KRYSTAL KNITWEAR LIMITED
To The Members,
Your Directors have pleasure in presenting their Eleventh Annual Report and
Audited Accounts of the Company for the year ended 31st March' 1998.
In the earlier year prices of Raw Material (POY) witnessed very substantial
decline and consequently prices of finished goods were also correspondingly
reduced This initially generated considerable demand for Polyester Yarn
Industry. However this surge in the demand lost its strength due to very
weak demand from the export sector mainly relating to fabrics and garments.
As a result of aforesaid factor and the general impact of phenomenon of
slowdown in the economy the under current in the demand for the Polyester
Yarn Industry was somewhat weak. Despite of all the adverse factors, there
is distinct revival of the company's activity. Capacity utilisation of the
plant has improved and the turnover of the company has shown improvement of
about 121 %.
During the first half of the current year company has experienced shortage
of Raw Material at reasonable prices. However efforts are being made to
overcome this problem and to improve the efficiency utilisation of the
Your Directors do not recommend dividend for the year under review.
The Company has not accepted any deposit from the Public under Section 58A
of the Companies Act,1956 during the Year ended 31st March' 1998.
In accordance with the requirement of the Companies Act, 1956,
Mr.T.S.Bindra who retires by rotation at the ensuing Annual General Meeting
and being eligible offers himself for re-appointment.
The present Auditors of the Company M/s. SHETH & CO., Chartered
Accountants, Mumbai will retire at the ensuing Annual General Meeting and
being eligible, offer themselves for reappointment as Auditors of the
Company for the Financial year 1998-99.
They have submitted Certificate for their eligibility for re-appointment
under Section 224(1B) of the Companies Act, 1956.
PARTICULARS OF EMPLOYEES
No employee was paid remuneration for which information is required to be
given in the director's report under Section 217(2A) read with the
Companies (Particulars of Employees) amendments Rules, 1988.
The Technology required for the industry is available indigenously.
INFORMATION UNDER CLAUSE 43 OF LISTING AGREEMENT WITH STOCK EXCHANGE
PROJECTIONS Vs PERFORMANCE FOR THE
YEAR APRIL97 TO MARCH'98
(Rs.in lacs) Variation
Projections Actual In Rs. IN % age
Sales & Other Income 2,237.50 749.95 1487.55 66
Gross Profit & Other
Income Dep&tax 390.95 72.82 318.13 81
Net Profit 194.40 1.15 193.25 99
The variance in actual, when compared with the projections is due to the
wide-spread sluggishness experienced during the year by polyester yarn
processing industry coupled with decline in the prices of Raw Materials as
well as Finished Goods.
NAME OF THE STOCK EXCHANGES AND ADDRESS
1.THE STOCK EXCHANGE MUMBAI.
Phiroje Jeejeebhoy Towers,
25th Floor, Dalal Street,
Mumbai - 400 001.
2.THE LUDHIANA STOCK EXCHANGE
Feroze Gandhi Market,
Ludhiana- 141 001.
The Listing fees of Mumbai Stock Exchange is paid. The Members of the
Company has passed Special Resolution in 10th Annual General Meeting held
on 30.09.97 and the Company has informed The Ludhiana Stock Exchange, the
decision of Members of the Company for delisting in view of the cash saving
measure and therefore the fees of Ludhiana Stock Exchange is not paid.
Your Directors acknowledge with gratitude the co- operation and assistance
given by United Bank of India.
The Directors also wish to place on record their sense of appreciation for
the devoted services rendered by executives, staff and workers of the
FOR AND ON BEHALF OF THE BOARD
137, A-1, SHAH & NAHAR INDUSTRIAL ESTATE
S.J. MARG, LOWER PAREL
MUMBAI - 400 013.
DATE :- August 17, 1998.