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Vertex Spinning Ltd

BSE: 531544 | NSE: ISIN: INE863F01038
Market Cap: [Rs.Cr.] 7.11 Face Value: [Rs.] 10
Industry: Trading

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Director's Report
DIRECTOR

To

The Members,

We have pleasure in presenting to you the Annual Report along with the audited accounts for the year ended on 31st March 2013.

FINANCIAL RESULTS

(Amount in Rs.)

Particulars 31.03.2013 31.03.2012
Sales 40,040,000 38,70,42,129
Other Income
Increase / decrease in stock 9.00 1,71,613
Total expenditure 55,847,104 417,998,310
Profit before tax (15,807,104) (30,956,181)
Current Tax
Deferred tax liabilities
(849,981) 10,53,992
Profit after tax 14,957,123 (29,902,189)

DIVIDEND

Keeping in mind the expansion plans of the Company and also to conserve the resources of the Company and to utilize the resources for the Company's Mega Textile Park at Nardhana, Dist. Dhule, the Board of Directors does not recommend a dividend for the financial year 2012-13.

REVIEW OF OPERATIONSAND FUTURE PROSPECTUS

In the backdrop of the financial crisis witnessed in the previous financial years and the subsequent fallout, FY 2012-13 was an extremely challenging year for your Company. The operations of the Company also hit by the market sentiments and overall profitability of the company is also shown downtrend during the year.

During the year under review the sales turnover of the Company changes to Rs.40,040,000/- as compared to previous years of Rs. 387,042,129/-. Also the net profit/Loss after tax also moved down from the last year. The net loss after tax reduced during the year and stood at Rs. 14,957,123/-.

Your Company continues with its task to build businesses with long-term goals based on its intrinsic strengths in terms of its powerful brands, quality manufacturing prowess, distribution strengths and customer relationships. To accelerate further value creation, your Company continues to evaluate new areas of growth. The initiatives aimed at rationalizing and streamlining operations, to bring about efficiencies and reducing costs, remain top priority.

ASIA'S BIGGEST TEXTILE PARK AT NARDHANA. DIST. DHULE (MH.)

Initially MIDC was requested to allot 400 acres of land to Vertex on 1 September 2006 for a textile park in Nardhana. Thereafter MIDC offered the same to Vertex on November 3, 2006. Consequently on December 28, 2006 an MOU was signed by the MIDC CEO, Mr. Jalota and the Vertex CEO, Mr. Suresh Sharma. Advance possession of land took place on January 2, 2007.

The status of MEGA PROJECT came about to be conferred on Vertex Spinning Limited by the Government of Maharashtra on 29 September 2007. This was signed by the principal Secretary, Mr. Jayrath in the presence of Mr. Ashok Chavan then Minister of Industries and present Chief Minister of Maharashtra, and Mr. Satish Chavan, Textile Minister of the Government of Maharashtra. Registration of the lease deed for 99 years took place on August 8, 2008. Subsequently the VERTEX INTERGRATED TEXTILES PARK plan layout was approved on 12 February 2009.

MIDC on 3rd July 2009 reached water on site from the Tapi Basin, MIDC installed a 5 Megawatt Power Station in the month of August 2009, which will be handed over to the MSEB for supply of power in November 2009.

Maharashtra accounts for 25% or 65 million kilograms of the India's total cotton production. This important region produces 17% of cotton yarn on 16.6 spindles of country's total installed capacity. The State has the largest number of 100% Export Oriented units, that's more than 560 or 22% of the country's EOU. The state also accounts for 30% of the Country's exports which amounts to more than Rs. 897 billion.

These statistics are witness to how the VERTEX INTEGRATED TEXTILE PARK and the prospective associated are to benefit from not just another textile park but an INTEGRATED TEXTILES PARK in Nardhana a place in a region formerly known as Khandesh before Marathas.

10 Kilometres of internal roads, a 5 Megawatt MSEB sub-station out of the planned 100, water facilities, street lamps etc. are already in place. This township offers readymade galas starting from 5000 squares ft. to larger made to order sheds, industrial buildings and factories depending on individual needs.

Also on offer are attractive investment opportunities in the Commercial Facility Centre (CFC) for a Club House and Gym, Hospitals and Nursing Homes, Banks and ATMs, Hotels and Food Courts, and Schools and Colleges.

Generously spread out between latitude 20 38' to 21 61' N and longitude 73 50' to 75 11'. Nardhana spans across 8061 Square Kilometres. The Satpuda Hills bound the region in the north. The height varying between 300 to 600 meters above sea level makes for cooler dispositions.

The Tapi Basin supplies water to the region, which has a population of 7, 19,785 lacs. The Dhule talukas sub-divisions has approx 168 villages. Nearby, Sakri accounts for more than 225 villages. Shirpur accommodates 138 villages, while Shinkheda another sub division has around 143 villages.

The National Highway NH6 from Surat to Nagpur, the NH3 from Mumbai to Agra, and the NH-211 from Dhule to Sholapur make Nardhan, primarily a cotton growing area, central to the nation's textile industry.

The NARDHANA VERTEX INTEGRATED TEXTILES PARK stands to be the first MIDC level Private Sector Industrial Park. The Park also happens to be the first Private Sector Industrial Park to have 1 FSI (Floor Space Index) for the plot area. With 99years lease hold on properly, permissions have been also been granted for hypothecation of land and building to financial institutions.

The park also has an extra street radial feeder power supply. There are registered plant and machinery suppliers on site. The project aims to build valuable Foreign Exchange.

Finished products can be display at the facilities made available here. Arrangements of Contractors, Architects, Electrical Suppliers, and Contractors have been made. The park fails under the octroi free zone. There are stamp duty exemptions unit.

MIDC has approved the town planning layout. Effluent Treatment Plant (ETPs), Sewage Treatment Plants (STPs), and Distributed Effluent Treatment Plant (DETP) Systems are part of the park. .

An 18 meters or 60 feet wide CC Road with footpath and street light hopes to keep the town bustling with activity. A 12 meters or 40 feet wide CC Internal Road hopes to keep the place well connected. The park has a well-planned duct drench System for utilities. 15% green space has been allocated to keep the project, environment friendly.

Local Bus and State Transportation facilities are on the charts. The project promises case to basis, height and margin relaxation. The township ensures low maintenance cast with a healthy atmosphere. Basic infrastructure here includes, Compound Lancing for Security , Drainage System, Sewage Collation and Dumping System, Solid Waste Collation and Dumping System, , Power Sub-Station and Distribution Systems, Water Storage and Distribution System, Street Lighting Water Harvesting, Storm Water Management, Landscape Gardens, a 5 Star Hotel, an Engineering Collage and a Medical College with a 300 bed Hospital, a Police Station, a Bus Terminal, Rickshaw Stands, Car Parks a Truck Terminal along with Weighing Scales, Petrol, Diesel, and Gas Pump Stations, Fire Lighting arrangements, and everything that's necessary for smooth functioning.

As per plan, 64.58 percent of the allotted land comes under Sub plot with measures up to 924071.21 square meters. 5.51 percent or 77098.78 square meters has been allocated for CFC or commercial plots. The open spaces areas measure up to 140500.08 square meters which amounts to 10.03 percent of the land. 19.8 percent or 78329.83 square meters makes up the total road area.

Woolen Hosiery, Cotton Knitted Fabric, Furs, Dying and Processing, Woven Textiles, Shawls, Technical Textile, Spinning, Polyesters, Worsteds, Acrylic, Texturising, Carpets Handlooms, Auto Looms, Sizing Units, Cone Machinery, Washing, Banarasi Sari, Silks, Packaging, Readymade Garments, Bulletproof.

Clothing, Flex Clothing, Multilayer Films, Tarpaulin, Tent House Cloth, Poly Cotton Canvas, Road Fabric and Cloth, Fire Brigade Clothing, Mineral Textiles, Aramid Clothing, Spandex Textiles, Lurex, Embossing Rolls, Squeezing and Dying Plants, Spindle mfg, Adhesive Plants, Stick Formulations, Weighing Scales, Screen Printer mfg, qots Grinding Plants, Water Treatment Plant mfg, Manufacturing Computer mfg, Plastic Plant mfg, Bobbin Plant mfg, Insulation Plant mfg, Paper Tubes mfg, Industrial Lighting, Tools Pneumatic mfg, Humidification Plant and Monitor mfg, Electrical Units, Compressors mfg, Frequency Inverter mfg, Ginning and Processing mfg, Non Woven Textile, Printing, Chemicals, Auto Corners and Blowers, Winding Plant mfg, Table Calendar Machines, Testing Instrument mfg, Industrial Shoes mfg, Electrical Cable mfg, Calendaring mfg, Hardware and Fasteners Units, Wrapping mfg, Weaver Beams and CI Graded Hubs (foundry), Blankets mfg, Dyes and Chemicals Plants, V-Belt mfg, Nuts, Springs, and Compressors mfg, Washing Plant mfg, Carding, Drawing Units, Ginning Industries, and more are expected to associate with this unique venture.

Here's how associates are going to benefit. All types of micro and small units are allowed under the Industrial Promotion Subsidy 40% fixed capital investment for 8 years. Under the same subsidy, all types of medium and large units are allowed 25% fixed capital investment for 5 years.

Micro and small hosiery knitwear and ready garment units are allowed a 20 lacs limit for a period of 5 years. Electricity Duty Exemptions are to be granted for a period of 15 years. In the Octroi Free Zone, refund of Octroi duties are on the charts. All units are to be allowed stamp duty exemption upto March 31, 2012.

All units are also liable to a maximum of 5% interest subsidy on the plant and machineries for Technology up gradation. All units are to have subsidy on quality certification valued to the tune 50% expenses upto 1 lac. Similarly all units are to have subsidy on patent registration to the tune 50% expenses upto 5 years.

Take a look at the finance involved with the project. The total capital outlay of the project estimates at Rupees 3990 Cr. (approx 883 Million US Dollars) including investments in Land, Factory Building, Plant and Machinery and common infrastructure and facilities.

NEW PLANT

Your Company is undertaking continuous endeavors for expansion of its domestic and overseas customers by implementing new facilities. For establishing manufacturing facilities. Your Company has started work for its Nardhana Plant. The Company has already purchased land situated at MIDC, Nardhana Industrial Area, Dist. Dhule and taking off possession from MIDC Authorities. The power and water has reached to the site and the company will start building construction activity their. The company will expected to start production activity their in the current Financial year 2012-13.

DIRECTORS

Shri Sachin Sharma and Shri S.B. Mohapatra are being liable for retire by rotation and offer them self to appoint further as Director of the Company.

The brief particulars of all Directors, for which approval of members for their appointment or re-appointment are sought, have been provided below pursuant to Clause 49 of the Listing Agreement relating to Corporate Governance.

REAPPOINTMENT/APPOINTMENT OF DIRECTORS:-

ATTHE ENSUING ANNUAL GENERAL MEETING, SHRI SACHIN SHARMA AND SHRI S. B. MOHAPATRA, DIRECTORS OF THE COMPANY ARE LIABLE FOR RETIRE BY ROTATION AND ELIGIBLE OFFER THEMSELVES FOR REAPPOINTMENT.

PURSUANT TO CLAUSE 49 (VI) (A) OF THE LISTING AGREEMENT RELATING TO THE CODE OF CORPORATE GOVERNANCE, THE PARTICULARS OF AFORESAID DIRECTORS AREGIVEN BELOW:-

SHRI SACHIN SHARMA AND SHRI S B MOHAPATRA , HAVE VAST KNOWLEDGE OF ACCOUNTS, AUDITING, TAXATION, RESTRUCTURING, MANAGEMENT INFORMATION SYSTEM ETC. THEY ARE ASSOCIATED WITH THE GROUP COMPANIES IN VARIOUS CAPACITIES AND HAVE ACQUIRED KNOWLEDGE AND EXPERIENCE IN THE MANAGEMENT OF THE COMPANY.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to the provisions of Sec 217(2AA) of Companies Act, 1956, the Directors state that:

That in preparation of the annual accounts, the applicable accounting standards have been followed along with proper explanations relating to material departures, if any.

That the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give true and fair view of the state of affairs of the company at the end of the financial year and of the profit of the company for that period.

That the Directors have taken proper and sufficient care of the maintenance of adequate accounting records in accordance with the provisions of this act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.

That the Directors have prepared the annual accounts on a going concern basis.

DEPOSITS

The company has not accepted any deposit from the public attracting the provisions of Sec 58A of the Companies Act 1956.

AUDITORS

M/s. Ashish Vyas & Co., Chartered Accountants, Dewas, the retiring auditor who have express their willingness for re-appointment.

Therefore M/s Ashish Vyas & Co., Chartered Accountants, Dewas, is proposed by a member of the Company, to appoint as Auditor of the Company. They have furnished a certificate to the effect that their appointment if made, would be within the prescribed limits under Sec 224(1B) of the Companies Act 1956.

AUDITORS' REPORT

Report of the auditors and their observations and notes to the accounts of the company for the year under review are attached herewith which are self-explanatory and do not require further explanation.

CONSERVATION OF ENERGY. TECHNOLOGY ABSORPTION. ADAPTATION AND INNOVATION & FOREIGN EXCHANGE EARNING AND OUTGO

This information required to be given under section 217 (1) (c) of the Companies Act, 1956 read with the Companies (Disclosure of particulars in the Report of the Director) Rules 1988 is annexed herewith.

PARTICULARS OF EMPLOYEES

The information required under Sec 217(2A) of the Companies Act 1956 is not given as there was no employee in receipt of remuneration during the year, exceeding the limits prescribed by the Companies (Particulars of Employees) Rules, 1975 as revised.

LISTING

Your Company continues to be listed on the Stock Exchange, Mumbai where the Company's Shares are being Traded. The Company has paid Listing Fees for the year 2013-14.

MANAGEMENT DISCUSSIONAND ANALYSIS

Management discussion and Analysis Report is provided in separate section and forming part of this report.

CORPORATE GOVERNANCE

Your Company believes that Corporate Governance is a voluntary code of self discipline. In line with this policy, the Board of Directors strongly believes that it is very important that the company follows healthy Corporate Governance practices and reports to shareholders the progress made on the various measures undertaken. Therefore, your Directors have been reporting the initiatives on Corporate Governance measures adopted by your company.

ACKNOWLEDGEMENT

The company has developed a very cordial, warm and close relationshipwith the Investors, various Government and Semi-Government Departments, Banks and Financial Institutions, Customers, Suppliers and other service providers. The Board of Directors wish to gratefully acknowledge the co-operation, assistance and guidance received from all of them. The company could make the progress it has in these years due to the dedication and creativity of its staff at all levels. The Board of Directors wishes to place on record its warm appreciation for these efforts.

For and on behalf of Board of Director
Sd/-
(Suresh Sharma)
Chairman
Place: Mumbai.
Date: 01/09/2013.
   
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Key Information

Key Executives:

Sachin Sharma , Director

Suresh Sharma , Chairman & Managing Director

S B Mohapatra , Director

S K Mishra , Director


Company Head Office / Quarters:

1011 Embassy Centre,
207 Nariman Point,
Mumbai,
Maharashtra-400021
Phone : Maharashtra-91-022-22823367/68 / Maharashtra-
Fax : Maharashtra-91-022-22832445 / Maharashtra-
E-mail : sales@vertexspinning.com
Web : http://www.vertexspinning.com

Registrars:

Purva Sharegistry (India) Pvt
Shiv Shakti Indust,Unit No 9 Lower Pare,7 B J R Boricha Marg,Mumbai-400011

 
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