kongarar integrated fibres ltd Directors report

KONGARAR INTEGRATED FIBRES LIMITED Annual Report 1999 - 2000 Directors Report to the Members Your Directors are pleased to present the Eighth Annual Report along with the Audited Accounts of the Company for the Accounting year ended 31st March 2000. I. EVALUATION OF PERFORMANCE: During the year, the Company continued to trail its bad phase of textile depression. The sale turnover during the year was Rs. 1208.95 lakhs as against Rs. 1650.07 lakhs achieved during last year. The loss from operation before charging interest and depreciation was Rs. 190.40 lakhs as against the corresponding loss for the previous year of Rs. 202.64 lakhs. Paucity of working Capital had resulted in interrupted production, resulting in lower capacity utilisation of the installed capacity. Factors such as huge hike in power and fuel cost, higher raw materials cost and paucity of working capital are the other major reasons for the loss. II. FUTURE OUT LOOK Your Company has streamlined the production and through marketing tie-up has strengthened its position on All India basis. The product mix is stabilised to suit to the market needs: In the proposed Rehabilitation Scheme, Canara Bank has agreed to infuse in working capital which will help to streamline production. The improvements expected in Textile, Industry is yet to gain its momentum, though the positive signs of recovery are very bright. III. STATUS WITH THE HONBLE BIFR Your Company had submitted a fully tied-up Financial Rehabilitation Scheme in accordance to the directives of Honble BIFR to the Operating Agency - ICICI, Coimbatore. Consensus has been arrived among the major financial Institutions and the Bankers in formulating the revival scheme. The Scheme is expected to be finalised by Honble BIFR and the Draft Rehabilitation Scheme is anticipated to be circulated in a shorter period. IV. EXPORTS: During the year your Company exported to the tune of Rs. 311.86 lakhs as against Rs. 330.10 lakhs during the previous year. Despite worldwide economic crisis, we could almost maintain our export level due to our sustained efforts. V. DIVIDEND: The directors have not recommended any dividend to Equity Shareholders since the company has suffered loss during the year under review. VI. DIRECTORS: Pursuant to the provisions of the Companies Act, 1956, Sri. D. Selvaraj, Director is retiring by rotation at the ensuing Annual General Meeting and being eligible offers himself for re-appointment. VII. FIXED DEPOSITS: The Company does not have any Fixed Deposit as on 31-03-2000. VIII. AUDITORS: The Auditors M/s. M.S. Jagannathan & Visvanathan, Chartered Accountants, retire at the Annual General Meeting and they are eligible for re- appointment. IX. PERSONNEL Since there is no employee drawing more than Rs. 6,00,000/- as salary during the year, furnishing details under Section 217(2A) does not arise. X. DISCLOSURE OF PARTICULARS PURSUANT TO SECTION 217(1)(E) OF THE COMPANIES ACT, 1956: Information Pursuant to Sec. 217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1998, is given in the Annexure. 11. ACKNOWLEDGEMENT: Your Directors record their sincere thanks to our Bankers, viz Canara Bank, for their valued support. The Directors are acknowledge and record with gratefulness to ICICI, IDBI and other Non banking financial companies for their continued support in the revival of our company. We wish to mention and thank our shareholders, debenture holders, creditors, Depositors, Trade Unions and the labourers for their continued patronage. By order of the Board For KONGARAR INTEGRATED FIBRES LIMITED Place: Coimbatore (Sd) G. VENKATARAMAN Date: 17-8-2000 Director Annexure to the Directors Report FORM - A Disclosure of particulars with respect to: A: Research and Development (R & D) The Company has no separate R & D Department. The Company is a member of South India Textile Research Association (SITRA) who communicates the latest information on the Research carried out by them. B. Absorption of Technology Does not arise in the case of our Company. C: Foreign Exchange earnings and Out-go: The company has been consistently exporting its products. The Foreign exchange earned from 01.04.1999 to 31.03.2000 on account of yarn sales is Rs. 311.86 lacs. The Foreign Exchange expenditure incurred on account of travelling and sale promotion expenses Rs. 6.56 lacs and outgo on account of Raw Material Rs. 57.37 lacs. By order of the Board For KONGARAR INTEGRATED FIBRES LIMITED Place: Coimbatore (Sd) G. VENKATARAMAN Date: 17-8-2000 Director