KARNAVATI SPINNERS LTD
Your Directors have pleasure in submitting ninth Annual Report and Audited
Accounts of your Company for the year ended on 31st March, 1998.
REVIEW OF WORKING:
In view of recessionary trend in the industry, the turnover of the Company
is reduced by about 10% over previous year. Further more, t interest
expenses and other overheads increased sharply making the loss before
depreciation to Rs. 183.91 lacs and after providing f depreciation of Rs.
26.21 lacs, the total loss comes to Rs. 210.12 lacs.
FUTURE OUT LOOK:
Due to technical problem in the machinery, the plant of the Company was
shutdown for the period commencing from 22.4.89 to 22.5.98 a thereafter
since 22.8.98. In the opinion of the management, this machine is to be
replaced by new one and this requires some capital outlay of Rs. 125 lacs
For this, the Company has approached to the financial institutions / banks
and on prima facie discussion with them, the Company has receive positive
sign of financial arrangement for replacement of one machine. The
negotiation for the same is under process and will be finalised very
After installation of new machine, your directors do not foresee any hurdle
barring unforeseen circumstances for the bright future.
The Company has accepted deposits under due compliance with the provisions
of Section - 58 (A) of the Companies Act, 1956 read with the Companies
(Acceptance of Deposits) Rules, 1975.
There are no employees drawing salary exceeding the limits specified under
Section - 217 (2A) of the Companies Act, 1956 read with thE Companies
(Particulars of Employees) Rules, 1975.
PARTICULARS RELATING TO CONSERVATION OF ENERGY ETC.
Informations pursuant to Section 217 1) (e) are given in Annexure 1.
Mr. Sandeep R. Goyal was redesignated as the Managing Director, A
resolution to that effect is proposed for your approval. Mr. Akhilesh R.
Goyal and Mr. Rajesh R. Goyal retires by rotation and being eligible,
offers themselves for reappointment.
M/s. Ashok Dhariwal & Co., Chartered Accountants, Ahmedabad retires at the
Annual General Meeting and the Board recommends to reappoint them as
auditors Or the year.
As regards irregularity of payment in Provident Fund dues, the management
has to state that the financial crisis in the industry has forced to do so.
Your Directors wish to place on record their appreciation for whole hearted
Co-operation received from Financial Institutions, bankers and All the
On behalf of the Board of Directors
(Akilesh R. Goyal)
Place : Ahmedabad
Date : 31.10.98
Technology Absorption, Research and Developments
The Company does not have specific Research and Development department.
However, the Company has quality control department to check the quality of
products manufactured. The Company has not imported any technology.
Foreign Exchange earnings and outgo:
There was no Foreign Exchange Earnings & Outgo during the year.
For, Karnavati Spinners Limited
DATE : 31.10.98