| Your Directors are pleased to present their twelfth annual report
together with the audited accounts for the year ended 31st March,2001.
FiNAMCiAL RESULTS :
Your Company registered a decline in Sales from Rs. 214.94 lacs in
1999-2000 to Rs. 478.20 lacs in 2000-2001. The company incurred a net
loss of Rs. 5.13 lacs against loss of Rs. 3.32 lacs in 1999-2000.
DIVIDEND :
Since the company has not earned profits during the year, your
directors do not recommend any dividend for the year 2000-2001.
PERFORMANCE OFTHE COMPANY :
During the year, there was a steep increase in the electricity tariffs
and our industry being power intensive has resulted in erosion of
profits, other inputs like packing material, oil etc. has also become
costly and on the other hand the margins have shrunk due to
competition.
In order to survive in this situation, your company has completed five
years term as an Export oriented unit and now operating as a domestic
unit. The expectations from EOU sector were not fulfilled since Govt.
policies kept on changing and the promised benifits of EOU were delayed
and denied. Now the company is able to work in a more flexible manner
which will allow better utilisation of installed capacity. During the
year your company has expended production capacity by 50% by installing
one more texturising machine. This will result in better absorption of
fixed ovarheads and will improve the margins and by the end of this
fiscal year the company hopes to turn around and start generating
profits.
DIRECTORS :
Shri Mayank Devashrayee and Smt. Trupti Devashrayee are retiring by
rotation at the forthcoming Annual General Meeting and being eligible,
offer themselves for reappointment.
EMPLOYEES :
No employee was drawing remuneration in excess of the limits prescribed
under section 217(2A) of the Companies Act, 1956 is therefore not
furnished.
STATUTORY INFORMATION :
Statutory informations required under the Companies (Disclosure of
Particulars in the report of Board of Directors Rules, 1988) applicable
to the company and forming part of this Report are set out in Annexure
to this Report.
AUDITORS :
M/s P. J. Desai & Co., Chartered Accountants, Surat retire at the
forthcoming Annual General Meeting, and being eligible, offer
themselves for reappointment. Your Directors recommend their
reappointment.
ACKNOWLEDGEMENT :
Your Directors express their gratitude and sincere appreciation for the
continuous co-operation received from their Bankers, the commerce
ministry, and central excise and customs department and other Govt.,
agencies throughout during the year, and for the utmost faith reposed
by the investors and Shareholders in the Company. They also place on
record their sincere appreciation for the efforts put in by employees
of the Company at all levels.
For and on behalf of the Board
Place : Surat, G. P. Shah
Date : 3rd September, 2001. Chairman
Information pursuant Companies (Disclosure of Particulars in the Report
of Directors) Rules, 1988.
1. CONSERVATION OF ENERGY
A. Energy conservation measures taken :
1. Reducing the maximum demand by evenly distributing the loads
throughout the day and. increasing efficiency of plant and equipments.
2. Improving power factor by optimum choice of power factor improvement
capacitors.
B. Additional investments and proposal, if any being implemented for
reduction of consumption of energy : NIL
C. Impact of measures at (A) and (B) above for reduction of energy
consumption and consequent impact on the cost of production of goods :
NOT APPLICABLE
2. TECHNOLOGY ABSORPTION
E. Efforts made in technology absorption: NOT APPLICABLE
3. FOREIGN EXCHANGE EARNING/OUTGO
Earning Rs. 1,13,91,842 (Deemed Export)
Outgo Rs. 6,78,751
F. Activities relating to exports, initiatives taken to exports,
development of new export markets for products and service and export
plan.
The Company is a 100% Export Oriented Unit upto 18-10-2000.
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