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Sri Malini Spinning Mills Ltd.

BSE: 521119 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
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Sri Malini Spinning Mills Ltd. (SRIMALINI) - Director Report

Company director report

SRI MALINI SPINNING MILLS LIMITED ANNUAL REPORT 2011-2012 DIRECTOR'S REPORT The Board of Directors of your company have pleasure in presenting the Twenty Second Annual Report of the Company together with the audited statements of account for the year ended 31st March, 2012. 1. The financial results are as follows: Amount in lacs of Rupees Particulars 2011-2012 2010-2011 Sales including other income 246.65 1582.78 Profit/Loss before interest and Depreciation -13.55 1408.69 Financial Cost 244.32 205.18 Depreciation - 14.81 Prior Period Adjustments - - Profit/Loss before Taxation (13.55) 1188.70 Deferred Tax - - Add: Loss brought forward from the Previous Year (1287.25) (2475.96) Net Loss carried to Balance Sheet (1300.80) (1287.25) DIVIDEND: As the Company has incurred loss, payment of dividend could not be considered. REVIEW OF OPERATIONS AND FUTURE' OUTLOOK: DURING THE PERIOD UNDER REVIEW THE COMPANY INCURRED A NET LOSS OF RS.13.55 LACS. THE ONLY REVENUE TO THE COMPANY IS BY WAY OF LEASE RENT RECEIVED FROM M/S.THIRUVALLUVAR TEXTILES PRIVATE LIMITED, POST BOX NO.6, 2-9, SINQALANDAPURAM PRIVU ROAD, RASIPURAM-637 408. DIRECTORS RESPONSIBILITY STATEMENT: The Board of Directors of the Company confirms: 1. That in the preparation of the Annual accounts, the applicable accounting standards have been followed and there has been no material departure. 2. That selected accounting policies were applied consistently and the Directors made judgments and estimates that are reasonable and prudent as to give a true and fair view of the state of affairs of the company as at the end of the financial year and of the loss of the Company for that period. 3. That proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safe guarding assets of the Company and for preventing and detecting fraud and other irregularities. 4. That the Annual accounts have been prepared on a going concern basis. AUDITORS Our Company Knows that the present Auditor of the Company Mr. L. Narayanan, Chartered Accountant, Plot no 28, Sunder Gardens, Modern Theatres, Yercaud Main Road, Salem-636 008, was re-appointed as the Auditor of the Company in the AGM held on 30.09.2011. He is holding his office since then. His office becomes vacant with the conclusion of the 21* Annual General Meeting. As he is eligible and willing, offers himself for re-appointment during the current year. DIRECTORS Sri. S. Boopalan, the director of the company, retiring by rotation and being eligible and willing for re-appointment offers himself for the same. PARTICULARS OF EMPLOYEES During the year under review, there were no employees with in the purview of Section 217(2A) of the Companies Act, 1956. Information as required under Section 217(1) (e) is Nil. APPOINTMENT OF WHOLE TIME COMPANY SECRETARY The office of the whole time company secretary is vacant and the board is taking necessary steps to fill the vacancy at the earliest. PERSONNEL Your Directors wish to place on record their deep appreciation of the good work performed by the employees. Cordial relationship is maintained with all the employees of the company. Your Directors look forward to the same in future. ACKNOWLEDGEMENT Your Directors wish to thank various Government Agencies, the Banks and other Institutions for their continued co-operation and support to the Company. For Sri Malini Spinning Mills Limited Salem S. RAJENDRAN K.S.S. PRAKKAASH 31.07.2012. Director. Executive Director MANAGEMENT DISCUSSION AND ANALYSIS REPORT: 1. INDUSTRY STRUCTURE AND DEVELOPMENT: The Government decided to Extend the Textile upgradation Fund Scheme for further period and discussions are taking place to include Second hand value added machineries and subsidy Scheme for power plants also. 2. OPPORTUNITIES, THREATS, RISKS AND CONCERNS: The Industry WHICH WITNESSED HEAVY LOSSES DURING THE TWO QUARTERS OF 2010- 11 DUE TO DRASTIC REDUCTION IN YARN PARICES SAW A GOOD OUTPUT DURING THE COTTON SEASON IN THE LAST QUARTER INJECTED CONFIDENCE IN THE MINDS OF THE PROMOTERS AND SHOWN IMPROVEMENT IN YARN SALES PERFORMANCE DUE TO BETTER REALISATION. THE GOVERNMENT DECISION TO EXPORT ADDITIONAL QUANTITY BASED ON CAB'S ESTIMATE RESULTING IN SHORTAGE OF RAWMATERIAL FOR LOCAL CONSUMPTION LEAD TO HOARDING OF STOCKS AND INCREASE IN PRICE. SOME OF THE MILLS HAVE ALREADY DECIDED TO IMPORT COTTON WHICH IS MORE REMUNERATIVE. THE LOSS INCURRED DURING THE YEAR 2010-11 HAVE RESULTED EROSION OF CURRENT ASSETS AND NON-AVAILABILITY WORKING CAPITAL NOTSUPPORITING COTTON PURCHASES THOUGH THE GOVERNMENT HAVE PROMISED TO CONSIDER CAPITAL RESTRUCTUIRING SUPPORTED WITH ADDITIONAL WORKING CAPITAL IS YET TO TAKE PLACE. EXPORT MARKETS STILL CONTINUE TO BE SLUGGISH WITH EUROPEAN ECONOMY STILL TO BE REVIVED EXCEPT SOME IMPROVEMENTS IN USA. 3. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY: Your Company is having a well documented and structured Systems and procedure and well laid down responsibilities for people in functional areas. The Company is equipped with reasonable equipments to the extent possible with the available finance under its control and has the support of dedicated and highly experienced human resources. The Systems are totally computerized which helps to Monitor Control Systems and the same is appraised in the Audit Committee. FINANCIAL PERFORMANCE AND RESULTS OF OPERATIONS: A. RESULTS OF OPERATION 1. INCOME: Lease Rental and Interest received on Electricity Deposit. 2. EXPENSES Due to the stoppage of operations by self and leasing the company, the management is taking all efforts to maintain the expenditure under control. 3. PROFIT /LOSS: The Company shows a LOSS OF Rs. 13.55 lakhs AFTER ADJUSTING EXPENSES FROM THE ONLY REVENUE FROM LEASE RENTALS. B. FINANCIAL CONDITION 1. SOURCE OF FUNDS : There is no change in the share capital, reserves and surplus, unsecured loans and secured loans, except for the interest accumulation. 2. APPLICATION OF FUNDS: NIL. MATERIAL DEVELOPMENTS ON HUMAN RESOURCE FRONT One of the key resource for your company is its dedicated people, but for the fluctuating availability of the labour force at times. Your Company is always striving to create a favourable work environment with the available resources at its command, doing its best by maintaining cordial relationship with the employees.