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Aryan Finefab
BSE: 514134|NSE: ARYAFINFAB|SECTOR: Textiles - Composite Mills
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Aryan Finefab is not traded in the last 30 days
Aryan Finefab is not traded in the last 30 days
Directors Report Year End : Mar '99   
FINANCIAL HIGHLIGHTS                              31.03.99     31.03.98
                                                (12 Months)  (12 Months)
 
 Sales & Other Income                             2,29,857      4,88,118
      
 Gross Profit/ (Loss)                            (1,02,293)       28,830
      
 Less :
      
 Financial Charges                                  28,994        26,688
      
 Depreciation                                       12,581        17,858
      
 Profit/(Loss) Before Tax                        (1,43,868)     (15,716)
      
 Income Tax                                          Nil          Nil
      
 Net Profit/(Loss) Available for Appropriation   (1,43,868)     (15,716)
      
 Prior Period Adjustments                           42,993        13,054
      
 Balance Brought From Previous Year                   Nil         21,125
      
 Dividend @ Nil (P.Y. Nil)                            Nil         Nil
      
 Transfer From/to General Reserve                1,02,357          7,643
      
 Balance Carried Forward                          (84,504)        Nil
 
 DIVIDEND
 
 The Board of Directors of the company have decided to forgo dividend
 during the year on account of Loss incurred by the company.
 
 APPROPRIATION :
 
 The Net result of operations have resulted in Loss and hence no
 appropriations are made for the year.
 
 PRESENT WORKING AND REASONS FOR LOSS :
 
 The company has operated in the year under review at a very low capacity which works out to 15 % capacity
utilisation of weaving units and 30 % process house approximately.  Liquidation of stocks and roll over and
recovery from debtors was extremely difficult due to bad economic situation prevailing in the country and the
economy as a whole.
 
 The Hongkong and Shanghai Bank, one of the participating banks to
 companies working capital requirement exited where by triggering
 working capital crisis, Rs. 100 lacs was liquidated from the companies
 accounts directly. No alternative bank could be inducted inspite of the
 efforts made by the management due to bad economic situation prevailing
 in the country.  Hongkong Bank has gone ahead and filed recovery suit
 against the company, which is being contested in the Honurable Court.
 
 Even the existing bank who gave the sanction for enhancement of limit
 did not disburse the limit due to apprehension created by the withdrawal of limit by The Hongkong & Shanghai
Bank, As the exiting bank continued to force for repayment.
 
 Expansion project suffered due to ensuing liquidity crisis and lack of
 working capital funds.
 
 Apart from internal and external constraints the market conditions kept
 on deteriorating in terms of demand and prices due to South-East Asian
 crisis and substantial currency devaluation in most of these countries,
 rendered our product incompetative and also dumping tendency of crisis
 ridden South-East Asian countries flooded the market with cheap goods.
 
 Company suffered severe set back in its export market and due to general recession even local markets was
very difficult.  The current year could be termed as one of the toughest year in terms of finance, business
and production thus resulting in loss as shown in the results above.
 
 INSURANCE :
 
 Barring work-in-progress on capital account of expansion project, All
 the properties belonging to the Company are duly insured against all
 risks.
 
 CONSERVATION OF ENERGY, TECHNOLOGY AND FOREIGN EXCHANGE :
 
 Additional information on conservation of energy, technology, absorption, foreign exchange earnings and
outgo as require to be disclosed in terms of Section (217)(1)e of the Companies Act 1956 read
 with the Companies (Disclosure of Particulars in the Report of Board of
 Directors) Rules 1988 is annexed hereto and forms part of this report.
 
 PERSONNEL :
 
 Industrial relations are cordial.  The Directors express their
 appreciation for the support given and contribution made by the employees at all levels to the successful
operation of the company.
 
 AUDITORS OBSERVATION :
 
 Regarding the observations made by the Auditors in their Report, the
 notes referred to by them are self explanatory and require no further
 comments of the Board.
 
 AUDITORS :
 
 M/s Kapoor & Co. Chartered Accountants, Ahmedabad, the Auditors of the
 Company will be retiring at the ensuing Annual General Meeting and being eligible, offer themselves for
re-appointment.
 
 DIRECTORS :
 
 In accordance with the provisions of the companies Act, 1956 and the
 company's articles of association.  Shri Arvind Kumar Rai retires by
 rotation and being eligible offers himself for re-election Shri Alok
 Tyagi resigned as director of the company with effect from 27th Octomber 1999, The directorswish to place on
record their since appreciation of the advice and counsel rendered by Shri Alok Tyagi during their long and
distinguished tenure as Directors of the company.
 
 Shri Amarnath Rai appointed as a director on 31st July 1999 in the casual vacancy caused by the resignation
of Alok Tyagi ceases to hold
 office at the forth coming Annual General meeting and is proposed for
 reappointment.
 
 STATUTORY INFORMATION :
 
 The information required under section 217(2A) of the Companies Act 1956 is given as per separate Annexure
enclosed.
 
 Y2K complaince :
 
 The company has taken adequate precaution to overcome Y2K problems.  The company does not expect any major
bottlenecks in operation due to Y2K related issues.
 
 1.  ANNEXURE TO THE DIRECTOR'S REPORT
 
 Disclosure of particulars with respect to Conservation of Energy,
 Technology Absorption and Foreign Exchange Earnings and out go, as
 required under the Companies (Disclosure of Particulars in the Board of
 Director's Report) Rules 1988.
 
 A.  Conservation of Energy :
 
 (a) Energy Conservation Measures taken :
 
 The Company has been giving high priority to conservation of energy on
 continuous basis by close monitoring of energy consuming equipment,
 optimising use of steam and close liasion between energy producing
 centres and consuming points, as Company has installed all latest
 equipments to optimise the consumption of energy.
 
 (b) Additional investments and proposals, and proposals, if any, being
 implemented for reduction of consumption of energy : NIL
 
 (c) Impact of measures at (a) and (b) above for reduction in energy
 consumption and consequently cost products has reduce.
 
 The aforesaid measures have resulted in reduction in energy consumption
 and consequently cost of production stands reduce.
 
 (d) Total energy consumption and energy consumption per unit of
 production As per Annexure `A' attached
 
 Research and Development : (R & D)
 
 1.  Specific areas in which R & D carried out by the company.
      
 - Improving product quality and developing new product qualities.
      
 - Improving productivity and reducing cost of production.
 
 - Controlling wastes and fabric damages.
 
 - Change in sizing mix to reduce cost of production benefits derived as
 a result of above efforts e.g.  product, improvement cost reduction,
 product development.
      
 - Due to various measures taken company has reduce its cost of production.
 
 Future plan of Action :
 
 Continuing R & D in the relevant area.
 
 Expenditure on R & D :
 
 Expenditure on in-house research and development has been shown under
 respective heads of expenditure in the profit and loss account as no
 separate account is maintained.
 
 Technology absorption, adaption and innovation :
 
 As this plant came in operation in 1990, which is based on latest
 technology prevailing in the world.  Plant has inherent properties of
 low consumption of energy and high production efficiency.
 
 Foreign Exchange earning and out go :
 
 The company has exported goods directly and through export houses.
 During the year company has realised foreign exchange amounting to Rs.
 237.70 lacs (P. Y. Rs. 799.69 lacs) through direct exports.  Company
 has incurred a sum of Rs. Nil (P. Y. Rs. 402.45 lacs) and Rs. Nil (P.
 Y. Rs. 42.04 lacs) towards purchase of imported raw material, consumables and Rs. 5.11 lacs (R. Y. Rs. 1.85
Lacs) for foreign travelling expenses.
Source : Dion Global Solutions Limited
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