INDUSTRY STRUCTURE AND DEVELOPMENT :

The company has effected sales turnover of Rs 15.82 crores as against Rs 43.16 crores last year in respect of yarn and Rs 5.65 crores as against Rs 23.05 crores last year in respect of Ready made Garments.

OPERATION OF UNITS:

The Open End Spinning Mill (Unit -1) at Kittampalayam and Waste Processing Unit (Unit-7) were in operation till 30-9-2015. The Lenders have taken physical possession of the above two Units on 1 -10-2015 and sold in the e-auction held on 18-12-2015. In the Open End Spinning Unit, during the period from 1-4-2015 to 30-9-2015, the Company has effected Yarn sales. Besides, The Company was doing trading activities.

The Lenders have sold the Garment Stitching Unit on 6-7-2015 and Garment Washing Unit on 18-12-2015. Consequently, the Garment manufacturing activities have become paralysed totally.

During the year under review, the Company has incurred loss amounting to Rs 38.80 crores.

OUTLOOK

As stated in DirectorsReport, the Lenders have sold all the Units (except Unit- 8) and other Assets belonging to the Company for Rs 152.05 crores and adjusted the sale proceeds against the loan due. With all the Assets sold (except Unit-8), the company can do only trading activities.

FINANCE

The Report about Finance is elaborately given in the Directors Report to the Shareholders.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

During the year under review, the Statutory Auditors of the Company M/s Thakker & Sanghani, Chartered Accountants have resigned and to fill up the casual vacance arised out of the said resignation, M/s M. Gangadharan & Co, Chartered Accountants have been appointed as Statutory Auditors of the Company to conduct for the Financial Year 2015-16.

The Audit Committee of the Board of Directors periodically review the financial positions, audit plans, internal audit reports adequacy of internal controls and risk management.

INDUSTRIAL RELATIONS

Industrial relations continued to be harmonious in Units 1 and Unit-7 which were runiino ud to 30-9-2015.

FINANCIAL PERFORMANCE AND ANALYSIS

Particulars 2015-16 2014 -15 Change Increase (+) Decrease(-) %
Turnover 26,03,26,588 74,35,46,393 -48,32,19,805 -64.99
Other Income 1,48,166 34,00,037 -32,51,871 -95.64
Gross Revenue 26,04,74,754 74,69,46,430 -48,64,71,676 -65.13
PBIDT -5,09,26,444 2,79,87,101 -2,29,39,343 -81.96
Interest 12,83,09,507 29,32,16,756 -16,49,07,249 -56.24
PBDT -17,92,35,951 -26,52,29,654 -8,59,93,703 -47.98
Depreciation 1,60,52,766 22,97,08,262 -21,36,55,496 -93.01
Net Profit/Loss before Tax -38,80,44,586 45,92,95,648 -7,12,51,062 -15.51

During the year under review, the Company has incurred loss amounting to Rs 38.80 crores.

SEGMENTWISE OR PRODUCTWISE PERFORMANCE GARMENTS

The companys Garment Division has registered sales of Rs. 5.65 crores as against Rs.23.04 crores previous year. As stated earlier, there was a hit in the Apparel market during the year under review.

The energy generated out of the two wind mills are captively consumed. These two winds mills were sold by the bankers In the e-aution.

FINANCE

The report about finance is elaborately given in the Directors report to Shareholders.

RISK AND CONCERNS

Even after the entire assests of the Company have been sold by the lenders and adjusted the proceedes against the loan payable by the company, still the company owes huge liability to the banks towards loan aacount. In the absence of any assets on hand and scope for revenue, it looks a great threat on the part of the company with regard to settlement of the bank dues.

Further the company has also received from the following departments directing the company for the payment of penalty, and the payment of it or also a threat on the part of the company under the present situation of the company.

1. The Director General of Foreign Trade, Coimbatore has passed orders on 20-1-2016 levying penalty to the extent of Rs 55,90,28,760/- due to non-fulfilment of Export Obligation in respect of 45 Licences issuded to the company. The company has preferred an Appeal against this Order before the Deputy Director General of Foreign Trade, New Delhi and the matter is sub-judice.

2. The Company has also received demand for Rs 1,53,77,000/- from the office of the Assistant Commissioner of Customs, Chennai, due to non-fulfilment of Export Obligation in respect of 6 Licences issud to the company.

3. The Assistant Commissioner of Commercial Taxes Mettupalayam Road Circle, Coimbatore has issued a demand notice directing the company to pay a sum of Rs. 20.07 lakhs towards Additional Sales Tax payable relating to the Assessment year 1999-2000.

4. The Assistant Commissioner of Income Tax, Coimbatore has issued a demand notice directing the company to make the payment of 3.42 crores towards Income Tax payable relating to Assessment year 2013-2014.

By Order of the Board
For GANGOTRI TEXTILES LIMITED
MANOJ KUMAR TIBREWAL
MANAGING DIRECTOR
Place: Coimbatore MOHANLAL TIBREWAL
Date : 30.5.2016 EXECUTIVE DIRECTOR

   

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