RADHIKA SPINNING MILLS LIMITED
ANNUAL REPORT 2001-2002
To The Members,
Your Directors have great pleasure in presenting the 9th Annual Report
together with Audited Accounts of the Company for the year ended 31st
The Company incurs losses during the current year due to recession in
Textile Industry. The sales for the current year have decreased by 1% over
the previous year. The Company incurred losses due to high raw material
cost and heavy burden of interest and depreciation charge over the previous
Keeping in view the heavy losses for the year under review, your Directors
are unable to recommend any dividend on the Equity Shares of the Company.
As on 31st March, 2002, no deposits have been claimed and paid or renewed.
Also no claim was pending as on that date.
During the year, Smt. Savita Gupta (IDBI Nominee) and Capt. Mukesh Gombar,
resigned from the Board and Mr. Manoj Kumar Aggarwal was appointed as
Additional Director of the Company pursuant to Section 260 of the Companies
Act, 1956 and Article 80 of the Articles of Association of the Company
until the next Annual General Meeting of the Company.
Shri Ashok Kumar Aggarwal and Shri A. K. Batra, Directors are due for
retirement by rotation in this Annual General Meeting and being eligible
have offered themselves for re-appointment. Your Directors recommend their
Pursuant to Section 217(2AA) of the Companies (Amendment) Act, 2001, the
Directors confirm that
a) That in the preparation of the annual accounts the applicable accounting
standards have been followed;
b) That the Directors 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 profit or loss of
the Company for the year under review;
c) That the Director's 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 preventing and detecting fraud and other irregularities;
d) That the Directors have prepared the annual accounts for the financial
year ended 31st March, 2002 on a "going concern" basis.
M/s Prakash Agarwal & Co., Auditors of your Company are liable for
retirement at this Annual General Meeting and being eligible have offered
themselves for re-appointment.
The statement pursuant to Section 217 (1) of the Companies Act, 1956 read
with Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988 and pursuant to Section 217 (2A) of the Companies
Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 is not
applicable as the Company does not have any employee drawing remuneration
exceeding the sum prescribed therein.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS,
As required under Section 217 (1) (e) of the Companies Act, 1956, read with
the Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988, the information relating to Conservation of Energy,
Technology Absorption and Foreign Exchange Earnings and Outgo is annexed as
Annexure - A and forms part of this report.
Pursuant to Clause 49 of the Listing Agreement, a report on corporate
governance is given in Annexure 'B'.
Your Directors place on record due appreciation of the trust reposed in
your Company by the Financial Institutions, Banks, Stock Exchanges and
other Government agencies, suppliers, customers, investors and depositors.
Your Directors also place on record their sense of appreciation of the
valuable contribution made by the staff of the Company.
On behalf of the Board
Place : New Delhi D.K. Aggarwal
Dated : 14th August, 2002 Chairman
ANNEXURE `A' TO DIRECTORS' REPORT
Note on Energy Conservation
Owing to to short and erratic power supply in the State of Haryana, the
electricity for running the mills is being generated through Diesel
Generating Sets. 100% of the total power consumption is met with own
generation through D.G. Sets. To save the fuel, FLF, EMDFA 200 Diesel
additives are used in Kirloskar Cummins D. G. Sets.
B. DISCLOSURE OF PARTICULARS WITH RESPECT TO TECHNOLOGY ABSORPTION
The R & D Department in the Mills got developed several spare parts for the
imported machines and as on date approximately 80% spare parts are being
produced locally. A few modifications in the Blow Room have resulted in
increase of good quality product.
C. PARTICULARS OF FOREIGN EXCHANGE EARNINGS AND OUTGO
(Rs. in Lacs)
Total Foreign Exchange Earning - -
Total Foreign Exchange Outgo - -
On behalf of the Board
Place : New Delhi Dinesh Kumar Aggarwal
Dated : 14th August, 2002 Managing Director