ANNUAL REPORT 2000-2001
HARIA EXPORTS LTD
ON THE EVE OF 31ST A.G.M. HELD AT REDG. OFFICE DT.31/08/2001.
On behalf of the management I take great pleasure to welcome you at the 31
t Annual General Meeting of the HARIA EXPORTS LTD. A lot has been written
in the recent past about the extended downturn in the businesses worldwide
and the extreme adversities faced by the Corporate world. The extraordinary
pace of global change will remain a reality in the future, affecting our
competitive environment in a permanent way. At Haria we will endeavour in
this increasingly competitive and fast-paced global economy, to adapt,
learn and respond, quickly to changing conditions.
FINANCIAL PERFORMANCE VIS A VIS BUSINESS ENVIRONMENT:
Your Company has fared better in the current year in comparision to the
previous year. Despite bearish conditions in the International market, the
export income and other income of the company amounted to Rs.106.96 crores
against Rs.87.90 crores last year. Net profit after tax amounted to Rs.2.48
crores against Rs.3.70 crores last year. The Paid-up capital of the
Company is Rs.4.10 crores and Reserves have increased to Rs.28.65 crores
from Rs.27.50 crores. The Book Value per share has gone up from Rs.66.58 to
Rs.69.56. The bottom line of the Company is effected due to earthquake in
Gujarat where one of the unit was located in K F T Z .The Company have
sufferred a loss of Rs,173 lakhs being damages to stock and Fixed Assets.
The Government of India has announced a Technology Upgradation Fund (T.U.F.
of Rs.25,000 crores for textile Industry in India out of which a corpus of
Rs.5000 crores has been reserved for the Garment Industry to combat the
competetion which may arise by year 2004 when quota and other restrictions
are removed and garment trade will become free all over the world. There
will be interest subsidy @ 5%, and hence the effective cost of borrowed
funds will not exceed 10%. Your Company is planning to avail the various
benefits and subsidies introduced by the Government for Plant modernization
and induction of advanced technologies. Your Company has started one more
100% E.O.U. unit at Vapi.
The Government has revised downward the duty drawback incentive structure
from 16% to 14 with a maximum cap of Rs.50/- per garment instead of Rs.65/-
per garment. Further downward levels are made for each variety of garments.
Effectively the reduction is not just 2% but it is more than 25%. This
will effect the bottom line of the industry and the exporters will find it
difficult to compete in the International market. Representatives have been
made to the Government to re-structure & put the duty drawback to its
original position. So also the 3% duty free licence benefits have been
withdrawn but after due representation the benefit was restored. Hopes are
kept on the duty drawback. incentive scheme.
Also the partial withdrawal of 100% tax benefit u/s 80HHC will affect the
bottom line of the
The present export senario for f y 2001-2002 is on downward turn. The
overall exports have reduced both in terms of quantity by 11.46% and 9.62
in the terms of dollars as compared to previous ear.
The exports figures to non quota country is also alarming. The downtrend is
to the extent of 43% ln qty terms and 46.5% in dollars terms. This negative
growth is worrying everyone and govt. should take bold economic measures to
reverse the trend.
Inspite of this the quarterly performance for the quarter ended on
30.6.2001 of the company is also good. The company achieved a turnover of
RS.16.76 cr as against rs.16.65 cr for previous year.
The members are requested to ask any question to clarify the doubts.
Kantilal L . Haria