The Directors of the Company have pleasure in presenting their 18th
Annual Report on the business and operations of the Company.
FINANCIAL RESULTS 1997-98 1998-97
(Rs. Lacs) (Rs. Lacs)
a. Total Income 544060 6065.00
(including exports) (3778.86) (4516.79)
b. Operating Profit 44943 932.19
Interest & Finance charges 446.05 927.93
c. Net Profit 3.38 4.26
Surplus carried to Balance Sheet 3.38 4.26
The period under review saw gradual improvement in business sentiment.
Textile industry in particular witnessed weak demand & intense
competition amongst the suppliers. Low agricultural output resulted in
higher raw material costs which could not be passed on to the customers
due to competitive international markets and subdued demand. In order
to meet these challenges the product mix is being restructured through
introduction of new varieties of blended yarns. The Company is now
engaged in manufacture of specialised and dyed yarns The directors have
laid emphasis on marketing of these products in international markets
in a big way. Efforts are also being made for development of domestic
market for the company's products. Measures to control cost at all
levels are being implemented to improve profitability.
Mr. Sonjoy Sethee ceased to be director of the company consequent upon
withdrawal of nomination by IFCI. The Directors place on record their
sincere appreciation for the services rendered by Mr. Sonjoy Sethee
during his association with the Company.
Mr. T. A. Subramanian and Mr. B. L. Sarda retire by rotation and being
eligible. offer themselves for re-appointment.
REQUIREMENT U/S 217 OF THE COMPANIES ACT, 1956
Additional information regarding the Conservation of energy, Technology
absorption and Foreign Exchange earnings and outgo as required U/s
217(1)(e) of the Companies Act, 1956 is annexed and forms a part of
The retiring auditors M/s S. S. Kothari & Co., Chartered Accountants
are eligible for re-appointment for the year 1998-99. They have
furnished a certificate in terms of section 224(1B) of the Companies
Act, 1956 certifying their eligibility to continue as auditors, if
CHANGE IN ACCOUNTING YEAR
The accounting year of the company had been changed from the period
ended on September 30th, to the period ending on December 31st, and
accordingly, the accounts for the period under review are for 15 months
from 1st October, 1997 to 31st December 1998.
The deposits accepted by the company are being paid according to their
terms & conditions.
The operations & manufacturing process of the company are Y2K compliant.
Additional information as required under Section 217(1)(e) of the
Companies Act, 1956 read with Companies (Disclosure of particulars in
the Report of Directors) Rule, 1988 end forming part of the Directors'
Report for the period ended 31st December, 1998.
RESEARCH & DEVELOPMENT
1. The Research & Development efforts in the company are focussed on
qualify control and improvement of in house expertise & innovation in
production of high end premium products which are eco-friendly.
2. The Company has derived benefits from its Research & Development
activities by way of improvement in product quality, cost effectiveness
and a consistent, controlled manufacturing process.
3. Research & Development Deptt. of the Company is being equipped with
latest generation machines for carrying out studies on the various
factors which have bearing on the process parameters.
The Company has been frequently organising training programmes for its
personnel to train them with latest art of technology. Acquisition of
latest generation machines and presence of Organised work culture has
resulted in quality products matching international standards alongwith
achieving better productivity.
FOREIGN EXCHANGE EARNING AND OUTGO
a) Earning : Export Yarn on FOB 3778.86 4516.79
b) Outgo: i) Imports 80.64 188.72
ii) Expenditure 54.68 52.83
c) Net Foreign Exchange Earnings 3643.54 4275.24