arihant industries ltd Directors report

ARIHANT INDUSTRIES LIMITED DIRECTORS REPORT The Members ARIHANT INDUSTRIES LIMITED Your Directors have pleasure in presenting the Nineteenth Annual Report of the company, Audited Accounts and Ca Flow Statement for the Year ended March 31. 199R OPERATIONS: Despite of continued recessionery conditions and liquidity crunch prevailing during year under review, your company has posted a turnover and other income of Rs.16086.82 lacs as compared to Rs. 13503.02 lacs during previous year. The Profit before Financial Expenses, Depreciation, Taxation & Capital Issues expenses (to the extent written off) is Rs. 1996.14 lacs as compared to Rs.2609.19 lacs in previous year. After providing for interest, depreciation, tax & capital issues expenses the amount available for appropriation is Rs.857.26 lacs as compared to Rs.1241.67 lacs for the last Financial Year. CURRENT OUTLOOK AND FUTURE PLANS While the depreciating rupee and a sluggish economy effects all Industries, the textile sector faces additional complexity on account of cut-throat competition. The company is gearing up to meet these challenges by rationalising and restructuring its activities. You company has a brandname,committed and skilled work force and strong network of dealers through- out the country. During the current year all the divisions of the company are performing well and the Company is poised for higher turnover during the current year. FIXED DEPOSITS Fixed Deposits outstanding from Public as on 31.3.1998 were Rs.89.99 lacs. Out of these deposits, 9 deposits of Rs.59000 were due for payment on or before 31.3.1998. The company is waiting for the instructions of the depositors in this regard. INDUSTRIAL RELATIONS Your Directors gladly report that industrial relations during the year under review remained cordial. The Directors record their appreciation of the support and co-operation of all employees. Particulars of Employees as required under section 217 (2A) of the Companies Act, 1956 are annexed to this report and forms part of this report. DIRECTORS Shri K.L.Narang,and Sh.l.M.Aggarwala Directors, retire at the forthcoming Annual General Meeting of the company and being eligible offers themselves for re-appointment. Mr. B.K.Arora resigned from the Board of Directors due to pre- occupations. Your Directors place on record their appreciation for the valuable service rendered by Mr. B.K. Arora during his tenure. PROJECT IMPLEMENTATION Your Directors have pleasure to inform that the Cotton Spinning Unit of the Company at Baddi became partially operational during the year and the product of the Unit has been well accepted by the market. AUDITORS M/s. Dass Khanna & Company, Chartered Accountants, Auditors of the company retire at the forthcoming Annual General Meeting and are eligible for reappointment. You are requested to re-appoint auditors for the current year. INSURANCE The properties of the company are adequately insured. COST AUDIT M/s. P.K Verma and Associates have been re-appointed to carry out the Cost Audit for the year. AUDITORS REPORT The observations in the Auditors Report are dealt in the notes forming part of accounts at appropriate places and same being self explanatory, no further comments are considered necessary. ACKNOWLEDGEMENT Your Directors take this opportunity to place on record their warm appreciation to the valuable contributions and spirit of dedication by the employees at all levels in an economically depressing year. The Directors also express their gratitude for the co-operation and support extended by distributors, dealers, suppliers, customers, financial institutions, banks, various government organisations, shareholders and look forward to their continued support and co-operation in coming years also. On Behalf of the Board For Arihant Industries Ltd. Sd/- K.L.Jain Chairman & Managing Director Place :Ludhiana Dated :27-11-1998 ANNEXURE 1. A. Conservation of Energy The company has been continuously making efforts through its dedicated team to achieve high productivity. This has enabled the company to not only reduce energy consumption but also to increase production. a) Energy conservations measures taken. i) Mechanical Equipments like Nylon Bushing, Nylon Belts have being used to avoid friction losses, resulting into Saving of energy. ii) Energy saving equipments such as capacitors, Auto paper Factor correction meter etc. have been installed. iii) Additional energy saving equipments such as UPS, Voltage Stabilizers, Power capacitors, Heat Exchangers Economisers, Cyclone (Dust collector) have been attached with some of the machines to save energy. iv) Auto transformer type electrical equipments for single phase supply have been used to avoid break down and t reduce lighting load. v) Installation of Air preheater for hot oil heaters. vi) Improved utilisation of steam generation potential in the Heat recovery steam generators utilising the exhaust heat from boiler. vii) Modified steam traps network in dryer heaters to reduce steam consumption. viii) Various modifications and installations carried out in processing machines like fixing separators, traps, PRVs term perature controllers etc. B. Disclosure of particulars with respect to technology Absorption 1. Research & Development (R & D) a) Specific areas in which R & D carried out by the company Development activities of the company are directed towards energy conservation, pollution control and quality improvement of existing products, development of new products & production process for better productivity. b) Benefits derived as a result of the above R & D. (i) Improvement in specific consumption of energy in the process plant on account of the energy saving schemes explained under the head "Conservation of Energy" c) Future plan of action d) Expenditure on R & D Current year Previous year i) Capital - 0.05 lacs ii) Recurring 6.40 lacs 5.15 lacs iii) Total 6.40 lacs 5.20 lacs iv) Total R & D expenditure as percentage of total turnover 0.04% 0.04% 2. Technology Absorption, adoption and innovation i) Efforts in brief and benefit derived. The above referred developmental work is helping the company in reducing per unit cost and developing new products which helps the company to increase its market share in the domestic as well as export market. 3. Imported Technology (imported during the last 5 years) Nil C. Foreign Exchange Earning and outgo: a) Activities relating to exports, initiatives taken in increase exports, development of new export market for products8 services and export plans. The company is presently exporting worsted yarn and fabrics. Steps are being taken to explore new markets and product development. b) Total Foreign Exchange earned and used. Current Year Previous Year (Rs. in lacs) (Rs. in lacs) Earned 105.24 141.48 Used 107.30 83.56