SRH SYNTHETICS LTD.
ANNUAL REPORT 2000-2001
To the members,
Your Directors are pleased to present the Seventh Annual Report and the
Audited Statement of Financial Accounts of the Company for the year ended
31st March, 2001.
The year in question has been very tough for the Company due to the overall
depression in the economy and also continous bad conditions in the
synthetic yarn industry. The sales during the year dropped to Rs.4.22
Crores. The Fixed assets decreased to Rs.9.04 crores with no addition
during the year. The depreciation dipped to .41 crores. The Financial
charges again rose steeply to Rs.177.03 lacs resulting in very heavy
losses. The production of the company had been stopped since the closure of
factory due to labour unrest from 10.7.2000
The directors do not recommended any dividend, bearing in mind the losses
in this fiscal and cash flow requirements for ploughing back of the company
and in order to conserve them for future needs.
In accordance with provisions of the Companies Act, 1956 and Articles of
Association of the Company Smt. Lata Garera and Shri S. B. Pandey retire by
rotation and being eligible, offer themselves for re-appointment.
M/s.M.M.Babbar & Co., Chartered Accountants retires at the conclusion of
the Annual General Meeting as Statutory Auditors and being eligible for re-
appointment, offer themselves for reappointment.
As regards the Auditor's observations, the explanations given in their
report and in the Accounting Policies and Notes on Accounts (contained in
Schedule 19 of the Balance Sheet) are self explanatory and therefore
doesn't call for any further comments or explanation from the Board.
The Company has not accepted any deposit under Section 58A of the Companies
Act, 1956 from public during the year.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS
Information pursuant to 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 is given in Annexure 1 to this report.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies
amendment Act, 2000 with respect to Directors Responsibility Statement, it
is hereby confirmed.
i) That in the preparation of the annual accounts for the financial year
ended 31st March, 2001, the applicable accounting standards had been
followed along with proper explanations relating to material departures.
ii) That the directors had selected such accounting policies and applied
them consistently and made judgements and estimates that were 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.
iii) That the directors had prepared the accounts for the financial year
ended 31st March, 2001 on at going concern' basis.
PARTICULARS OF EMPLOYEES
The company has not employed any employee covered by Section 217 (2A) of
the Companies Act. Thus statement Under Section 217 (2A) is not required.
Your Directors acknowledge the contribution made by the Executives, Staff &
workers of the company.
For and on behalf of the Board
SRH SYNTHETICS LTD.
(Shri Chand Garera)
Chairman & Managing Director
Place : New Delhi
Dated : 29th June, 2001.
Report on conservation of energy, technology absorption and foreign
exchange earnings and outgo in the manner prescribed as per Companies
(Disclosure of Particulars in the respect of Board of Directors) Rules
1988, read with provision of section 217 (1) (e) of the Companies Act,
Form for disclosure of particulars with respect to conservation of energy:
A. CONSERVATION OF ENERGY
i) Energy Conservation measures taken:
The Company has already installed plant and machineries which are energy
ii) A combination of genset & electricity is used in production.
iii) Use of automatic power factor correction system.
iv) Lighting ficture are sodium vapour which effect saving in lighting
v) Uninterupted Power supply system are being used.
b) Additional investments and proposal,if any, being for reduction of
consumption of energy.
i) General measures for conservation of energy are pursued on an on going
ii) No specific investment is proposed in isolation but additional
investment in fixed assets of the company, will be done keeping in view
need for optimising energy conservation.
c) Impact of the measures at (a) & (b) above for reduction of energy,
consumption and consequent impact on the cost of production of goods:
-Reduction in cost of production, though exact quantification is not felt
-Improvements in energy usage efficiency.
-improvements in plant efficiencies.
RESEARCH AND DEVELOPMENT (R&D)
Disclosure of particulars with respect to technology absorption.
A. RESEARCH AND DEVELOPMENT (R&D).
1) Specific Area in which Company carried out the R&D : None
2) Benefits derived as a result of the above R & D : None
3) Future plant of action:
Continue to introduce new ranges.
4) Expenditure on R & D
Total : NIL
Total R & D Exp. as percentage of total sales : NIL
B.TECHNOLOGY ABSORPTION, ADOPTION AND INNOVATION.
1) Efforts in brief made towards technology absorption,
adoption and innovation:
No new technology has been imported by the company.
2) Benefits derived as a result of the above efforts e.g. product
improvement, cost reduction, product development, import substitution etc.
3) In case of improved technology imported during the last 5 years,
following information may be furnished:
A) Technology imported N.A.
B) Year of import N.A.
C) Has Technology been fully absorbed N.A.
D) if not absorbed N.A.
FOREIGN EXCHANGE EARNINGS AND OUTGO
i) Activities relating to export, initiatives taken to increase export,
development of new export markets for products and services, and export
ii) Total foreign exchange used and earned Rs. Nil (P.Y NIL)
For and on behalf of the Board of Directors
SRH SYNTHETICS LTD.
Place: Delhi (Shri Chand Garera)
Date : 29th June, 2001 Chairman & Managing Director