PAPPILON EXPORTS LIMITED
Your Directors take pleasure in presenting the Sixth Annual Report for the
financial year ended March 31, 1995.
1. DIVIDEND :
Your Directors now recommend to the members the declaration of dividend of
15% aggregating to Rs. 34.50 lacs subject to deduction of tax for the year
ended March 31st, 1995.The bonus shares issued during the year are also
eligible for pro-rata dividend.
2. EXPORTS :
Your Company's export performance excelled during the year under review
with the turnover reaching a new high of Rs. 2304 lacs from Rs. 2266 lacs
achieved during the previous year. Your Company has achieved this growth
inspite of the sluggish market for export of hosiery garments. Your
Directors are pleased to inform you that the exports for the six months
ended September 1995 have already crossed Rs. 1500 lacs. Your Company also
has export orders worth Rs. 2500 lacs on hand. The current year promises to
surpass previous growth trends set by the Company.
3. OPERATIONS AND FUTURE PROSPECTS :
The Company continues to be one of the largest exporter from India of
hosiery garments. The demand for hosiery garments continue to grow in the
various traditional markets, the major being Germany and other West
European countries. Even though during 1994-95 general performance of
exporters from Tirupur was sluggish. Your Company was in a position to
maintain its growth trend in sales because of our ability to provide goods
at competitive prices while maintaining the high quality standards required
by the overseas buyers.
Over the past six years your Company has been relentlessly pursuing the
task of becoming internationally competitive in its business. A
multipronged strategy has been adopted with focus on quality, cost control
and productivity. During this year the strategy has paid good dividends
which is reflected in the sales and profit figures for the year.
As a part of future expansion programme the Company approached various
Financial Institutions and Commercial Banks and funds are in the pipeline.
The Company has placed further orders for various machineries with
internationally renowned manufacturers which all prove the strategic vision
in a rapidly progressive Global Market.
Your Directors look forward to the future with confidence and
4. FINANCE :
During the year your Company has raised an amount of Rs. 90 lacs from Small
Scale Industrial Development Bank of India, a leading financial institution
and Rs. 124 lacs from Wipro Finance Ltd. to augment its Working Capital
requirement and the funds have been employed for the said purpose.
Subsequent to the year-end your Company also came out with its maiden
public issue in May 1995 with the main object of raising fund for
modernising the Company's plant and machinery and to augment its working
capital requirements. The issue which was made at a premium of Rs. 40/- per
share aggregating Rs. 1100 lacs, received good response and the issue was
over-subscribed 1.2 times inspite of the prevailing market condition.
5. DIRECTORS :
During the year the following Directors tendered their resignations due to
personal reasons :
1. Sri Ashok Kumar Gupta
2. Sri Virendra Bapna
3. Sri Mukesh Chand Gupta
4. Sri K. Ravindran
5. Smt Anju Gupta
Your Directors would like to record their appreciation of the services
rendered by the Directors during their tenure of office.
The following Additional Directors were appointed by the Board :
1. Sri Bhagwan Premchandani
2. Sri Shyam Utam Singh
The Additional Directors are rich in experience and have expressed their
willingness to continue as Directors of the Company, if appointed at this
6. DEPOSITS :
The Company has not accepted any deposits from the public and hence no
information is required to be furnished in respect of outstanding dues.
7. AUDITORS :
M/s Ananthan & Kandaswami, Chartered Accountants retire at the conclusion
of this Annual General Meeting and have expressed their willingness to
continue as Auditors, if reappointed.
8. PARTICULARS OF EMPLOYEES :
Your Directors extend their appreciation to the employees of the Company
whose commitment and dedication has enabled outstanding levels of
Your Company does not have any employees details of which need to be
disclosed under Section 217(2A) of the Companies Act, 1956.
9. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTFLOW :
The particulars prescribed under the Companies (Disclosure of Particulars
in the Report of the Board of Directors) Rules, 1988 are furnished in the
Annexure to this Report.
10. ACKNOWLEDGEMENTS :
Your Directors place on record their appreciation of the guidance and
assistance received from the financial institutions and banks. Your Board
also thanks and expresses gratitude towards the shareholders, both old and
new for the confidence reposed in the Company.
CONSERVATION OF ENERGY
A. Power and Fuel Consumption
a. Purchased Unit (Kwh) 50304
Total Amount (Rs.in lacs) 1.41
Rate/Unit (Rs.) 2.40
b. Own Generation N.A.
2. Furnace Oil/LSHS
Quantity (Litres) 1246
Total Cost (Rs.in lacs) 0.10
Average Rate Rs.(Litre) 7.83
A. Research and Development (R&D)
The Company has its own in-house design centre wherein the latest designs
as accepted in the export markets are developed.
B. Technology absorption, adaptation and innovation
The Company does not have any technology tie-up and hence this proviso is
Foreign Exchange Earnings and outgo :
Regarding details of foreign exchange earnings and outgo, please refer note
Nos. 8 and 9 in Notes to the Accounts forming part of the Balance Sheet as
at 31st March, 1995.
By Order of the Board
Place : Tirupur
Date : 27th September, 1995.