MV COTSPIN LIMITED
Your Directors have pleasure in presenting the 6th Annual Report together
with the Audited Statement of Accounts for the year ended 31 st March,1999.
Current year operations
The Company has posted a turnover of Rs. 20.17 crores during 1998-99, an
increase of over 20% over last year. The recessionary trends in the global
textile markets countinued unabted in the year under review. Inspite of the
above conditions the company was able to post higher operating profits at
273.34 lacs against 175.16 lacs last year due to increase in volumes from
additional capacity installed and commissioned during 1998- 1999.
The cotton crop during the year under review continued to be adversely
affected and even though it is estimated to be 16.25 million bales against
14.80 million bales in 1997-98, it is still lower than 17.65 million bales
in the year 1996-97. The prices of Indian cotton in the year under review
were higher than comparable international cotton prices.
Total exports has increased to Rs. 12.50 crores against Rs. 9.53 in 97-98
an increase of 31%. The Company is committed to focus more on exports and
expand global market which will provide volumes and better reasisation in
time to come.
Y2K Preparedness Level
Your Directors are glad to report that the areas where Y2K problems will be
faced are very limited. Full Y2K compliance is expected to be achieved by
September, 1999. An internal team has been formed to address this problem.
The expenditure to ensure Y2 compliance is not expected to be significant,
The Company has not accepted any deposit from the public during the year
Shri S. S. Kothari and Shri Arvind Kumar, Directors of the Company retire
by rotation at the ensuing Annual General Meeting and being eligible offer
themselves for re-appointment.
Auditors ; Auditor's Report
M/S. P.K. Ajitsaria & Co., Chartered Accountants, Calcutta the present
auditors of the Company retire at the conclusion of the ensuing Annual
General Meeting and being eligible offer themselves for rappointment. The
observation made in the Auditor's Report read with notes of accounts are
Particulars of Employees
The information required under Section 217 (2A) of the Companies Act,1956
read with the Companies (Particulars of Employees) Rules 1975 regarding
employees not required.
Conservation of Energy, Technology absorption and Foreign Exchange earnings
The information in accordance with the provisions of Section 217(i)(e) of
the Companies Act 1956 read with the Companies (Disclosure of Particulars
in the Report of Board of Directors) Rules, 1988 is given in the Annexure
to the Report and form an integral part thereof
The Directors would like to place on record their grateful appreciation and
thanks to IDBI, State Bank of Bikaner & Jaipur, State Bank of India for all
the timely help and encouragement they have extended to the Company.
The Directors also wish to place on record their deep sense of appreciation
for the devoted services rendered by the officers, employees and workers of
the Company for its success.
For and on behalf of the Board of Directors
Date : June 18,1999.
A.DISCLOSURE OF PARTICULARS WITH RESPECT TO TECHNOLOGY ABSORPTION
a) Research and Development (R & D)
During the year under review no significant research work has been
undertaken by the Company.
b) Technology absorption, adaptation and innovation effort
The Company has installed the latest state-of-art imported Plant &
Machinery at its unit to produce a superior quality product.
Consequent to installation of latest plant & machinery, the Company
produced good quality of cotton yarn which is well accepted in the premium
segment both in domestic as well as in international market.
(Amount in Rs)
Current Year Previous Year
c) Foreign Exchange Earnings and Outgo
1. Foreign Exchange earned
Export of Cotton Yarn (F.O.B. Value) 84,779,576 51,278,314
2. Expenditure in foreign Currency
Capital Goods (C.l.F. Value) - 29,881,875
Spare Parts (C.l.F. Value) 2,089,110 316,464
Travelling Expenses 250,746 401,370
Export Commission 48,019 1,660,504
For and on behalf of the
Board of Directors
Date : June 18,1999.