viral syntex ltd Directors report

ANNUAL REPORT 1998-99 Viral Syntex Limited DIRECTORS REPORT To the Members of, Viral Syntex Limited The Directors have pleasure in presenting their Annual Reports and Accounts for the year ended 31st March, 1999. THE YEAR IN RETROSPECT: The Sales for the year under review, were Rs. 113.53 Lakhs as against Rs. 2051.67 Lakhs for the previous financial year. The Loss for the year was at Rs.688.63 Lakhs, in the previous year the loss was Rs. 1345.60 Lakhs. The Company had hardly any realisation in sales due to shut down of factory consequent to shortage in working capital and therefore the Company could not generate sufficient supply to meet the order. The situation got further worsened due to recession in the Polyester Industry and no sign of revival in the near future. However, the Company is confident that once the working capital is unfreezed by the Bank, it hopes to improve the working as well as profitability on full capacity utilisation. PRODUCT DEVELOPMENT: The Company during the year has been able to develop innovative product called ECOMAAST which are PET based Master Batches. It has large Export Market. The Company is likely to improve its margins on production of ECOMAAST range of Master Batches which are used as coloring Agents for producing Colored fibres, once regular commercial production is taken up. PRODUCTION: The capacity utilisation and production came down drastically for reasons such as recession in the Polyester Industry and lack of working capital finance. The Company is making all efforts to improve the situation. FUTURE OUTLOOK: The Indian and Foreign Markets have bottomed out. The Company has since received several large value Inland orders as well as Export Orders. The Company is getting geared upto large volume production of profitable Polyester Products. In the coming years the Company is certain to improve the Sales & Profits, once it restarts its operations to a large extent. EXPORTS: The Company continued to export its products to many countries and the exports for the year under review stood at Rs.20.00 lakhs. The Company has taken several efforts to increase its exports and the same are expected to bear fruits in the future workings. TECHNOLOGY ABSORPTION, RESEARCH & DEVELOPMENT: Constant upgradation of technology and innovative ideas turned into value added products shall be the highlights of the R & D. The efforts of such upgradation shall bear fruits in future. The R & D Centre is striving to find many new products and their applications and processes. State-of-Art R & D Center functioning at the plant at Ankleshwar was instrumental in developing Core Spun Yarn which is in good demand and at good price realisation rates. CONSERVATION OF ENERGY: The Company has taken effective steps to conserve energy. Though the energy cost is very minimal, the Company has already installed State-of-the art energy monitoring devices so that the consumption of energy is minimised as well as the sophisticated electronic equipment are protected from damage due to wild fluctuations in power supply. PERSONNEL: The Board of Directors wishes to express its appreciation to all the employees of the Company for their outstanding contribution to the operations of the Company as well as for the harmonious and cordial relationship enjoyed during the year. AUDITORS: Mr. Ganesh Toshniwal, Chartered Accountants have been appointed as Auditors as the erstwhile Auditors M/s. S.K. Agarwal & Associates, Mumbai have resigned w.e.f. 18.08.1999. APPRECIATION: For the continuous support extended by Companys Bankers, Bank of India, Industrial Development Bank of India and other Financial Institution, the Directors wish to thank them all and the Shareholders for their valuable co-operation and dedicated support extended to the Company at all times. For and on Behalf of the Board Sd../- K. KHANDELWAL CHAIRMAN Place: Mumbai Dated: 01.09.99