Your Directors present the Nineteenth Annual Report and the Audited
Statement of Accounts of the Company for the financial year ended 31st
(Rs. in lacs)
For the For the
year ended year ended
31st March, 2005 31st March, 2004
Gross Sales 42,505.35 35,300.78
Less: Excise Duty 8,441.79 7,713.58
Net Sales 34,063.56 27,587.20
Gross Profit before
and write off 1,831.64 3.548.58
Depreciation 1,707.10 2,868.92
written off - 13.58
Net Profit for the year 124.54 666.08
Your Directors regret their inability to propose any dividend in view
of the accumulated losses of the Company.
Shri V.N. Nadkarni, Director, retires by rotation at the ensuing Annual
General Meeting and being eligible offers himself for reappointment.
The Company has received the requisite Form DD-A from Shri Nadkarni,
in terms of Companies (Disqualification of Directors under 274(1)(g) of
the Companies Act, 1956) Rules, 2003, confirming his eligibility for
such re-appointment. The Board recommends the re- appointment of Shri
V.N. Nadkarni at the ensuing Annual General Meeting.
Directors Responsibility Statement
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956 with respect to Directors Responsibility Statement, it is
hereby confirmed that: (i) in the preparation of the annual accounts
for the financial year ended 31st March, 2005, the applicable
accounting standards have been followed;
(ii) the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that were 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 the year under review;
(ii) the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities;
(iv) the Directors have prepared the annual accounts on a going
The Company has not accepted any deposit within the meaning of Section
58A of the Companies Act, 1956 and the rules made thereunder.
Conservation of Energy, Technology Absorption and Foreign Exchange
Earnings & Outgo
Information in accordance with the provisions 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 given
in the Annexure forming part of this report.
None of the employees of the Company are in receipt of remuneration
prescribed under Section 217 2(A) of the Companies Act, 1956, read with
the Companies (Particulars of Employees) Rules, 1975.
Auditors & Auditors Report
The Statutory Auditors Messrs. Shah Baheti Chandak & Company, retire at
the conclusion of the ensuing Annual General Meeting. The Company has
received a consent letter from them to the effect that their
appointment, if made, would be within the prescribed limit under
Section 224 (1B) of the Companies Act. 1956 and also that they are not
otherwise disqualified within the meaning of sub-section (3) and (4) of
Section 226 of the Companies Act, 1956, for such appointment. The Notes
to Accounts referred to in the Auditors Report are self-explanatory
and, therefore, do not call for any further comments.
The Company has taken adequate steps to ensure that the conditions of
Corporate Governance as stipulated under Clause 49 of the Listing
Agreements of the Stock Exchanges are complied with. A separate section
on Corporate Governance and a Certificate of the Auditors of the
Company regarding compliance of conditions of Corporate Governance as
stipulated under Clause 49 of the Listing Agreement with the Stock
Exchanges, form part of the Annual Report.
Your Directors place on record their appreciation of the assistance and
support extended by all financial institutions, banks, government
authorities, suppliers, service providers, customers and shareholders.
Your Directors express their appreciation for the dedicated and sincere
services rendered by all the employees of the Company.
FORM - B
Form for disclosure of particulars with respect to Technology
1. Research and Development:
a. The specific areas in which Research & Development was carried out
by the Company are:-
i. Installation of Inter mingling jets
ii. Disposal of waste finish oil.
iii. Extension of existing product range of POY
iv. Optimization of the process parameters for increasing productivity
and better performance in spinning and texturing process.
v. Changes to operating condition of the spin finish oil and designing
of cooling coil system
vi. Changes to the packing system for damage free transportation
vii. Changes on spin packs to improve spinning performance.
b. Benefits derived from successfully completed Research & Development
i. Improvement in POY quality and run-ability at high speeds in
ii. New products Range with value addition
iii. Improvement in process stability and product performance
iv. Reduction in Packing Cost.
v. Reduction in breaks and improvement in Quality
c. Future Plan of Action:
i. Capacity enhancement in Value added products
ii. Further de-bottlenecking of CP plant for enhancing the capacity to
170 TPD from current level of 133 TPD
iii. Production of specialty flat yarns on draw winder.
d. Expenditure on Research and Development:
R&D activities are carried out for development of cost effective
additives / product development / Process development by concerned
departments in collaboration with Reliance Technology Center. No
separate accounts are kept since it is difficult to identify costs
solely attributable to R&D activities.
2. Technology Absorption, Adaptation and Innovations:
The Company has continuous interaction with the collaborators as well
as equipment manufacturers on new developments.
C) FOREIGN EXCHANGE EARNINGS & OUTGO
(a) Activities relating to exports, initiatives to increase exports,
development of new export markets fOor products and services and export
plans : Not applicable.
(b) Total Foreign Exchange used and earned. i) Total foreign exchange
earned : Nil
ii) Total foreign exchange
used : Rs.677.86 lacs
For and on behalf of the Board
I. F. Sheth
Date : 16th May, 2005