JAIPUR SYNTEX LIMITED
The Directors have pleasure in presenting the Eighteenth Annual Report
together with the Audited Statement of Accounts of your company for the
year ended 31st March, 1996.
In order to improve the liquidity of the company, the directors have
decided not to declare dividend for the year 1995-96.
MARKET TRENDS AND RAW MATERIAL SCENARIO:
The demand for synthetic blended yarns in 1995-96 was stable. On the other
hand, the industry witnessed fluctuations in the availability and prices of
its primary raw material, Polyester Staple Fibre (PSF). Due to shift from
cotton based textiles to synthetic textiles by mills in South India, as
well as, increased consumption of polyester cotton yarn, the overall
consumption and demand of PSF shot-up substantially during this year. This
resulted in a tight supply position which, in turn, put an upward pressure
on PSF prices.
This situation has been reversed in the first quarter of 1996-97, as
additional capacities of PSF have been commissioned in the country. The
present production capacity of polyester fibre exceeds the overall demand.
The prices of PSF have also returned to levels which were prevailing in the
industry in early part of 1994.
The Union Budget for 1996-97 presented in July is extremely positive for
the synthetic textile industry. There has been an overall reduction in
import duties on all inputs for our industry, including NAPHTA, Paraxylene,
PTA, DMT, MEG, ACN and all synthetic fibres. The Government's policy
stresses the need to make synthetic textiles affordable for the masses by
making it progressively cheaper, so that synthetic textiles will follow the
world-wide trend and become cheaper than cotton textiles in India also. If
the present budget is an indictor of things to come, the future of
synthetic textile companies in India appears to be extremely bright.
In addition to the reduction in import duties on inputs, the Government has
also reduced duties on import of textile machinery which will allow textile
mills in India to modernise their factories by importing the latest
technology and equipment from the world's leaders in textile technology.
This will further make Indian textile companies competitive on the world
All of the above augment a situation of healthy demand for your company's
products; and should therefore, be positive for the company's future
profitability and growth prospects.
EXPANSION AND MODERNISATION SCHEME:
The Expansion and Modernisation Scheme which was partly financed by the
Public Issue is under implementation. A large part of the machinery which
was planned under this scheme has already been installed,including two
autoconer machines of the world renowned Schlafhorst of Germany which have
been imported. These Autoconers are essential for producing export-quality
yarn. With the addition of these machines at the plant, the company is now
equipped to manufacture international quality yarn, which will be exported
to various countries. The company has already initiated action to make an
entry into the European market for synthetic blended yarn and is confident
of making substantial exports in the forthcoming years.
The industrial and personnel relations have been cordial during the year.
The particulars of employees as required under section 217(2A) of the
Companies Act, 1956 read with the companies (Particulars of Employees)
Rules, 1975 are given in the separate Annexure 'A' which forms part of this
ENERGY CONSERVATION ETC.
The particulars as required to be disclosed in terms of section 217(1)(e)
of the Companies Act,1956 (as amended) and the companies (Disclosure of
particulars in the Report of the Board of Directors) Rules, 1988, are set
out in the Annexure 'B' attached hereto and form part of this report.
Shri B.R. Maheshwari and Shri P.C. Maheshwari, the Directors of the company
retires by rotation at the conclusion of this Annual General Meeting, but
being eligible offer themselves for reappointment.
Shri P. C. Gupta has been appointed as an Additional Director till the
conclusion of this Annual General Meeting, but being eligible offers
himself for reappointment.
Shri T.K. Balan has been appointed as Director of the company w.e.f. 29th
February, 1996 as Nominee of IFCI in place of its earlier nominee Shri R.L.
Srivastava. The Directors place on record their appreciation of the
valuable guidance rendered by Shri R.L. Srivastava as Director of the
M/s. S.S. Surana & Co., Chartered Accountants, statutory auditors of the
company retire at the conclusion of this Annual General Meeting. The
Auditors' observations are self-explanatory, hence do not require further
The Directors acknowledge with gratitude for the active co-operation and
support received from the customers, shareholders, Financial Institutions,
Bank and various other Central and State Govt. Agencies.
The Directors also appreciate and place on record devoted and efficient
services rendered by the employees at all levels resulting in improved
ANNEXURE TO THE DIRECTORS' REPORT
INFORMATION AS PER SECTION 217(1) (e) OF THE COMPANIES ACT, 1956 READ WITH
COMPANIES (Disclosure of particulars in the Report of Board of Directors)
RULE, 1988 AND FORMING PART OF THE DIRECTORS' REPORT FOR THE YEAR ENDED
31ST MARCH, 1996
A. ENERGY CONSERVATION:
1. Energy Conservation measures taken:
At Ring Frame Spindle wharve diameter has been changed to 20.4 mm in place
of 22.2 mm in 18 m/cs.
2. Additional investment and proposals being implemented for reducing of
* Energy saving spindle replaced on 4 m/cs and planned to replace on 19
* Over rated H.P. motors have been replaced with optimum requirement H.P.
motors to reduce energy consumption in different departments.
* In 30's Acrylic count where spindle speed remains low, In dual drive
connections of slow & fast motors reversed which resulted in reduction of
3. Impact of the measures at A-1 and A-2 above for reducing of Energy
consumption & consequent impact on the cost of production of goods.
There has been some reduction in power consumption by taking the above
measures. By the increase in spindlage and total production and preparatory
machinery being same, per Kg. unit consumption will further come down.
4. Power & Fuel consumption - Form : A
Current Year Previous Year
a. Purchased unit (Kwh) 6450588 7146647
Total Amount (Rs.) 15690589 15740059
Rate/Unit (Rs.) 2.43 2.20
b. Own generation through
Disel Generator (unit) 3213628 2298295
Unit per ltr. of Diesel oil 3.42 3.45
Cost/Unit (Rs.) 1.99 1.95
Quality B. Grade B. Grade
Where used Boiler Boiler
Quantity (Tons) 1143.840 873.825
Total cost (Rs.) 2640322 1824380
Avg. Rate/Ton (Rs.) 2308.30 2087.80
3. Furnace oil N.A. N.A.
4. Others/Internal generation N.A. N.A.
5. Consumption per unit of
Production product Synthetic Synthetic
Unit M.T. M.T.
Electricity (Unit) 3553 3391
Furnace oil N.A. N.A.
Coal per ton(s) grade (M.T.) 1.4256 1.2598
No standard have been fixed.
Coal is consumed in Dyeing production.
Electricity consumption have been arrived on total packed production.
B. TECHNOLOGY ABSORPTION:
Research and Development (R & D)
a) Specific areas in which R & D carried out in the company.
* Ring dia will further reduced from 42 mm to 38 mm alongwith suitably
designed energy savings spindle to get much higher spindle speed keeping
the yearn content same on the bobbin.
* 4 M/cs ESS along with 38 mm ring dia implemented.
* New Ring Frame are installed with improved type of inventor drive to
improve productivity. Speed can be varied in 9 steps.
b. Benefits derived
* Increase in production
* Improvement in quality of yarn
c. Future plan of action:
* Installation of more electronic slub catcher and splicer.
* Two Autoconers of 60 spindles which have been installed.
* Special attention has been paid for training of workers and staff. In
house training has been planned for further development. Staff is
encouraged to attend seminars by expert bodies. Consultancy services of
NITRA are being utilised for getting ISO 9000 implementation as this is
latest to compare in the market.
d. Expenditure on R & D
Capital - Nil
Recurring expenses can not be segregated.
e. We have exported fabric to Gulf countries from the yarn manufactured by
TOTAL FOREIGN EXCHANGE EARNINGS AND OUTGO
(Rs. in lacs)
1. Foreign exchange earnings 244.12
2. Foreign exchange outgo (CIF value
of imports of raw material) 93.99
For and on behalf of the Board of Directors
Chairman and Managing Director
Place : Jaipur
Date : 20th August, 1996.