PARASRAMPURIA INDUSTRIES LIMITED
ANNUAL REPORT 2002-2003
Your Directors submit their Seventeenth Annual Report together with the
Audited Statement of Accounts for the year ended 31st March, 2003.
(Rs. in Lacs) (Rs. in Lacs)
Turnover 9461.38 9412.22
Gross Profit before Interest,
Depreciation & Taxes (-)324.40 (-)58.39
Less : i) Interest 686.60 1072.97
ii) Depreciation 469.97 498.85
Profit before Taxes (-)1480.97 (-)1630.21
Less : Provision for Taxes - -
Profit after Taxes (-)1480.97 (-)1630.21
Add : Balance brought
forward from the
previous year (-)10871.10 (-)9240.89
Balance Carried to - -
Balance Sheet (12352.07) (10871.10)
SYNTHETIC YARN DIVISION
During the year under review, the company has achieved a turnover of
Rs.9461.38 lacs as against Rs.9412.22 lacs for the previous year. The loss
(before providing for Depreciation and interest) has increased to Rs.324.40
lacs as against a loss of Rs.53.39 lacs suffered by the Company in the
The Synthetic Filament Yam Industry continued to reel under recessionary
conditions during the year under review. Although there has been a growth
in the consumption of Polyester POY, the problem of oversupply in the
domestic market continues. During the current year, it is expected that the
demand supply position will break-even resulting in better prospects for
No Dividend has been declared on account of loss suffered by the Company.
As informed in the last Directors' Report, the proposed Expansion Project
for increase in the capacity from 9,750 TPA to 15,600 TPA still remains
incomplete in the absence of availability of the requisite funds for the
same. Hence, no progress was made during the year under review. The
expected ECB proposal could not materialise uptill now.
During the year under review, the Company's exports including deemed
exports were Rs.3201.48 lacs as against Rs.1150.00 lacs for the previous
COMPANY S REFERENCE TO BIFR
In the month of July 2002, the Company has filed an Appeal in AAIFR
against the Order passed by the Honourable BIFR Bench that the reference
filed by the Company is non-maintainable. The decision of BIFR on this
appeal filed by the Company is still pending. Hence, BIFR's protection to
the Company continues.
As informed in the last Directors Report. all legal proceedings for
recovery against your Company has been stayed till the reference is decided
However. during the year under review, the Government has enacted "The
Securitisation and Reconstruction of Financial Assets and Enforcement of
Security Interest Act 2002" under which Banks and Financial Institutions
have been given powers to take possession of securities of defaulting
companies. In this regard the Company has received Notices from Financial
Institutions and Banks under the said Act. The Company is in dialogue with
the Banks and Financial Institutions to try and find an applicable solution
which would be in the interest of all parties.
EXTERNAL COMMERCIAL BORROWING (ECB)
The Company is not able to get the necessary permission from Government of
India and is still pursuing the matter.
ASSIGNMENT OF LOAN BY ICICI BANK LTD.
During October 2003 ICICI Bank Ltd. has assigned the debt owed to them by
our Company to a Private Party. Under the said assignment, ICICI Bank Ltd.
has settled the amount to be paid to them by the said Private Party in a
particular time frame after which all the rights, title and interest of
M/s. ICICI Bank Ltd. (including the suit filed by them in DIRT, Mumbai)
would be transferred to the said Private Party. The said assignment of debt
was informed to the DRT, Mumbai.
As on 31st March, 2003 Deposits of Rs.4.23 lacs had matured and were due
for repayment but remained unclaimed. However, out of these Deposits a sum
of Rs. 3.08 lacs has since been repaid.
CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION
As required by the Companies (Disclosure of Particulars in the Report of
the Board of Directors) Rules 1988, the relevant data pertaining to
Conservation of Energy and Technology Absorption under Section 217(e) is
annexed hereto and forms part of this Report.
PARTICULARS OF EMPLOYEES
During the year under review, the Company had no employee whose particulars
are required to be mentioned pursuant to the provisions of Section 217(2A)
of the Companies, Act, 1956 read with Rules thereunder as amended from time
LISTING AGREEMENT COMPLIANCE
The Company's securities are listed with the Stock Exchange, Mumbai and
Delhi Stock Exchange Association Limited, Delhi.
The Company had harmonious Industrial Relations at all levels of the
Organisation. It will he the endeavour of the Company to continue to
maintain such relations.
The Directors express their appreciation for the services rendered by the
Employees of the Company at all levels.
RESIGNATION OF SHRI R.S. BUBNA, GENERAL MANAGER (LEGAL) AND COMPANY
Shri R. S. Bubna resigned from the Company with effect from 01/03/2003. The
Directors place on record their sincere appreciation of the services
rendered and for the valuable guidance given by him during his long
association with the Company.
In accordance with the provisions of the Companies Act, 1956 and the
Articles of Association of the Company, Mrs. Bhagyam Ramani retires by
rotation and being eligible, offers herself for reappointment.
DIRECTORS' RESPONSIBILITY STATEMENT
In accordance with the provisions of Section 217 of the Companies Act,
1956, your Directors state ;
I. that in the preparation of Annual Accounts, applicable Accounting
Standards have been followed.
II. that they have selected such Accounting Policies and applied them
consistently and made judgements and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of the
Company at the end of the Financial Year and of the loss of the Company for
III. that they have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and irregularities.
IV. that the Annual Accounts have been prepared an a Going Concern basis.
As per Clause 49 of the Listing Agreements with Stock Exchanges, your
Company has come under the ambit of Corporate Governance. However. inspite
of sincere efforts to induct independent directors on its Board, the
Company was unable to appoint the requisite number of directors. Hence the
Company could not comply with Clause 49 of the Listing Agreements with the
M/s. M. L. Sharma & Company, Chartered Accountants, the retiring Auditors
of the Company, offer themselves for reappointment by indicating their
eligibility under Section 224(1) the Companies Act. 1956.
With reference to the observations made in the Auditors' Report the notes
on accounts as contained in Schedule 13 of the Annual Report are
self-explanatory and therefore do not call for any further comments under
Section 217(3) of the Companies Act, 1956.
On Behalf of the Board of Director
Place : Mumbai RATANLAL PARASRAMPURIA
Dated : 28th November, 2003 Chairman
ANNEXURE TO DIRECTORS' REPORT REPORT ON CONSERVATION OF ENERGY, TECHNOLOGY
ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO IN ACCORDANCE WITH THE
COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF THE BOARD OF
DIRECTORS) RULES, 1988.
A. CONSERVATION OF ENERGY
1. Energy Conservation measures taken The Company has taken the following
measures for energy conservation
i) HSD Fuel Operated D.G. Sets converted to L.D.O./S.K.O Operated to reduce
the cost of fuel.
ii) Two D.B. Sets, Intercooling System provided by installing Heat
Exchanger to reduce fuel consumption.
iii) Fresh Air Ducts provided on D.G.Sets to increase Air Filler Life and
iv) F.O. Based Engines installed on hired basis to get reduced electric
power at low unit cost.
v) At Piparia Plant utilisation of natural air for Airconditioning is
implemented by installing Ceilulosic Pads in AHUs and FRP return air fans
to achieve required cooling at D.Tex area and to reduce refrigeration load,
thus saving electric load.
vi) At Dadra Plant utilisation of Natural Air for Draw Texturising, Air
Conditioning implemented by installing Air Fans.
2. Additional Investments and Proposals if any, being implemented for
reduction of consumption of energy
i) Study is undertaken for using low cost fuels in Power Generators.
ii) Study is undertaken for inc, easing of production by installing
additional Winders on some lines.
iii) Study is undertaken for using of FRP Fans in place of Aluminium Fans
of Airconditioning Systems.
3. Impact of the measures at 1 & 2 above for reduction of energy
consumption & consequent impact on cost of production of goods:
We have been able to reduce the power consumption substantially by virtue
of various schemes in hand.
4. Total energy Consumption and energy consumption per unit of production;
The details are provided in Form 'B' annexed hereto.
B. TECHNOLOGY ABSORPTION
Details as per Form 'B' annexed hereto.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO
(Rs. in lacs)
1. Foreign Exchange
Earned 247.27 1149.78
2. Outgo of Foreign
i. CIF Value of imports 928.29 627.45
ii. Expenditure in Foreign Currency 1.05 12.77
Form For Disclosure of Particulars With Respect To Conservation of Energy.
A. Power and Fuel Consumption ;
Unit (KWH in thousands) 9259 10997
Total amount (Rs. in lacs) 266.07 318.65
Rate/Unit Rs. 2.84 2.72
b. Own Generation
Through Diesel Generator
Unit (KWH in thousands) 17624.39 17546.85
Units per ltr of diesel oil 3.61 3.56
Cost per Unit (Fuel only) Rs. 3.59 3.68
Coal Nil Nil
3. Furnace oil
Quantity (K ltrs) 827.37 1056.71
Total Amount (Rs. in lacs) 85.06 87.18
Average Rate Per ltr Rs. 10.28 8.25
4. Others Nil Nil
B. Consumption per unit of production
POY Yarn POY Yarn
1. Production (with details) 12026.22 MT 12306.40 MT
2. Electricity (Purchased + Own
Generation) (KWH in thousands) 26983.85 29258.72
3. Furnace Oil (K ltrs) 827.32 1056.71
4. Coal Nil Nil
5. Electricity (KWH) per Kg.
of Yarn produced 1.53 2.38
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO TECHNOLOGY ABSORPTION
RESEARCH AND DEVELOPMENT
1. Specific areas in which research and development carried out by the
- Development of new Deniers & Colours to cater to the export potential.
- Development of new indigenous master batches for PP/Polyester.
Development of Semi-Dull Micro Filament Polyester Yarn for finer dpf
- Development of Dope Dyed Polyester Filament Yarn with finer dpf in
different colours trials taken.
- Polymer ciltration improvement done, causes increase in pack life.
- Packed weight of POY is increased to reduce the waste.
- Development of indigenous Spin Finish Oils.
- Development of indigenous P.P.chips & running successfully.
2. Benefits derived as a result of the above research and development,
- Reduction in cost of Master Batches by Import Substitution
- Reduction in cost by using indigenous Spin Finish Oil.
- New Shades developed to improve marketing.
- Cost reduction/improved utilisation of energy.
- Technological upgradation.
- Maintaining market leadership/preparedness to counter competition in the
changed liberalised environment.
- Pun Polyester on Polypropylene lire successfully.
- Production increased in Polypropylene line by changing input.
- Production of Polyester Semi-bright & Cationic yarn started and running
- Production of Trilobal coloured yarn started, running successfully.
3. Future plan of action
Continuation of present work in R & D for introduction of new novelty yarns
and processor, improvements in the existing products and processes in
various areas in which the Company is operating.
4. Expenditure on R & D
a) Capital )
b) Recurring ) The expenditure has been charged under
c) Total ) primary head of account.
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION.:
1. Efforts in brief made towards technology absorption, adaptation and
Continuous interaction with technical collaborators has been maintained to
upgrade ourselves for the technology development by collaborators. Our
technical people have been attending various Seminars and workshops being
organised by various institutions. We kept a close interaction with our
sister concern to exchange the developments taking place at each others
2. Benefits derived as a result of the above efforts, e.g. product
improvement, cost reduction, product development. import substitution etc.
New shades & deniers development to keep ourselves ahead in
Indigenous vendors for consumables developed to reduce the cost.
3. In case of Imported Technology (imported during the last 6 years
recknoed form the beginning of the financial year) following information
may by furnished :
No Technology has been imported during the last 6 years.