Annual Report 1998-99
Shruti Synthetics imited
TO THE MEMBERS,
Directors of your Company have pleasure in presenting the 19th Annual
Report together with Audited Statement of Accounts for the year ended 31st
The over-all performance of the Company during the review period has been
adversely affected due to overall recession in the textile industry and
shrinkage of demand in domestic as well as overseas market. The Company has
also faced workers strike for about 93 days, during this period.
In-spite of the workers strike, the Company has produced 4319.66 M.T. yarn
as against 4522.16 M.T. produced in the previous year. The over-all sales
remained at Rs. 5358.01 Lacs as against previous year sales of Rs.6973.39
The profit margins have also been converted into losses due to the reasons
The Company's export performance has remained satisfactory. In spite of all
odds, it has achieved export turnover of Rs.1893.05 Lacs. Which is
marginally lower by 1.28 % as compared to the previous year. The Company
has diversified its export to the European countries also.
Your Company has been honored with the Export Excellence Award by the
Government of India for its tremendous export performance during the year
The productivity, efficiency and capacity utilisation have increased after
the workers strike. The total workers requirement per day has gone down
from 1350 workers for 12.5 M.T production to about 1050 workers for 17.5
The term lending financial institution1s have approved the deferment of
term loan repayment liabilities and have also funded the interest due upto
31st March, 1999.
In view of the losses during the period under review, your directors are
unable to recommend dividend on the equity shares.
Your directors1 have, time and again initiated several steps to modernise
the existing manufacturing facilities by adding six two for one twisters
(TFO's) to replace the ordinary winding and doubling machines, four Carding
machines and one D.G. set of 1250 KVA capacity.
The modernisation shall help the company in a long way to produce better
quality yarn both for the domestic as well as international markets.
Sh. J. P. Agarwal retires by rotation and being eligible. offer himself for
During the period, Sh. R. P. Agarwal has passed away. We pray to the god
for peace to the departed soul.
Sh. G. L. Agarwal and Sh. R. P. Soni have also resigned from the Board.
Sh. K C. Sodani was appointed as additional director during the year to
hold the office as such till the conclusion of the next annual general
The Board places on record their sincere appreciation for the services
rendered by them
M/s. A. Bafna & Company, Chartered Accountants, Jaipur will hold office
till the conclusion of the fortheoming Annual General Meeting and being
eligible offer themselves for re-appointment.
The observations in the Auditors Report are dealt with in the notes to the
accounts at appropriate Places and are self explanatory.
ENERGY CONSERVATION TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING AND
As required by the Companies (disclosure of particulars in the report of
Board of Directors), Rules, 1988, the relevant data pertaining to
Conservation of Energy, Technology Absorption are given in Annexure to this
The total exports on FOB basis were Rs.1649.57 Lacs as against imports on
CIF basis of Rs. 180.34 Lacs.
The Company has faced workers strike of about 93 days during the year.
Excepting this. the industrial relations, by and large, remained cordial
throughout the year.
As required under provisions of Section 217(2A) of Companies Act,1956, read
with Company (Particulars of Employees) Rules,1975 as amended, none of the
employee was in receipt of remuneration in aggregate, more than Rs.
6,00,000/- Per annum or Rs. 50,000/- Per month during the year
During the year your Company has taken effective steps to overcome the Y2K
problem. The estimated expenditure on solving this problem is Rs. 1.50
The Board records its grateful appreciation for cooperation and valuable
guidance extended to the Company by Central & State Governments, Financial
Institutions, Banks, valued customers and suppliers.
Your Directors also wish to place on record its appreciation for the
dedicated services of employees.
On Behalf of the Board of Directors
Place: Udaipur (B.R. AGARWAL)
Date : 04.12.1999 Chairman & Managing Director