STELLAR EXPORTS LIMITED
Your Directors take pleasure in presenting the Eighth Annual Report of your
Company together with the Audited Accounts for the year ended June 30,
THE YEAR IN RETROSPECT :
The year 1994-95 has been of great significant for your Company. The
Company had made the first issue of equity shares to the Public and has
accordingly attained the status of a Listed Company. The Company's shares
are listed on the Bombay, Hyderabad and Jaipur Stock Exchanges.
The Hand Knotted Carpets being produced under the supervision of the
company have found good market in India, in addition to the USE and Canada,
and during the current year emphasis was mainly laid on the domestic sales.
The export markets for carpets, during the Financial Year 1994-95, were
very much depressed on account of the issues relating to Child Labour and a
general sluggish off take at the retail levels in North America and Western
Europe. This trend is however expected to change for the better during the
current financial year.
The Company had recorded a gross sales volume of Rs. 527.88 lakhs, posting
an operating profit of Rs. 47.38 lakhs. during the year 1994-95.
On account of the depressed market conditions and an uncertain future for
the industry, your management had considered appropriate to rely more on
the job working for the production of carpets, and to implement the
company's project fully after a definite trend emerges in the near future.
The civil works for the project have been completed and the critical
machinery has arrived at the factory site.
YEAR IN PROSPECT :
During the current financial year 1995-96, your company has made some
strategic changes in the activities, which will have a long term positive
impact on the turnover and the earnings of your Company. The Company
commenced in International Trading Division at Hyderabad, with focus on the
export of Agro Products. Extensive campaign has been done with respect to
these products in CIS, West Africa and the Middle East. The Company has
bagged good orders for execution during the current year and the following
year. A good rapport has been established with large importers in the above
countries. The turnover and profitability of the company are expected to
improve substantially on account of this diversification.
A new beginning has also been made in the export of carpets, with the
appointment of a permanent representative in USA to look after the
distribution of carpets in USA. Several new wholesalers and retailers have
started working with the company, due to the good quality product supplied
by the Company. All this will add well to the carpet export sales of the
Company during 1996-97 and the following years.
The Company has not accepted Deposits from the Public during the year 1994-
95 and hence, the provisions of Section 58-A of the Companies Act, 1956 are
not applicable to the Company.
Mr. Bala S. Mallela retires by rotation at the ensuing Annual General
Meeting and being eligible, offers himself for re-appointment.
M/s. K.R. Bapuji & Co., Chartered Accountants, Hyderabad, the Company's
Statutory Auditors, hold office until the conclusion of the ensuing Annual
General Meeting and, being eligible, are recommended for re-appointment.
Their re-appointment, if made, will be within the limits prescribed under
Section 224(1B) of the Companies Act, 1956.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS
The Company had no activities relating to conservation of energy and
technology absorption during the year 1994-95.
The information relating to Foreign Exchange earnings and outgo as required
under Section 217 (1)(e) of the Companies Act, 1956 is given below.
The Foreign Exchange outgo on account of travelling is Rs. 5.72 lakhs.
PARTICULARS OF EMPLOYEES
Section 217(2A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Rules, 1975 is not applicable to your Company as
none of the employees is in receipt of remuneration of more than Rs.
25,000/- per month.
Your Directors take this opportunity to express their sincere thanks to the
Bankers, Rajasthan State Industrial Development and Investment Corporation
Limited (RIICO), Suppliers, Clients/Customers and various other agencies
for the valuable assistance, support and co-operation extended by them to
the Company. Your Directors place on record their appreciation of the good
work done by the employees of the Company at all levels.
For and on behalf of the Board of Directors
A. MAHIPAL REDDY M.V. SIVA RAM
Director Managing Director
Place : Hyderabad,
Dated : 12th December, 1995.