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Eskay K`nIT (India) Ltd.

BSE: 514118 Sector: Industrials
NSE: SHREEKRPET ISIN Code: INE220A01032
BSE LIVE 15:14 | 31 Jul Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 0.25
PREVIOUS CLOSE 0.26
VOLUME 1553
52-Week high 0.38
52-Week low 0.21
P/E
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.25
Sell Qty 3447.00
OPEN 0.25
CLOSE 0.26
VOLUME 1553
52-Week high 0.38
52-Week low 0.21
P/E
Mkt Cap.(Rs cr) 7
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.25
Sell Qty 3447.00

Eskay K`nIT (India) Ltd. (SHREEKRPET) - Director Report

Company director report

ESKAY K'N'IT (INDIA) LIMITED ANNUAL REPORT 2011-2012 DIRECTOR'S REPORT To, THE SHAREHOLDERS, The Board of Directors hereby presents the 25th Annual Report on the business and operations of your Company along with the Audited Statements of Accounts for the Financial Year ended 31st March, 2012. FINANCIAL HIGHLIGHTS: Particulars 2011-12 2010-11 (Rs. in Lacs) (Rs. in Lacs) Revenue from operations 1,05,153.42 93,015.07 Finance Cost 4,960.97 3,943.67 Depreciation and amortization Expense 8,179.22 7,855.16 Profit/(Loss) before exceptional and extraordinary items and tax (6,329.59) 31.65 Exceptional items - - Extraordinary items - - Profit/(Loss) before tax (6,329.59) 31.65 Deferred Tax Assets 703.45 619.87 Provision for Taxation 0.00 6.31 Net Profit/(Loss) (5,626.14) 645.21 DIVIDEND: In view of Loss of the Current year, your Directors are unable to recommend any dividend on the equity shares for the year under review. REVIEW OF OPERATIONS: During the year, the Revenue from operations of the Company has substantially increased to Rs. 1,05,153.42 Lacs as against Rs. 93,015.07 Lacs in respect of the previous Financial Year ended 31st March, 2011, registering a growth of around 13% over the previous Financial Year. The Company has suffered Loss before Tax Rs. 6,329.59 Lacs in the financial year ended 31st March, 2012 as against profit of Rs. 31.65 Lacs in the previous financial year ended 31st March, 2011. The Company has Net Loss of Rs. 5,626.14 Lacs after considering deferred tax of Rs. 703.45 Lacs as against Net Profit of Rs. 645.21 Lacs in the previous financial year ended 31st March, 2011. However, there is no cash loss during the year. CORPORATE DEBT RESTRUCTURING: The Company has entered into the scheme of Debt Restructuring with the present Consortium Lenders, as the Company has suffered huge losses during the current year on account of volatility in the cotton prices, increase in power cost and heavy burden of Rate of Interest (Interest Rate increased from 11-12% to 15-17%) and the proposal for the same has been duly filed with Corporate Debt Restructuring Cell. DIRECTORS: In accordance with the provisions of the Companies Act, 1956 and Articles of Association of the Company, Shri Mahesh Prasad Mehrotra and Shri Naresh Chandra Sharma, Directors of the Company, retire by rotation and being eligible, have offered themselves for re-appointment. During the year, Ms. Mrinal Tayal, has resigned from the Directorship of the Company w.e.f. 1st November, 2011. The Board of Directors place on record the valuable services rendered by her and Contribution made by her during her tenure as a Director, in the growth of the Company. DIRECTORS' RESPONSIBILITY STATEMENT: Pursuant to requirement under Section 217(2AA) of the Companies Act, 1956 with respect to Director's Responsibilities Statement, it is hereby confirmed: (i) That in the preparation of the annual accounts for the financial year ended 31st March 2012, the applicable Accounting Standards had been followed along with proper explanation relating to material departures; (ii) That the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that were 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 statement of Profit or Loss of the Company for the year under review; (iii) That the Directors had 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 frauds and other irregularities; (iv) That the Directors had prepared the accounts for the financial year ended 31st March 2012 on a 'going concern basis'. (v) That the accounts have been prepared on the basis of Revised Schedule VI to the Companies Act. Accordingly the previous years figures have adjusted/regrouped/rearranged to confirm with the current year figures. AUDIT COMMITTEE: The composition of Audit Committee is in accordance with the clause 49 of the Listing Agreement and the detailed information is given in the Report on Corporate Governance. SHARE TRANSFER AND INVESTOR GRIEVANCES COMMITTEE: The composition of Shareholders'/Investor Grievance Committee is as given in the Report on Corporate Governance. REPORT ON CORPORATE GOVERNANCE: Pursuant to Clause 49 of the Listing Agreement with the Stock Exchanges, a Management Discussion and Analysis Report and a Corporate Governance Report are made as a part of this Annual Report. A Certificate from M/s. A. F. Khasgiwala, Practicing Chartered Accountants regarding compliance of the conditions of Corporate Governance as stipulated by Clause 49 of the Listing Agreement is attached to this report. SAFETY, HEALTH AND ENVIRONMENT: Sustained and meticulous efforts continue to be exercised by the Company at all plants of the Company, towards greener production and environment conservation. The Company perseveres in its efforts to indoctrinate safe and environmentally accountable behaviour in every employee, as well as vendors, by rigid compulsory annual training and refresher courses, as well as frequent awareness programme. Mock drills of emergency preparedness are regularly conducted at all the plants showing Company's commitment towards safety, not only of its own men and plants, but also of the society at large. Safety records, at all plants showed considerable improvement and accident statistics showed downward trend. This was made possible by strict adherence to laid down procedures and following of international guidelines. Involvement of workers in all safety matters has been encouraged by their participation in shop floor safety meetings. To achieve the goals, environment protection systems and processes are well in place. To meet the challenge of environment protection in a proactive manner, unavoidable wastes are dealt with in the most efficient and scientific way. The health of employees and the environment in and around the Plant area have been given due care and attention. The Company continued to comply with the prescribed industrial safety environment protection and pollution control regulation at its production plant, through periodic checks of the system involved and constant monitoring to meet the standards set by the pollution control authorities, etc. All the mills of the Company are eco- friendly and do not generate any harmful effluents. They have facilities for captive power generation as a stand-by arrangement, to meet any contingency. Safety devices have been installed wherever necessary, although both the spinning and knitting activities are known to be quite safe and free from usual hazards of water and air pollution. INDUSTRIAL RELATIONS & HUMAN RESOURCES MANAGEMENT: The Company is of firm belief that good Human Resource Management would ensure success through high performance. HR strategy and plans of the Company are deeply embedded with the organizational goals. In order to enhance the manpower productivity the goal is set to increase the production capacity of the various plants and rationalize the manpower through scientific study. All the operational goals of the top management emanate from the business plan. The goals of MD are shared with his subordinates who in turn share their goal with their respective subordinates and so on. Regular visits by HR team are being made to all the plants to meet the employees and also interaction meetings are conducted to get their feed back, based on which HR policies are improved continuously. The process has resulted in better employee relationship. The Company lays due emphasis on all round development of its human resource. Hence training of the employees is aimed at systematic development of knowledge, skills, aptitude and team work. Training is designed for the development of personal skills necessary for the performance of the present job and to prepare them for future growth. Individual development is given top priority to groom high caliber manpower. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO: Information in accordance with the provisions of 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, regarding conservation of energy, technology absorption and foreign exchange earnings and outgo are given in the Annexure forming part of this Report. CORPORATE SOCIAL RESPONSIBILITY: The Company, in keeping with its Corporate Social Responsibility policy, focuses on healthcare, education, and other social initiatives. We continue to strive for sustainability in our operations by promoting the integration of CSR into our business strategy as well as our everyday functioning. During the year under review, we focused on providing residence to our labourers along with school & educational facilities to their children and also maintaining consistent duty towards fellow employees of our organisation. EMPLOYEES: The Directors are happy to state that the relations between the Company and its Employee remained cordial throughout the year. The Directors acknowledge and express their appreciation for the contributions made by the employees at all levels. Focused attention was given for knowledge updating and application of new technologies available to reduce costs and to meet the business challenges. None of the employees drew remuneration of Rs. 60,00,000/- or more per annum/Rs. 5,00,000/- or more per month during the year. This information is furnished as required under Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975. FIXED DEPOSITS: The Company has not invited/received any Fixed Deposits from the Public during the year under report. INSURANCE: The properties/assets of your Company are adequately insured. COST AUDIT: The Central Government's Cost Audit Committee Order specifies audit of Cost Accounting Records for certain products of the company every year. The Board of Directors, subject to the approval of the Central Government, have appointed M/s J. K. Kabra & Co., Cost Accountants, as Cost Auditors to carry out this audit in respect of manufacture of textile products for the year ending 31st March 2012. AUDITORS: M/s. A. F. Khasgiwala & Co., Chartered Accountants, the Statutory Auditor of the Company, hold office till the conclusion of the ensuing Annual General Meeting and are being eligible for re-appointment. The Company has received a letter from M/s. A. F. Khasgiwala & Co. to the effect that their re-appointment as Statutory Auditors, if made, would be within the limits under Section 224(1B) of the Companies Act, 1956. ACKNOWLEDGEMENT: The Directors have pleasure in recording their appreciation of the assistance, co-operation and support extended to your Company by the shareholders, all Government Authorities, Financial Institutions, Banks, Consultants, Solicitors, Customers. By the order of the Board of Directors Sd/- Place: Mumbai Navin Kumar Tayal Date : 27th April, 2012 Chairman ANNEXURE TO THE DIRECTORS' REPORT: Information as per Section 217(1)(e) of the Companies Act, 1956, read with Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 and forming part of the Directors' Report for the year 2011- 2012: I. CONSERVATION OF ENERGY: a) Energy conservation measures taken: The Company has been making concerted efforts for enhancement in capacity utilization, cost competitiveness and quality through systematic process monitoring and adherence to technological norms. Sophisticated instruments are used for regulation and adjustment as per parameters. Efforts are also made for up gradation of the quality of the Plant Operation. Utilities are being combined for effective energy conservation. b) Additional Investments and Proposals being implemented for reduction of consumption of energy: Studies are being made to reduce energy consumption and make suitable investments in this area, if necessary. c) Impact of the measures (a) & (b) above for reduction of energy consumption and consequential impact on the cost of production of goods: The Company has economized considerably the cost of power despite steep hike in the tariffs and is constantly exploring avenues for cost saving as an on-going process. Total energy consumption and energy consumption per unit of production in accordance with Form 'A' of the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, in respect of Industries specified in the Schedule thereof: Year ended Year ended 31.03.2012 31.03.2011 A. Power and Fuel Consumption: 1. Electricity (a) Purchased 1. Units (KWH in Lacs) 369.24 178.08 2. Total Amount (Rs. in Lacs) 2259.78 731.32 3. Rate/Unit (Rs.) 6.12 4.25 (b) Own Generation (through Diesel Generator/Furnace Oil/Gas) 1. Units (KWH in Lacs) 471.68 885.95 2. Units per Liter of fuel 3.80 3.77 3. Cost per unit (Rs.) 11.01 6.57 2. Coal - - 3. Furnace Oil - - 4. Others/Internal Generation/Steam - - B. Consumption per unit of production (Product: Yarn & Fabric) 1. Electricity (KWH per tone) 4238.00 2035.52 2. Coal (Kgs.) - - 3. Furnace Oil (Ltrs.) - - 4. Steam (Tones) - - Note: Since the Company manufactures different qualities of fabrics/yarns with product-mix changing significantly, there are no specific norms for per unit of production. II. TECHNOLOGY ABSORPTION: Efforts made in technology absorption in prescribed Form 'B': 1. Research and Development (R & D) a) Specified areas in which R & D : R & D activities are being carried out by the Company continuously activities are carried out by the Company to produce better quality of yarn and fabrics. b) Benefits derived as a result of : As a result of R & D activities, the the above Company has been able to produce quality yarn and fabrics conforming to international standards. c) Future Plan of Action : Efforts aimed at cost reduction, improvement in quality of products and development of new process will continue. d) Expenditure on R & D : Expenditure on R & D is being booked under the respective heads in the Profit & Loss Account as no separate account is maintained. 2. Technology Absorption, Adaption : The Company has not utilized any and Innovation imported technology. III. FOREIGN EXCHANGE EARNINGS AND OUTGO: a) Activities relating to export : The Company is exploring avenues to Markets for products and services export its premium quality yarns. and export plan (2011-12) (2010-11) b) Foreign Exchange Outgo (Rs. in Lacs) - - c) Foreign Exchange earned (Rs. in Lacs) - - For and on Behalf of the Board of Directors Sd/- Place: Mumbai Navin Kumar Tayal Date : 27th April, 2012 Chairman MANAGEMENT DISCUSSION AND ANALYSIS The Management of ESKAY K'n'IT (INDIA) LIMITED presents its Analysis report covering performance and outlook of the Company. The Report has been prepared in compliance with the requirement of Corporate Governance as laid down in the Listing Agreement. The Management accepts responsibility for the integrity and objectivity of the financial statements. However, investors and readers are cautioned that this discussion contains certain forward looking Statements that involve risk and uncertainties. INDUSTRY STRUCTURE AND DEVELOPMENTS: TEXTILE INDUSTRY:- The Textile Industry occupies a unique place in our Country by contributing around 4% of India's GDP, 14% of the Country's Industrial Production, 18% of Industrial employment and 17% of the export earnings. It is the second largest provider of employment after agriculture. It provides direct employment to over 35 million people and indirect employment to around another 60 million people in the Country. The Industry contributes around 25% share in the world trade of cotton yarn. India is the largest exporter of yarn in the international market and has a share of 25% in world cotton yarn export market. India contributes for 12% of the world's production of textile fibers and yarn. Indian textile industry is second largest after China in terms of spindlage, and has share of 23% of the world's spindle capacity. India has around 6% of global rotor capacity. The industry is expected to grow from the present US$ 70 billion to US$ 220 billion by 2020; India's textile export is expected to reach US$ 25 billion by 2013. The availability of concessional loans under the Technology Upgradation Fund Scheme (TUFs) and growing demand for Value Added lifestyle-driven retail products are other contributing factors which encourage new investment in up gradation of machineries. India has the potential to increase its textile and apparel share in the world trade from the current level of 4.5 per cent to 8 per cent and reach US$ 80 billion by 2020. - Cotton: India is the second largest producer of cotton in the world. The International Cotton Advisory Committee (ICAC) noted that India has produced 4.74 metric tones (MT) of cotton during the year. India's production next season is likely to touch 5.61 MT. Cotton is the predominant fabric used in the Indian industry, accounting for nearly 60 per cent of production. The average yield of cotton per hectare in Indian is about 400 kilograms which is considered low. During the year India produced total 32 million bales, out of which 10.5 million has been produced in Gujarat. - Spinning: The Spinning Industry in India is on set to hit the global market with its enthusiasm and consistency in work. The spinning sector in India is globally competitive in terms of variety, process and production quantity. It has already reached a phenomenal status in India by beating the obstacles that caused a downfall since past few years and is now on its way to cover a wider area in the spinning sector. India has about 40 million spindles (23 per cent of the world). - Knitting: Weaving and knitting converts cotton, manmade, or blended yarns into woven or knitted fabrics. India's weaving and knitting sector remains highly fragmented, small-scale, and labour intensive. This sector consists of about 3.9 million handlooms, 380,000 power loom enterprises that operate about 1.7 million looms, and just 137,000 looms in the various composite mills. Power looms are small firms, with an average loom capacity of four to five owned by independent entrepreneurs or weavers. Modern shuttleless looms account for less than 1 percent of loom capacity. Knitting units are successful in export channels. Some of the prominent weaving/knitting clusters include Tirupur in Tamil Nadu and Ludhiana in Punjab. i) OPPORTUNITY AND THREATS: The textile industry is undergoing a major reorientation towards non- clothing applications of textiles, known as technical textiles, which are growing roughly at twice rate of textiles for clothing applications and now account for more than half of total textile production. Technical textiles segment is expected to employ over 3,00,000 additional workers increasing the total employment to 1.2 million by 2012. The Government of India has set up 4 Centres of Excellence for Meditech, Agrotech, Geotech and Protech group of technical textile providing one-stop facility for testing, human resource development and research and development. The present global economic scenario provides ample opportunities for strong integrated textile companies such as like your company. Over the years the Company has built up capacities of scale by installing state-of- art production facilities. By reinforcing its position across the value change and presenting customers with diversified range of products, the company has developed sustainable business model with strength and resilience to combat any down turn in demand. Strengths: * Self reliant industry producing the entire supply-chain i.e., cotton and fibres. * Highly competitive spinning sector. * Large and growing domestic market. * Second-largest textile producer in the world. * Abundant Raw Material availability that helps industry to control costs and reduces the lead-time across the operation; * Low labour cost and availability of skilled and technical labour force. * Excellence in fabric and garment designing. * Vast textile production capacity and efficient multi-fiber raw material manufacturing capacity. * Availability of large varieties of cotton fiber and has a fast growing synthetic fiber industry; * Promising export potential Weaknesses: * Small size and technologically outdated plants result in lack of economies scale, low productivity and week quality control. * Cotton availability is vulnerable to erratic monsoon and low per hectare yield. * With the exception of spinning, other sectors are fragmented. Sectors such as knitted garments still remaining as a SSI domain * Labour laws and policies lack reforms. * Infrastructure bottlenecks for handling large volumes. * India lacks in trade pact memberships, which leads to restricted access to the other major markets. * Huge unorganized and decentralized sector. Opportunities: * End of quota system and full integration of the textile industry. * Low per-capita consumption of textile indicating significant potential growth. * Increased use of CAD to develop designing capabilities and for developing greater options. * Shift in domestic market towards readymade garments, and domestic textile consumption increasing with growing disposable income. * Cheaper production and marketing costs and enormous opportunities have tempted Taiwanese Companies to work on Joint Ventures with the Indian Companies specially for the manufacture of manmade fabrics. Threats: * Survival of the fittest-in term of quality, size delivery and cost. There is an increased global competition in the post 2005 trade regime under WTO. * Pricing pressures. * Stiff competition from other Asian countries. * Increase in regional trade could reduce share of market opened for India, China and other countries. * High production cost with respect to other Asian competitors. ii) GOVERNMENT INITIATIVES: The Government of India has promoted a number of export promotion policies for the textile sector in Union Budget 2011-12 and Foreign Trade Policy 2009-14. This also includes the various incentives under Focus Market Scheme and Focus Product Scheme; broad basing the coverage of Market Linked Focus Product Scheme for textile products and extension of Market Linked Focus Product Scheme etc. to increase the Indian Shares in the global trade of textiles and clothing. The various Schemes and promotions by the Government of India are as follows: 1. It has allowed 100 per cent Foreign Direct Investment (FDI) in textiles under the automatic route. 2. Welfare Scheme: The Government has offered health insurance coverage and life insurance coverage to 161.10 million weavers and ancillary workers under the Handloom Weavers' Comprehensive Welfare Scheme, while 7,33,000 artisans were provided health coverage under the Rajiv Gandhi Shilpi Swasthya Bima Yojna. 3. E-Marketing: The Central Cottage Industries Corporation of India (CCIC), and the Handicrafts and Handlooms Export Corporation of India (HHEC) have developed number of e-marketing platforms to simplify marketing issues. Also, a number of marketing initiatives have been taken up to promote niche handloom and handicraft products with the help of 600 events all over the country. 4. Skill Development: As per the 12th Five Year Plan, the Integrated Skill Development Scheme aims to train over 26,75,000 people within next 5 years (this would cover over 2,70,000 people during the first two years and remaining in next three years). This scheme would cover all sub sectors of the textile sector such as Textiles and Apparel; Handicrafts; Handlooms; jute; and Sericulture. 5. Credit Linkages: As per the Credit Guarantee program, over 25,000 Artisan Credit Cards have been supplied to artisans, and 16.50 million additional applications for issuing credit cards have been forwarded to banks for further consideration with regards to the Credit Linkage scheme. 6. Financial package for waiver of over dues: The Government of India has announced a package of US$ 604.56 million to waive overdue loans in the handloom sector. This also includes the waiver of overdue loans and interest till 31st March, 2010, for loans disbursed to handloom sector. This is expected to benefit at least 3,00,000 handloom weavers of the industry and 15,000 cooperative societies. 7. Textile Parks: The Indian Government has given approval to 40 new Textile Parks to be set up and this would be executed over a period of 36 months. The new Textile Parks would leverage employment to 4,00,000 textile workers. The product mix in this parks would include apparels and garment parks, hosiery parks, silk parks, processing parks, technical textiles including medical textiles, carpet and power loom parks. iii) AREA OF CONCERNS: The major areas of concerns are however as follows: 1. Certain Regional trade blocks and trade agreements can change competitive parameters. 2. Enhancement of Preferential Access Programme for select countries. For instance, under the new GSP scheme, formulated by the EU, India's textile sector has been graduated while those from Pakistan and other countries (excluding China) have been included. 3. Evolution of Non Tariff Barriers in the form of packaging/labelling requirements, customs and other formalities; environmental safeguards, sanitary and phyto-sanitary measures. 4. The developed countries continue to seek quantitative restrictions on textiles and clothing. Their imports show that quotas are still being used as an instrument of restraining growth. The recent settlement arrived at by the European Commission under intense domestic pressure undermines the free play of market forces. iv) OUTLOOK: The Company has suffered huge losses during the current year on account of volatility in the cotton prices, increase in power cost and heavy burden of Rate of Interest (Interest Rate increased from 11-12% to 15-17%) and therefore, the Company has entered into the scheme of Corporate Debt Restructuring with the present Consortium Lenders and the proposal for the same has been duly filed with Corporate Debt Restructuring Cell. v) RISK AND CONCERN: There are no major risk and concern to the Company's operation except from the competitive pricing pressure from cheaper imports, unethical competitions from sick units, free market policies and removal of quantitative restrictions. vi) INTERNAL CONTROL SYSTEM: The Company has been marinating a well-established procedure for internal control system. For the purpose financial control, Company is adequately staffed with experienced and qualified personnel at all levels and play an important role in implementing and monitoring the statutory and Internal policy control environment. There has been a review conducted by M/s. B. James & Co., the Internal Auditor, about the financial and operating controls. The Audit Committee of the Company reviews the adequacy of internal audit functions. vii) FINANCIAL PERFORMANCE VS. OPERATIONAL PERFORMANCE: During the year, the Turnover of Company has substantially increased to Rs.105,153.42 Lacs as against Rs. 93,015.07 Lacs in respect of the previous Financial Year ended 31st March, 2011, registering a growth of around 13% over the previous Financial Year. The Loss before Tax is Rs. 6,329.59 Lacs in the financial year ended 31st March, 2012 as against profit of Rs. 31.65 Lacs in the previous financial year ended 31st March, 2011. The Company has Net Loss of Rs. 5,624.14 Lacs after considering deferred tax of Rs. 703.45 Lacs as against Net Profit of Rs. 645.21 Lacs in the previous financial year ended 31st March, 2011. viii) DEVELOPMENT IN HUMAN RESOURCES/INDUSTRIAL RELATION FRONT: As part of HR-initiatives, thrust is given for Leadership Development to meet the aspirations and long-term goals of the Company. The Company has also laid qualitative objectives to maximize overall growth. Emphasis was placed on building a cohesive workforce to maximize returns to all stakeholders. Focused attention was given for knowledge updating and application of new technologies available to reduce costs and to meet the business challenges. The focus of Human resource is on building and developing intellectual capital through innovative ideas. The industrial relation climate of the Company continues to remain harmonious with focus on quality and safety. ix) RESEARCH AND DEVELOPMENT: Increased globalization has made the marketing of products and retention of customers highly competitive. The need of the hour is total customer satisfaction and value for money from the products marketed. Keeping this objective as paramount, the research and development activities were focused into prompt attention to major customer complaints/suggestions in order to retain/enhance customer satisfaction. The Company has started launching products of better quality and new look as per customer requirements. x) CAUTIONARY STATEMENT: Statements Made in this Report may be 'forward looking statements' within the meaning of applicable securities laws and regulations. These statements are based on certain assumptions and expectations of the future events that are subject to risks and uncertainties. Actual future results and trend may differ materially from historical results, depending on variety of factors like changes in economic conditions affecting demand/supply, price conditions in which the Company operates, Government regulations, tax laws and other statutes and incidental factors.