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Hisar Spinning Mills Ltd.

BSE: 521068 Sector: Industrials
NSE: N.A. ISIN Code: INE689E01014
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VOLUME 200
52-Week high 10.65
52-Week low 5.80
P/E 3.41
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 9.00
CLOSE 9.00
VOLUME 200
52-Week high 10.65
52-Week low 5.80
P/E 3.41
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Hisar Spinning Mills Ltd. (HISARSPGMILLS) - Director Report

Company director report

DIRECTOR

To the Members

Your Directors have great pleasure in presenting the 20th Annual Report together withthe Audited Statement of Accounts of your Company for the year ended 31st March, 2012.

FINANCIAL RESULTS :

(Rs. in Lacs)

Current Year Previous Year
(2011-2012) (2010-2011)
Sales & Other Income 1505.14 1311.11
Profit Before Interest & Depreciation 158.71 124.54
Less Interest & Financial Exp. 33.90 16.61
Less Depreciation 79.87 43.49
Profit Before Exceptional & Prior Period Items 44.94 64.44
Exceptional Items 7.39 -
Prior Period Items 0.90 --
Profit Before Tax 53.23 64.44
Provision for Tax 10.14 11.99
Profit After Tax 43.09 52.45

PAST PERFORMANCE

The Turnover of the Company has increased by 14% as compared to previous year. Theprofit before tax is however less by 18%. It is due to heavy Interest & Depreciation.The company expects even better results in the ensuing year.

MANAGEMENT DISCUSSION & ANALYSIS

The Spinning Yarn Industry is a lifeline in Textile Business of India. The majority ofemployment in India is absorbed by Textile Industry. Keeping in view of its importance theGovt, has constituted a separate Department under Textile Ministry. The Govt, has alsoconstituted a Technology upgradation Fund (TUF) by which concessional Loan/subsidy isgranted by Govt, through its various nodal agencies for upgradation in technology.

The Govt, of India has abolished the Quota Regime in Textile Sector which has generatedfurther demand of the product in International as well as National Market, which willcertainly improve the profitability of company.

The main Raw Material is cotton/cotton waste, which is based on Agricultural productionof Cotton. The production is dependent on Monsoon. In Indian climatic condition themonsoon is always an unpredictable factor. Sometimes there is heavy rainfall &sometime the drought situation is created, which affects the production of Cotton to agreat extent creating heavy fluctuation in raw material prices. However, the company couldmaintain the balance in such a situation & earned profit during the year.

In a high competitive market any company may compete by improving the quality of the ofmaterial it sold and by lowering the cost so to achieve this target he company has changedits new preparatory machine e.g. Blowroom & Cards to improve the quality of yarn. Alsothe company has installed machine for Regeneration of cotton waste to lower the cost ofraw material. The management is assured that by taking these steps all the shareholderswill definitely gain in future.

PARTICULARS OF EMPLOYEES

During the year there was no employee in respect of whom information as per section 217(2A) of the Companies Act, 1956 is required to be given in the director's report.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO :

As required by the companies (Disclosure of particulars in the report of Board ofDirectors) Rules, 1988 the relevant data pertaining to conservation of energy, technologyabsorption and foreign exchange earning and outgo are given in annexure forming part ofthis report.

FIXED DEPOSIT:

The company has not accepted any deposit within the meaning of section 58-A of thecompanies Act, 1956, and the Companies (Acceptance of Deposits) Rules, 1975.

LISTING OF SECURITIES:

The Securities of the Company is listed on Stock Exchange at Mumbai. The Listing Feeshave been paid up to 31.03.2012.

INSURANCE:

All the properties and insurable interests of the company including Building, Plant& Machinery and Stock wherever necessary and to the extent required have been properlyinsured.

AUDITORS REPORT

The points stated in the Auditors Report are self explanatory & needs no comments.

DIRECTORS

In accordance with the requirement of the Companies Act, 1956 and the Articles ofAssociation of the Company Sh.T.N.Goel & Sh.Anurag Gupta retires by rotation and beingeligible offer themselves for re-appointment.

CORPORATE GOVERNANCE

The Corporate Governance Report is annexed herewith along with Auditor's Certificate.

AUDITORS

The term of present Auditors of the.-company M/s. Jain & Anil Sood, CharteredAccountants, Ludhiana expires at the conclusion of the ensuing Annual General Meeting andthey are eligible for reappointment.

DIRECTORS RESPONSIBILITY STATEMENT

(i) That in the preparation of the annual accounts, the applicable accounting standardshad been followed.

(ii) That the directors had selected such accounting policies and applied themconsistently and made judgment and estimates that are reasonable and prudent so as to givea true and fair view of the state of affairs of the company at the end of the financialyear and of the Profit of the company for that year:

(iii) That the directors had taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of this Act for safeguardingthe assets of the company and for preventing and detecting fraud and other irregularities:

(iv) That the directors had prepared the annual accounts on a going concern basis.

Acknowledgement:

Yours Directors express their sincere appreciation for all around assistance,cooperation and guidance from the Lenders Punjab National Bank, Small IndustriesDevelopment Bank of India (SIDBI) and State & Central Govt. Authorities.

Place: Chandigarh For and On Behalf of the Board
Dated : 30.08.2012 (T.N. Goel) (Gopal Krishan Gupta)
Director Managing Director

ANNEXURE TO THE DIRECTORS REPORT

The Companies (Disclosure of particulars in the Report of Board of Directors) Rules,1988 under Section 217(1) (e) of the Companies Act, 1956.

A. CONSERVATION OF ENERGY :

(i) Power factor has been maintained above 0.9 by proper choice of capacitors as perthe requirement of load.

(ii) Motors have been installed of optimum capacity.

(iii) Power load is distributed on D.G. Sets at optimum level.

B. T ECHNOLOGY ABSORPTION : NIL

C. FOREIGN EXCHANGE EARNINGS AND OUTGO:

Foreign Exchange used : 12754482
Foreign Exchange earned 3169512

FORM - A

DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY

Current Year (2011-2012) Previous Year (2010-2011)
A) Power & Fuel Consumption:
1. Power
a. Purchased
i) Units (KWH 2718018 2958770
ii) Total Amount (Rs.) 14086016 14957936
iii) Rate/Unit Rs. KWH 5.18 5.06
b. Through Diesel Generator
i) Units (KWH) 125300 143500
ii) Total Amount 1371303 1448223
iii) Cost/Unit 10.94 10.09
Steam Coal NIL NIL
Furnace Oil NIL NIL
Others/Internal Generators NIL NIL
2. Fuel NIL NIL
B) Consumption Per Unit of Production
Cotton Yam / M.T. 1342 Units 1342 Units