you are here:

Spentex Industries Ltd.

BSE: 521082 | NSE: SPENTEX | Series: BZ | ISIN: INE376C01020 | SECTOR: Textiles - Spinning - Cotton Blended

BSE Live

Dec 02, 16:00
2.54 0.11 (4.53%)
Volume
AVERAGE VOLUME
5-Day
105,088
10-Day
112,333
30-Day
70,125
98,390
  • Prev. Close

    2.43

  • Open Price

    2.55

  • Bid Price (Qty.)

    2.48 (2100)

  • Offer Price (Qty.)

    2.54 (2799)

NSE Live

Dec 02, 15:50
2.40 0.10 (4.35%)
Volume
AVERAGE VOLUME
5-Day
35,704
10-Day
26,348
30-Day
17,802
32,410
  • Prev. Close

    2.30

  • Open Price

    2.40

  • Bid Price (Qty.)

    2.40 (75000)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2016 2015 2014 2013 2012 2011 2010 2009 2008

Director’s Report

The Directors have great pleasure in presenting the 16th Annual Report together with the Audited Accounts for the year ended March 31, 2008. FINANCIAL RESULTS The highlights of the financial results are as under: (Rs. in Crores) Particulars 2007-08 Consolidated Standalone Net Sales (Turnover) 1337.31 759.72 Other income 91.78 55.04 EBITDA 134.47 68.72 Financial charges 93.28 67.50 Depreciation 74.55 42.30 Prior period adjustment 1.29 1.12 Profit/(Loss) before tax (PBT) (34.65) (42.20) Provision for current tax 0.01 0.00 Provision for deferred tax(-) 11.52 8.13 Fringe benefit tax 0.47 0.46 Profit/(Loss) after tax (PAT) but before (23.61) (34.53) Minority Interest Minority Interest (1.87) 0.00 Net Profit/(Loss) (21.74) (34.53) 2006-07 Consolidated Standalone 900.57 740.73 52.34 47.17 113.57 88.06 49.74 46.18 54.03 35.70 0.71 0.00 10.51 6.18 0.70 0.70 4.77 0.89 0.41 0.39 14.17 4.20 1.58 0.00 12.58 4.20 OPERATING RESULTS AND BUSINESS This year also the Company has spread its operations in the European markets through acquisition. The Company through its step-down subsidiary, Schoeller Textile Netherlands B.V., Netherlands has acquired interest in Schoeller Litvinov k.s. a partnership firm situated at Czech Republic and acquired its running textiles business having a capacity of 59,000 spindles. During the year under review, your Company has achieved 48.50% increase in its consolidated revenues which stood at Rs.1337.31 Crores as compared to Rs.900.57 Crores in the previous year. Your Companys consolidated Earning before Interest, Depreciation and Tax (EBITDA) 1.18 times to Rs.134.47 Crores over Rs. 113.57 Crores in the previous year. Your Company has recorded a consolidated Loss after Tax of Rs.21.74 Crores against consolidated Profit after Tax of Rs.12.58 Crores. The segment wise reporting of various business segments are provided in Note 21 of Notes to Accounts to the Audited Balance Sheet and also in Management Discussion & Analysis. The Companys Ahemdabad unit, which was purchased in the month of December, 2005 from Bank of India under SERFASI Act, 2002 and started commercial production in the month of May, 2006, the Company as a matter of graceful and strategic exit discontinued the production in the said unit during the year and to optimize existing production capacity and to achieve ecpnomies in production cost, management has decided to shift the required plant & machinery of the said unit to other units of the Company as balancing equipment to manage the capacities to the maximum extent and also to realize the appreciation in value of real estate. During the year under review, the Contract Manufacturing Agreement with Bombay Dying and Manufacturing Company Limited (BDMC) to manufacture yarn exclusively for them at the Companys facility known as Cimmco Spinners located at Solapur (Maharashtra), for which all the Machines were supplied by BDMC, has been terminated and the Company has acquired all Machines from BDMC, for a lump sum consideration of Rs.16.66 Crores. DIVIDEND During the year due to depressed market conditions your Directors do not recommend any dividend. FUTURE OUTLOOK While there are challenges to address, overall the prospects for the Indian textile industry are bright. India is the worlds second biggest textile manufacturer, right after China. India ranks just after China and USA in the production and consumption of cotton. The Indian textiles industry has established its supremacy in cotton based products, especially in the readymade garments and home furnishing segment. Export of readymade garments from India amounted to US$ 8 bn in FY06 and is likely to reach US$ 16 bn by the end of 2010, assuming a conservative growth of 15% per annum. According to estimates, investments in textiles are expected to touch US$ 31 bn by 2010. This presents a large opportunity for your Company given that yarn forms the backbone of the entire textile industry. ISSUE OF SHARES ON CONVERSION OF WARRANTS During the year, promoters have exercised option for conversion of 2,75,000 warrants (Issued on 08-12-2005.) Accordingly, the Company has issued and allotted 2,75,000 Equity Shares on June 07, 2007. This resulted paid-up capital of the Company . increasing from Rs. 71,19,70,350 to Rs. 71,47,20,350 consisting of 7,14,72,035 Equity Shares of Rs.10/- each. CORPORATE GOVERNANCE AND MANAGEMENT DISCUSSION AND ANALYSIS As stipulated under Clause 49 of the Listing Agreement with Stock Exchanges, a report on Corporate Governance is attached separately as a part of the Annual Report and also the Management Discussion and Analysis statement. DIRECTORS Mr. Ram Kumar Thapliyal, Mr. Prem Malik and Mr. Shyamal Ghosh, Directors, retire by rotation and being eligible have offered themselves for re-appointment. AUDITORS AND AUDITORS REPORT M/s. Price Waterhouse, Chartered Accountants, who are the Statutory Auditors of the Company hold office until the conclusion of the ensuing Annual General Meeting and are eligible for re-appointment. The Company has received a letter from them to the effect that their re-appointment, if made, would be in accordance with Section 224(1 B) of the Companies Act, 1956. The Board recommends their re-appointment. The Auditors Report read together with the Notes to Accounts is self-explanatory and do not call for any further explanation under Section 217 (3) of the Companies Act, 1956. COST AUDITORS The Central Government has approved the appointment of Mr. Rajesh Goyal, Cost Accountant of M/s. K G Goyal & Associates, Cost Accountants to conduct the audit of the Cost Accounts of the Company for the financial year ending 31st March, 2008 for the product Textile. FIXED DEPOSITS Your Company has not accepted any deposits within the meaning of Section 58A of the Companies Act, 1956 and rules made there under. SUBSIDIARIES The Company had six subsidiaries/step-down subsidiaries at the beginning of the year. The following two subsidiaries were set up during the year: 1. Schoeller Textile Netherlands B.V., Netherlands 2. Schoeller Textil Verwaltungs GmbH, Germany Ministry of Corporate Affairs, Government of India, vide order No.47/15/2008-CL-lll dated March 4, 2008 has granted approval that the requirement to attach various documents in respect of subsidiary companies, as set out in sub-section (1) of Section 212 of the Companies Act, 1956, shall not apply to the Company. Accordingly, the Balance Sheet and Profit & Loss Account and other documents of subsidiary companies are not being attached with the Balance Sheet of the Company. Financial Information of the subsidiary companies, as required by the said order, is disclosed in the Annual Report. The Company will make available the Annual Accounts and related details upon request by any member of the Company. These documents will also be available for inspection at the registered office of the Company during business hours. The Consolidated Financial Statements presented by the Company includes the financial results of its subsidiary companies. CONSOLIDATED FINANCIAL STATEMENT In accordance with the Accounting Standard AS-21 on Consolidated Financial Statements read with Accounting Standard AS-23 on accounting for Investments in Associates, the audited Consolidated Financial Statements are provided in the Annual Report. DIRECTORSRESPONSIBILITY STATEMENT Pursuant to the requirement of Section 217(2AA) of the Companies Act, 1956, your Directors hereby state and confirm that: a) in the preparation of the Annual Accounts, the applicable accounting standards have been followed and there are no material departures; b) the Directors have selected such accounting policies and applied them consistently and made judgment 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 Loss of the Company for that period; c) the Directors have 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 for preventing and detecting fraud and other irregularities; and d) the Directors have prepared the annual accounts on a going concern basis. PARTICULARS OF EMPLOYEES Information relating to employees of the Company, as required under section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975, as amended, the names and other particulars of employees are set out in the Annexure-I to the Directors Report. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO The information relating to conservation of energy, technology absorption and foreign exchange earnings and outgo as required to be disclosed under Section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 are given in Annexure-I I to the Directors Report. INDUSTRIAL RELATIONS The industrial relations during the year under review remained harmonious and cordial. Your Directors wish to place on record their appreciation for the wholehearted co-operation received from all the employees at various units/divisions of the Company. ACKNOWLEDGEMENTS Your Directors gratefully acknowledge the whole hearted support given by the customers, suppliers, shareholders, employees, Central and State governments, financial institutions, banks and look forward for continued cooperation and best wishes in their endeavor to steer the Company towards greater heights. For and on behalf of the Board of Directors Place : New Delhi Ajay Kumar Choudhary Date : July 31, 2008 Chairman

Director’s Report