0 76.00
Profit carried to Balance Sheet 8593.02 8359.13
PERFORMANCE DURING THE YEAR:
The year 2007-2008 was yet another challenging year for the Denim
Industry. Turnover/ Income of the Company for the year remain same at
Rs. 25209.41 Lacs compared to previous year at Rs. 25212.73 Lacs.
Operating profit for the year is Rs. 3890.90 Lacs compared to 5721.60
Lacs which shows decrease by 32% due to lower sales realization and
increase in Raw material cost by 14%, Employment cost by 15% and
Depreciation charge by 28%.
Profit after tax for the year is 535.12 Lacs compared to Rs. 3043.03
Lacs in previous year.
DIVIDEND
In order to inadequate profit and to conserve resources for on going
future expansion and growth, your Directors do not recommend any
dividend for the year.
BUSINESS OVERVIEW:
The year 2007-08 shows down turn as compared to 2006-07 in the denim
market. The slowdown can be attributed to recessionary tendencies,
excess capacity, and appreciation in Indian Rupees. Domestic sales
slipped in volume as well as realization. However, exports turned up by
43%. As part of continuing cost reduction strategy, the company has
installed another 8 windmills making the total capacity from 8.5MW to
20.5MW. This has resulted substantial savings of power and fuel cost.
As the Denim sector is plunged into excess capacity, the Company has
utilised some of the production capacity for non denim fabric and
Garments. Moreover, as a de-risking strategy your company started
producing and selling of value added products through Exclusive Brand
Outlet (EBOs) with brand name DE EXTASE. As on 31st March 2008, eight
EBOs have been commenced. And till the end of March 2009, company
expects to open 100 EBOs.
CORPORATE GOVERNANCE
Pursuant to the requirements of Clause 49 of the Listing Agreement with
the Stock Exchanges, a report on Corporate Governance and a Certificate
from the Auditors of the Company regarding compliance with Corporate
Governance guidelines as stipulated and Management Discussion &
Analysis report have been attached by way of separate Section as part
of this Annual Report.
DIRECTORS
Shri Rajesh P. Arora and Shri Sanjay Majmudar retire by rotation as per
the provisions of Articles of Association of the Company. Your
Directors recommend their reappointment.
AUDITORS
Auditors of the Company M/s. N.C. Shah & Associates, Chartered
Accountants and M/s Deloitte Haskins & Sells, Chartered Accountants,
will retire at the conclusion of the ensuing 19th Annual General
Meeting from the office of the Auditors and being eligible offer
themselves for re-appointment from the end of the ensuing Annual
General Meeting till the conclusion of the next Annual General Meeting.
The notes to the accounts referred to in the Auditors Report are
Self-explanatory and therefore do not call for any further comments.
The Company has adequate system of internal control procedures
commensurate with the size of the Company and the nature of its
business to keep check on the activities of the various departments.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to sub-section (2AA) of Section 217 of the Companies Act,
1956, the Board of Directors of the Company hereby state and confirm
that:
(i) in the preparation of the Annual Accounts, the applicable
accounting standards have been followed;
(ii) the Directors had 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 of
the Company for that period.
(iii) the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and or preventing and detecting fraud and other
irregularities;
(iv) the Directors had prepared the annual accounts on a going concern
basis.
DEPOSITS
For the Financial year ending March 31, 2008 the company has accepted
fixed deposits to the tune of Rs. 477.74 lacs. The Company repaid the
deposits amounting to Rs. 244.88 lacs and the outstanding deposits at
the end of the year were amounting to Rs. 232.86 lacs.
INSURANCE
All properties and insurable interests of the company including
building, plant and machinery and stocks wherever necessary and to the
extent required have been adequately insured.
PARTICULARS OF EMPLOYEES
Particulars required by the provisions of Section 217 (2A) of the
Companies Act, 1956 read with the Companies (particulars of Employees)
Rules, 1975 as amended have not been provided since no employee is
drawing remuneration in excess of prescribed limits as per above
provisions.
CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY BY
ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
Details required to be disclosed under section 217 (1) (e) of the
Companies Act, 1956 read with Companies ( Disclosure of particulars in
the Report of the Board of Directors) Rules, 1988 are set out in
Annexure of this Report.
APPRECIATION
Your Directors place on record their appreciation of the contribution
made by employees at all levels. Your Companys growth was made
possible by employees support, co-operation, commitment, solidarity
and hard work.
Your Directors wish to take this opportunity to express their deep
sense of gratitude to the Central and State Governments, banks,
financial institutions, shareholders and customers for their
co-operation and support and look forward to their continued support in
future.
By order of the Board
Place : Ahmedabad Vinod P. Arora
Date : 30th June, 2008 Chairman |
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| Source : Religare Technova | |
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