Arrow Textiles Ltd

BSE: 533068 | NSE: ARROWTEX | ISIN: INE933J01015 
Market Cap: [Rs.Cr.] 22.35 | Face Value: [Rs.] 10
Industry: Textiles - Products

Director's Report

Your Directors present their Sixth Annual Report together with the Audited Statement ofAccounts for the year ended 31st March 2013.


(Rs. in ‘000)
Particulars Year ended 31.03.2013 Year ended 31.03.2012
Income for the year 3,73,449.83 3,33,334.57
Profit before Interest, Depreciation and Tax 87,831.92 74,910.11
Finance Charges 28,481.10 28,783.31
Profit before Depreciation and Taxes 59,350.82 46,126.80
Depreciation & Amortisation 44,621.59 43,240.61
Provisions for Taxation/ Deferred Tax (15,192.07) 5,602.45
Prior Period Items / Extra Ordinary Items 153.92 -
Net Profit for the Current Year 29,767.38 (2,716.26)
Net Profit available for Appropriation 1,013.38 3,729.64
Balance carried to Balance Sheet 30,780.76 1,013.38


The Directors do not recommend any dividend for the Financial Year ended 31st March,2013.


During the year under review, your Company recorded a total income of ` 3,73,449.83 (`‘000). For further information, kindly refer to Management Discussion and AnalysisReport, forming part of this Annual report.

Corporate governance report

Pursuant to Clause 49 of the Listing Agreement, the Management Discussion &Analysis Report and Corporate Governance Report together with Certificate from Auditors ofthe Company, on compliance with the conditions of Corporate Governance as laid down, formspart of this Annual Report.

Particulars of employees

In terms of provisions of Section 217 (2A) of the Companies Act, 1956, read with theCompanies (Particulars of Employees) Rules, 1975, the names and other particulars of theemployees are set out in the Annexure to the Directors’ Report. However, havingregard to the provisions of Section 219 (1)(b)(iv) of the said Act, the Annual Reportexcluding the aforesaid information is being sent to all members of the Company and otherentitled thereto. Any member interested in obtaining such particulars may write to theCompany Secretary at the Registered Office of the Company.

Particulars regarding conservation of energy, Technology absorption and foreignexchange earnings and outgo

The particulars as required under Companies (Disclosure of Particulars in the Report ofthe Board of Directors) Rules, 1988 are furnished in the Annexure A to this Report.


At the ensuing Annual General Meeting, in accordance with the provisions of theCompanies Act, 1956 and the Articles of Association of the Company, Mr. Jaydev Mody,Director of the Company retire by rotation and being eligible, offer himself forre-appointment.

The brief resume/details relating to Mr. Jaydev Mody, Director of the Company to bere-appointed is furnished as an Annexure to the notice of the ensuing Annual GeneralMeeting.

Your directors recommend his re-appointment at the ensuing Annual General Meeting.

Directors’ responsibility statement

Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956, withrespect to Directors’ Responsibility Statement, the Directors confirm that: 1. in thepreparation of the annual accounts for the financial year ended 31st March, 2013, theapplicable accounting standards have been followed alongwith proper explanation relatingto material departures; 2. the Directors have selected such accounting policies andapplied them consistently and made judgments and estimates that are reasonable and prudentso as to give a true and fair view of the state of affairs as at 31st March, 2013 and ofthe profit of the Company for the year under review; 3. the Directors have taken properand sufficient care for the maintenance of adequate accounting records in accordance withthe provisions of the Companies Act, 1956, for safeguarding the assets of the Company andfor preventing and detecting fraud and other irregularities.

4. the Directors have prepared the accounts for the financial year ended 31st March,2013 on ‘going concern’ basis.

Fixed deposits

During the year under review, the Company has not accepted any fixed deposits from thepublic.


The Board of Directors recommends to re-appoint M/s. Amit Desai & Co., CharteredAccountants as Statutory Auditors of the Company, who retire at the conclusion offorthcoming Annual General Meeting and are eligible for re-appoinment. M/s. Amit Desai& Co. have given their consent to act as Statutory Auditors, if re-appointed. Membersare requested to consider their re-appointment. The auditors comments on theCompany’s accounts for the year ended on 31st March, 2013 are self explanatory innature and do not require any explanation as per the provisions of Section 217(3) of theCompanies Act, 1956.

Cost auditor

As per the requirement of Central Government and pursuant to the Section 233B of theCompanies Act, 1956, your Company carries out an audit of cost records every year. Subjectto the approval of the Central Government, the

Company has appointed M/s. Shilpa & Co., Cost Accountants as Cost Auditors to auditthe cost accounts of the Company for the Financial Year 2013-14. As required under theprovisions of Section 224(1B) read with Section 233B(2) of the Companies Act, 1956, theCompany has obtained a written confirmation from the Cost Auditor to the effect that theyare eligible for appointment as Cost Auditors under Section 233B of the Companies Act,1956 and also a certificate certifying their independence and arm’s lengthrelationship with the Company.

The Cost Audit Report and Compliance Report for the Financial Year 2011-12 which wasdue to be filed with the Ministry of Corporate Affairs on or before 28th February 2013 (asper General Circular No. 2/2013 dated 31st January 2013 of Ministry of Corporate Affairs)was filed on 27th February 2013.


Your Directors express their sincere appreciation of the co-operation received fromshareholders, bankers and other business constituents during the year under review. YourDirectors also wish to place on record their deep sense of appreciation for the commitmentdisplayed by all executives, officers and staff, resulting in the successful performanceof the Company during the year.

By order of the Board of directors,



Mumbai, 7th May, 2013

Registerd Office:

Plot No. 101-103,

19th Street, MIDC,

Satpur, Nasik, Maharashtra.

Pin – 422 007.




a) Energy conservation measures taken:

The Company continues its policy of giving priority to energy conservation measuresincluding regular review of energy generation and consumption and effective control onutilization of energy.

The following energy conservation methods were implemented during the year:

a) Use of energy efficient equipments

b) Intensified Internal Audit aimed at detecting wastage of electricity.

c) Campaign based synchronization of utilities with plant operations.

b) Additional investments:

a) The Company is continuously installing electronic devices to improve quality ofpower and reduction of energy consumption.

b) Continuing with energy conservation measures on above lines.

c) Impact of above measures: The adoption of energy conservation measures have resultedin savings and increased level of awareness amongst the employees. The energy conservationmeasures have also resulted in improvement of power factor, consequential tariff benefits.

d) Total energy consumption and energy consumption per unit of production As per Form A

B Technology aBsorpTion

As per Form B

Form - A


a. Power & fuel consumption: 2012-13 2011-12
1. Electricity
a. Purchased
Unit: (’000 KWH) 2835.73 2200.25
Total Amount (` in lacs) 206.12 145.91
Rate / per unit (KWH) 7.27 6.56
b. Own Generation
(i) Through diesel generator nil NIL
(ii) Through steam turbine/generator nil NIL
2. Coal nil NIL
3. Furnace Oil, LSHS & L.D. Oil nil NIL
4. Others / Internal Generation nil NIL
B. Consumption per unit of production:
1. Electricity
Narrow Fabrics (per mtr.) : 0.32 0.21
Labels (per piece) : 0.03 0.03
2. Coal nil NIL
3. Furnace Oil, LSHS & L.D. Oil nil NIL
4. Others nil NIL

The consumption of electricity depends upon the product mix used and the nature of theproduct manufactured. Thus the above indicates an average consumption per unit ofproduction.


Disclosure of particulars with respect to technology absorption etc.: research anddevelopment (r&d)

1. Specific Areas in which R&D has been carried out by the Company Product Research is carried out on an ongoing basis.
2. Benefits derived as a result of the above R&D Produced various and lots of different products & improved product quality.
3. Future plan of action To provide variety of improved quality products to the customers.
4. Expenditure on R & D Not identified separately

Technology absorption, adaptation & innovation

The Company has developed B2B software through which our customers can see almost allthe information they require online 24X7. Using our software, they can create an artworkfor multilingual wash-care labels online by punching a few variable information. With helpof ERP & B2B software, we have overhauled our entire service approach to exceed ourcustomers growing expectations.

Foreign exchange earnings and outgo:

During the year, the foreign exchange outgo was ` 35632.12 (` ‘000) (L.Y. `29515.49) (` ‘000) the foreign exchange earned was ` 38680.18 (` ‘000) (L.Y. `52581.81) (` ‘000).

By order of the Board of directors,



Mumbai, 7th May, 2013

Registered Office:

Plot No. 101-103,

19th Street, MIDC,

Satpur, Nasik – 422 007,


Futures & Options Quote
Future Data Not present
Key Information

Key Executives:

Chand Arora , Managing Director

Harshvardhan Piramal , Director

Aditya Mangaldas , Director

Aurobind Patel , Director

Company Head Office / Quarters:

Plot No 101-103 19th Street,
MIDC Satpur,
Phone : Maharashtra-91-0253-3918200 / Maharashtra-
Fax : Maharashtra-91-0253-3918220 / Maharashtra-
E-mail :
Web :


Freedom Registry Ltd
Plot No. 101/102,MIDC, 19th Street,Satpur,Nasik - 422007

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