arihant cotsyn ltd Directors report

ARIHANT COTSYN LIMITED DIRECTORS REPORT To The Members, Arihant Cotsyn Limited, Your Directors have pleasure in presenting 10th Annual Report of Your Company together with Audited Accounts for the year ended on 31st March, 1998. OPERATIONS: Inspite of overall recession in the economy in general and textile industry in particular, the Company has maintained its total income more or less equal to that of previous Year and generated a total income of Rs. 5815 Lacs reflecting that the recessionary trend has not caused any major impact on the working of the Company. On the other hand, the Companys gross block increased to the tune of Rs.1216 lacs (after revaluation) which reflects the continuous and successful growth of the companys operations as well as commitment in further growth. EXPORTS: The Companys 100% Export Oriented Cotton spinning unit is moving upto mark and running efficiently & effectively to meet the export targets of the Company. Despite of the fact that during the period under review, the Asian Markets has suffered through huge economic crises but still your company has done well and able to maintain its exports upto the level of Rs. 1773 lacs which is a great success keeping in view the downward trend on almost all the countries to which the Company is exporting its products. Further, to boost up its exports the Company has already taken various steps and started to implement those polices effectively. Apart from the countries like South Korea, Mauritius, Italy, Hongkong, Singapore, Bangladesh etc., where the company has successfully established Markets for its products, now the export activities are also extended to Australia and other major European Countries and the management is hopeful to extend it further in the near future. EXPANSION PLANS - In the era of competition now-a-days, expansion is of almost necessity and need of the hour. Keeping in view the ongoing economic & technical developments all over the world, the management of the Company is working towards the implementation of Expansion of existing units and Capacities thereof and had already planned to mobilise the available resources. The management of your company hopes for fruitful results in the coming future. DIRECTORATE - In accordance with the provisions of Companies Act, 1956 and pursuant to the provisions of the Articles of Association of the Company, Sh. K.L. Narang and Dr. O.P. Sahni will be retiring by rotation at the ensuing Annual General Meeting. Being eligible, they offer themselves for reappointment. During the year Sh. B.K. Arora, one of the promoter director has resigned from the directorship of the Company. The Directors placed on record their sincere appreciation for the services rendered by Sh. B.K. Arora during his tenure on the Board of the Company. At the same time to fill up the vacancy arised on resignation of Sh. B.K.Arora, Ms. Ruchika Jain was appointed as a Director of your Company and Board of Directors whole heartily welcome her on the Board of your Company. NOMINEE DIRECTOR OF IFCI: The Industrial Finance Corporation of India Limited (IFCI) has withdrawn the nomination of Sh. M.M. Sikka from the Board of the Company. The directors places on record their sincere thanks for the valuable guidance and co-operation extended by Sh. M.M. Sikka during his tenure on the Board of the Company. AUDITORS: The Companys Auditors, M/s Dass Khanna & Company, Chartered Accountants, are retiring at the conclusion of the forthcoming Annual General Meeting and being eligible offer themselves for reappointment. AUDITORS REPORT: The comments of Auditors and Notes on accounts are self explanatory and do not call for further comments. PUBLIC DEPOSITS: During the year, the Company did not invite and/or accept any deposits with in the meaning of Section 58A of the Companies Act, 1956 and rules made thereunder. PERSONNEL: Information as per Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 and forming part of "Directors Report" for the period ended on 31st March,1998. DISCLOSURE OF PARTICULARS UNDER SECTION 217(1)(E): Disclosure of particulars under section 217(1)(e) of the Companies Act,1956 under the Companies (Disclosure of particulars in Report of the Board of Directors) Rules 1988, is given as per Annexure 1 and forms an integral part of this report. INDUSTRIAL RELATIONS: During the year Industrial relations remained very cordial and harmonious. The Directors express their appreciation to the workmen and staff for their co-operation and dedication towards their work and hope for continuous harmonious relations in future as well. ACKNOWLEDGMENT: Your Directors place on record sincere thanks to the Central Government, Financial Institutions, Banks, The Punjab State Industrial Development Corporation Ltd. and M/s Arihant Industries Limited (both, promoters of your Company), Shareholders, Debenture holders and other business constituents for the valued co-operation and timely support extended to the company from time to time. We are confident that your company will continue to receive such co-operation from them in the future. for and on behalf of the Board For ARIHANT COTSYN LIMITED Sd/- Place: Dhuri (K.L. JAIN) Dated: November 28, 1998 Chairman and Managing Director ANNEXURE TO DIRECTORS REPORT ANNEXURE - I Information as per Section 217 (1) (e) read with companies (Disclosure of particulars in-the Report of Directors) Rules, 1988 and forming part of the Directors Report for the year ended 31st March, 1998. (i) CONSERVATION OF ENERGY The company has taken the following steps for conservation of energy: i. Optimisation of each production unit. ii. Reduction in ideal run of unit. iii. Installation of electric motors of optimum capacity, maximum utilisation of natural light in the plant, introduction of nylon belts to replace conventional belts and use of energy saving devices for lighting circuits etc. iv. As as result of implementation of energy saving schemes, the company has been able to save on fuel consumption to a great extent. FORM `A A. i) TECHNOLOGY ABSORPTION The company has brought and successfully absorbed the latest Airjet Spinning Technology for the first time in the Country which is ten times more productive than the conventional. Efforts made in technology absorption as per Form B of the Annexure to the Rules. 1. RESEARCH & DEVELOPMENT a) Specific areas in which R & D carried out by the Company Research and Development has continuously been carried out for improvement in quality of existing products development of new and improved products and production processes for better productivity. b) Benefits derived as a result of the above R & D As a result of R & D and improved quality of yarn, orders are being received in abundance from Indian Market as well as from Foreign market. c) Future plan of action Development of new fancy yarns and improvement in certain production processes are planned. d) Expenditure of R & D Expenditure of R & D is continuous process and the expenditure incurred thereon has not been segregated and accounted for separately. Hence, it is not possible to give the same in the required format. 2. Technology, absorption, adaptation and innovation a) Efforts, in brief, made towards technology absorption, adaptation and innovation The company has brought and successfully absorbed the latest Airjet Spinning Technology for the first time in the Country which is ten times more productive than the conventional technology. b) Benefits derived as a result of the efforts e.g. Product improvement cost reduction, product development, import substitution etc. Improved quality product. 3. Imported Technology (Imported during the last 5 years). Airjet Spinning Technology (iii) FOREIGN EXCHANGE EARNINGS AND OUTGO A. Activities relating to Exports, inititatives taken to increase export, development of new export markets for products and services and export plans. Efforts are being made by the company to develop export market for export of yarns. B. Total Foreign Exchange used and earned 1997-98 1996-97 EARNED 17,73,06,060 18,20,38,993 Used: Raw Material ---- 38,93,066 Components & Spares 17,78,704 4,26,081 Travelling 6,99,225 11,62,938 Capital Goods 46,66,396 2,81,91,600 for and on behalf of the Board of ARIHANT COTSYN LIMITED Sd/- PLACE: Dhuri (K.L. JAIN) DATED: 28-11-1998 CHAIRMAN AND MANAGING DIRECTOR