ARIHANT INDUSTRIES LIMITED
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
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 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.
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.
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.
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.
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
The properties of the company are adequately insured.
M/s. P.K Verma and Associates have been re-appointed to carry out the Cost
Audit for the year.
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.
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.
Chairman & Managing Director
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
viii) Various modifications and installations carried out in processing
machines like fixing separators, traps, PRV's term perature controllers
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
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