Gangotri Textiles
BSE: 521176 | NSE: GANGOTRI | ISIN: INE670B01028 | Textiles - Spinning - Cotton Blended
- 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 Nineteenth Annual Report
of the Company along with the audited statement of accounts for the
year ended 31st March 2008.
FINANCIAL RESULTS (Rs. in Lakhs)
PARTICULARS 31.03.2008 31.03.2007
Sales Turnover 15883.75 16536.50
Profit before interest, depreciation and tax 2058.84 2490.04
Less :
Interest 2006.52 848.11
Depreciation 1454.74 1194.58
Loss before tax -1402.42 447.35
Add / Less :
Taxes of prior years 17.26 -
Prior year expenses - 5.13
-1419.68 442.22
Add :
Surplus brought forward 147.69 35.94
Taxes of prior years - 7.78
MAT Credit entitlement - 91.60
Prior year adjustments Income 3.09 -
Investment fluctuation reserve 0.02 -
TOTAL -1268.88 577.54
APPROPRIATIONS :
Provision for Tax - Income Tax - 51.00
Provision for Tax - Wealth Tax 1.00 1.00
Provision for Tax - FBT 12.00 10.00
Provision for Deferred Tax - 31-3-2008 -547.65 157.07
Proposed Dividend - 31.3.2007 - 163.07
Corporate Dividend Tax - 27.71
Transfer to General Reserve - 20.00
Surplus carried over to Balance Sheet / Transfer
from General Reserve -734.23 147.69
TOTAL -1268.88 577.54
PERFORMANCE
As is the normal practice, the performance of the Company during the
year under review is dealt with exhaustively in the Management
Discussion and Analysis, which forms part of the Annual Report, that is
being circulated.
DIVIDEND
In view of the loss incurred by the Company during this financial year,
the Directors are not recommending any Dividend for the financial year
ended 31st March, 2008.
CAPITAL
You will find that the Paid-up Capital of the Company as on 31.3.2008
is Rs.16,30,73,170/-. representing 3,26,14,634 Equity Shares of Rs 5 /-
each. As already reported last year, the Promoters were allotted and
issued 16,00,000 Share Warrants of Rs 5/- each on 1-3-2006 subject to
the condition that 10 % of the Warrant amount amounting to Rs 80,00,000
/- to be paid at the time of allotment and the balance 90 % of the
Warrant amount amounting to Rs 7,20,00,000 /- to be paid within a
period of 18 months ie on or before 1-9-2007. Since the Promoters
failed to pay the balance 90% of the amount within the stipulated time,
the initial payment of Rs 80,00,000 /- made by them was forfeited.
Hence the Paid-up Capital of the Company remains at Rs 16,30,73,170/-.
PROJECT
The Company has completed the project of establishing its Weaving and
Processing Division, as also expansion in the Ring Spinning Division at
Pushpathur Village. It has also installed the Wind Mills. All these
expansion schemes are in line with the project as given in the
Prospectus which has been subsequently revised in consultation with the
Lead Managers to Issue and which fact has been intimated to the Stock
Exchanges and also made a note of in the quarterly results published
from time to time.
As at the end of the year, the Companys Open End Spinning Units are
functioning at Kittampalayam, Ponnandampalayam and Village Alate in the
District of Kolhapur in Maharashtra. The total rotors functioning in
all the three put together is 5904. The Ring Spinning Unit with 17376
spindles is functioning at Pushpathur Village in Palani Taluk.
Waste Processing unit, which has been established as part of the
expansion scheme is functioning at Mopperipalayam Village. The Washing,
Weaving and Processing units are functioning at SIPCOT Industrial
Growth Centre, at Perundurai. The stitching unit is functioning at
Peelemadu, Coimbatore.
PROSPECTS
Textile Industry, for the past more than a year and half, is undergoing
unprecedented adverse conditions. There has been a steep increase in
prices of Cotton. All representations to the Government to stop
exports of cotton to facilitate softening of price have not yet yielded
any results in the wake of Globalisation. The yarn prices have not been
remunerative at all and the movement is also very sluggish. The power
situation is matter of grave concern. While there are frequent
obstructions in the power supply by Electricity Board, Captive
Generation either with Diesel Oil as fuel or Furnace Oil as fuel is
prohibitively costly. On the labour front, there is absolutely shortage
of skilled labour. Recent steps taken by the Government of Tamil Nadu
in so far as the apprentice front do not augur well for the future of
the Industry.
On the whole, the Textile Industry whether it is Spinning, Weaving,
Processing or Garmenting is at cross roads and time alone can prove
whether this Industry, which meets one of the basic requirements, will
survive.
DEPOSITS
Public deposits accepted by your Company are well within the prescribed
limits of the provisions of Section 58A of the Companies Act, 1956 and
all the rules and procedures connected with the acceptance of deposits
have been complied with fully. There are no unclaimed or overdue
deposits in the Company.
LISTING AND DELISTING
As already informed in the last year Report, the Company has applied
for De-listing of its Equity Shares from 1) Madras Stock Exchange
Limited 2) Coimbatore Stock Exchange Limited and 3 )The Calcutta Stock
Exchange Association Limited in view of the fact that trading
activities in the above stock exchanges have become negligible.
However, the shares are continued to be listed in 1) Bombay Stock
Exchange Limited and 2)National Stock Exchange of India Ltd which have
got reach across the length and breadth of the Country. Intimation for
de-listing of the shares has come from Madras Stock Exchange Limited
and intimation from Coimbatore Stock Exchange Limited and The Calcutta
Stock Exchange Association Limited are still awaited.
The company has paid the listing fee to the National Stock Exchange of
India Ltd and the Bombay Stock Exchange Ltd for the financial year
2008-2009 already.
DIRECTORS RESPONSIBILITY STATEMENT In terms of the requirement of
Section 217 (2AA) of the Companies Act, 1956, the Directors hereby
confirm:
i. That in the preparation of Annual Accounts, the applicable
Accounting Standards have been followed;
ii. That the Directors have 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 as at 31st March, 2008 and of the loss of the
Company for the year ended on that date.
iii. That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provision of the Act, for safeguarding the assets of the Company and
for preventing and detecting fraud and other irregularities.
iv. That the Directors have prepared the Annual Accounts on a going
concern basis.
DIRECTORS
Two Directors, Mr. C.R. Swaminathan and Mr. S. Palanisamy are due to
retire at the ensuing 19th Annual General Meeting and being eligible
offer themselves for reappointment. The necessary particulars as
required are given in the meeting notice.
AUDITORS
M/s Thakker & Sanghani, Chartered Accountants and M/s Srikishen & Co,
Chartered Accountants, the Auditors who have been appointed to hold
office till the conclusion of this Annual General Meeting have given
the necessary certificates envisaged under Section 224 (IB) of the
Companies Act, 1956. They are entitled to be re-appointed.
GENERAL
There are no employees falling under Section 217 (2A) of the Companies
Act, 1956.
ACKNOWLEDGEMENT
Your Directors wish to thank and record their appreciation to all the
Bankers of the Company for their valuable financial support extended to
the Company. Your Directors also wish to thank the suppliers and all
others who have contributed their mite either directly or indirectly to
the Companys growth and prosperity. Your Directors record their
appreciation of the co-operation and contribution made by the employees
at all levels towards the progress of the Company.
By Order of the Board
For GANGOTRI TEXTILES LIMITED
Coimbatore MOHANLAL TIBREWAL MANOJ KUMAR TIBREWAL
28.06.2008 Executive Director Managing Director |
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