CHETAK SPINTEX LIMITED
ANNUAL REPORT 2003-2004
Your Directors have pleasure in presenting their Sixteenth Annual Report
together with the Audited Accounts of the Company for the year ended 31st
(Rs. in Lacs) (Rs. in Lacs)
Sales & Other Income 1968.95 1615.65
Profit before interest & Depreciation 239.23 202.53
Less: Interest 9376 9058
Profit before Depreciation 145.47 111.95
Less: Depreciation 119.63 88-6363
Less: Depriciation related to earlier years 0.99 _
Add: Excess Provision written back 0.01 0.15
Less: Expenses for earlier year 0.50 0.86
Profit before Taxation 24.36 22.61
Less: Provision for Taxation 2.00 1.82
Net Profit for the year after taxation 22.36 20.79
Less: Provision for Taxation
for earlier years 0.12 1.14
Net Profit after Tax 22.48 19.65
Add: Surplus of Profit and Loss
Account of earlier years 3502 4037
Profit Available for appropriation 57.51 60.02
Transfer to General Reserve 25.00 25.00
Transferred to Balance Sheet 32.51 35-02
WORKING DURING THE YEAR
The production of Synthetic Yarn during the year is 2336.47 M.T. as
compared to the previous year's production of 1870.31 M.T. during the
corresponding period. Thus, registering a positive increase of 25% over the
last year production.
Your Directors are pleased to inform the completion of the Expansion
Programme during the year with the completion of the proposed Expansion
Programme the company's production capacity is expected to improve
TURNOVER AND PROFITABILITY
The completion of the expansion Programme will make company's products more
competitive, which your directors' hope will improve, the profitability.
During the year turnover in terms of Rupees was 1908.94 lacs as compared to
Rs. 1557.81 lacs in the previous year.
The Company's brand "AMLON" continued to be acceptable in the market.
Company has accepted deposits after complying with the requirements of
section 58 A of the Companies Act, 1956.
Observations made in the Auditors Report are selfexplanatory and therefore
do not call for any further comments.
The equity shares of the Company are listed at Delhi Stock Exchanges.
However, in view of no trading in the fast three years, the members have
resolved to delist the shares from Ahmedabad, Jaipur & Mumbai Stock
Exchanges in the Fourteenth Annual General Meeting held on 27`1 September
DIRECTORS RESPONSIBILITY STATEMENT
Your Directors would like to confirm that:
I. In the preparation of the Annual Accounts, the applicable Accounting
Standards have been followed
II. The Directors have selected such Accounting Policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of the
Company at the end of the Financial Year and of the Profit of the company
for the period;
III. The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of the
Company and for preventing and detecting fraud and other irregularities;
IV. The Directors have prepared the Annual Accounts on a going concern
Sh. P.C. Saraff & Sh. emit Agarwal retires by rotation, being eligible
offers himself for reappointment.
M/s. Saluja & Associates, Chartered Accountant, New Delhi, held office
until the conclusion of ensuing Annual General Meeting and, being eligible.
offers themselves for reappointment, the appointment, if made, would be
within the prescribed limits under section 224 (1) of the Companies Act,
PARTICULARS OF EMPLOYEES
There is no employee in the Company drawing monthly remuneration of Rs.2.00
(two) lacs & above or Rs.24,00,000 (twenty-four) lacs and above in a year.
COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS)
Particulars with respect to conservation of energy Under Section 217 (1)
(e) of the Companies Act, 1956, read with the Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988 and forming
part of the Directors' Report for the year ended 31st March, 2004 are
annexed to this report as Annexure I.
The industrial relations during the year remain cordial and the Directors
wish to place on record their appreciation for the services rendered by the
Officers, Staff and Workers of the Company at all level.
The directors would like to express their appreciation for the assistance
and co-operation received from the various Departments of the Central and
State Government, H.S.I.D.C. and the Banks.
For and on behalf of the Board of Directors.
Place: Delhi (G.L. AGARWAL)
Date: 10.08.2004 CHAIRMAN
Annexure to Director's Report
The companies (Disclosure of particular in the Report of Directors) Rule,
A. CONSERVATION OF ENERGY
a. All the machinery used is subject to a strict repair and maintenance.
Further, the Maintenance Department has been instructed to take every
necessary step for Energy Conservation.
b. No Additional Investment has been made during the year for reduction of
consumption of energy.
B. TECHNOLOGY ABSORPTION
We are now using indigenously available PP chips and Master Batches as, two
of our principle raw materials, to the extent of 100%.
C FOREIGN EXCHANGE EARNING AND OUTGO
Particulars of Foreign Exchange earning and outgo are given in Schedule -
Q. Para-C- Notes on Accounts.
(Form for disclosure of particulars with respect to conservation of energy)
A. Power and Fuel Consumption
Electricity Current Previous
Unit (KWH) NIL NIL
Total Amount (Rs.) NIL NIL
Rate per Unit (Rs.) NIL NIL
B. Own Generation Through Diesel
Unit (KWH) 5557708.00 4823419.00
Total Cost (Rs.) 21728132.91 17632486.75
Units per Liter of Fuel 4.00 4.26
Cost per unit (Rs.) 3.91 3.65
C Consumption per Unit of Production
Unit KG KG.
Product Yarn Yarn
Electricity (KWH) NIL NIL
Fuel (Liters) 0.59 0.60
Management discussion and analysis
1. Industry scenario and development:
The Textile Industries continued to play an important role in the Indian
Economy recognizing this. The Government of India through its supportive
policies as time and again encourage to strengthen Textile Industries to
enable Up-gradation of Textile Product for indigenous use and export.
The tough policies of the Government to subsidies of 5%. The interest
payment by the Industries for the expansion, setting up of new plant
2. Company's Strength:
Your company has further taken adequate steps in achieving high levels of
production. The company has completed its expansion programme successfully
during the year which it is hoped will boost company's production capacity
substantially thus reduce cost of production and will make positive
contribution to the company's profitability in the years to come.
Your company's plant is checked at regular intervals for reliability and is
geared up to meet the challenges in future.
3. Risks and Concerns:
Your company perceives unfavorable and unclear Government policy as a major
risk that confronts your company.
Your company has been attempting to convert the various threats it
envisaged into opportunities.
4. Company subsidiary, related Projects, Allied Business:
The company has no subsidiary company.
5. Internal Control:
The company ensures existence of adequate internal control to be followed
by the executives at various level in the organization while operating
managers, ensure compliance within their areas,
6. Human Resources:
Your company's constant endeavor has been to attract, retain and nurture,
human potential by developing a culture of human values.
The purpose of human potential development is to bring in a sense of
belongingness and feeling of ownership.
Your company has during the previous year continued to have good relations
with its employees.
The report may contain certain statements that the company believes are or
may be considered to be "forward looking statements" that describes our
objectives, plans or goals. All these "forward looking statements" are
subject to certain risks and uncertainties, including but not limited to
government action, economic development, risks inherent in the company's
growth strategy and other materially from those contemplated by the
relevant "forward looking statements."