SUN POLYTRON INDUSTRIES LIMITED
ANNUAL REPORT 2002-2003
Your Directors present the Twenty-second Annual Report together with the
Adited Accounts of the Company for the financial year ended 31st March 2003
and the Auditors' Report thereon.
Financial Result : (Rs. In Lakhs)
Years ended on Years ended on
PARTICULARS 31-03-2003 31-03-2003
Sales and Other income 6651.85 4946.31
Profit before Interest,
Depreciation and Tax 385.83 451.07
Less : Interest 1220.21 850.30
Depreciation 642.55 551.33
Profit Before Tax -1476.94 -950.56
Less : Prior Period Adjustment
Add : Surplus bought forward
from earlier years 1860.70 2924.29
Profit available for appropriation 383.76 1973.73
Less : Amount Transferred to
Reserve 113.03 113.03
Proposed Dividend - -
Provision for Tax on Dividend - -
Balance carried to Balance Sheet 270.73 1860.70
The performance of your Company continued to be less than satisfactory
during the year under review. The Net Loss of your Company increased to Rs.
1476.94 lacs during the current year from Net Loss of Rs. 950.56 lacs
during the year 2001-02. Though there has been a rise in sales to Rs.
6651.85 lacs from Rs.4946.31 lace but due to non-optimal product mix the
desired profitability is not achieved. Your Company's efforts to improve
its performance are continuing and are expected to fructify in the future.
As reported earlier, your Company has undertaken financial restructuring to
bring down the interest burden and subsequently increase the overall
financial health. The effort in this direction are continuing and the
completion of the financial restructuring will result in the revival of
health of your Company.
The Directors to not recommend any dividend for the year in view of the
Your Company has converted the Silvassa Unit to 100% Export Oriented Unit
(EOU). During the current year the Company is focusing on further improving
the cost competitiveness of the plant with respect to energy saving, waste
reduction, input/output ratio improvement so as to be increasingly
competitive with export markets. During the year under review your Company
has added new product line by installing Knitted Fabric Machines to tap the
potentials in export markets.
Shri Minesh Shah has been appointed as director with effect from 31.07.2003
and shall hold office upto the ensuing Annual General Meeting. The Company
has received notice from member pursuant to Section 257 of the Companies
Act, 1956 indicating his intension to propose the candidature of Shri
The industrial Development Bank of India (IDBI) had nominated Shri
Ravisekhar as a nominee Director on the Board of the Company in place of
Smt. Savita S. Sinha with effect from 30.04.2003. The Board places on
record its appreciation for the valuable services rendered by Smt. Savita
S. Sinha during her tenure as Director.
The IFCI Limited had nominated Smt. Prabha Bangia as a Nominee Director on
the Board of the Company in Place of Shri Naresh Saluja with effect from
08.09.2003. The Board Places on record its appreciation for the valuable
service rendered by Sri Naresh Saluja during his tenure as Director.
In accordance with the provisions of the Companies Act, 1956 and Articles
of Association of the Company Shri Dharmesh S. Keswani and Shri Santosh P.
Keswani Directors, retire by rotation and being eligible offer themselves
Directors Responsibility Statement
Pursuant to the requirement under Section 217(2AA) of the Companies Act,
1956, with regard to Directors' Responsibility Statement, it is hereby
1. That in the preparation of the annual accounts, the applicable
accounting Standards have been followed along with proper explanation
relating to material departures;
2. That the Directors have selected such accounting policies and applied
them consistently and made judgdements and estimates that were responsible
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;
3. That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, and for preventing and detecting fraud and
other irregularities and;
4. That the Directors have prepared the annual accounts for the financial
year ended 31st March 2003 on a 'going concern' basis.
During the year under reference, the Company has not invited and/ or
accepted any Fixed Deposit from the Public. There is no unclaimed and/or
unpaid deposits lying with the Company.
M/s Rohit Chandan & Co., Chartered Accountants hold office of the Auditors
of the Company until the conclusion of the ensuing Annual General Meeting.
However, they have expressed their inability to continue in the office and
have resigned as Auditors of the Company. Special Notice from a Member of
the Company has been received for appointment of M/s Kamal & Associates,
Chartered Accountants as Auditors of the Company. They being eligible for
appointment, the Directors recommend and request the members to appoint
them as Auditors and fix their remuneration.
Your Company is unable to comply with the Corporate Governance Code as
stipulated under Listing Agreement with the Stock Exchange as the
sufficient number of representative directors is not available on the
board. However. The Company is in the process of complying with the norms
at the earliest opportune time.
Dematerialization of Shares
The Company's shares are traded compulsorily in dematerialized from. In
this connection, the Company has already entered into agreement with
National Securities Depository Limited (NSDL) and Central Depository
Service (India) Limited (CDSL) and the Company's ID is INE 396E01016. The
member are requested to dematerialize their physical holding in view of
various advantages of holding the shares in dematerialize from
Particulars of Employees
None if the employee of the Company is covered under the provisions of
Section 217 (2A) of the Companies Act, 1956.
Particulars of energy conservation, technology absorption, foreign exchange
earnings and outgo
Information in accordance with the provision of 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 the Annexure
forming part of this report.
Industrial Relation continues of be cordial. The Board wishes to take on
record its appreciation to the entire workforce for their commendable
teamwork commitment and contribution during the year.
Your Director would like to express their grateful appreciation for the
assistance and co-operation received from the Financial Institution
including IFCI, IDBI, UTI, Syndicate Bank, various Government Departments,
Suppliers and Customers for their valuable support during the year under
By Order of the Board of
Dharmesh S. Keswan
Dated : 8th day of September, 2003
ANNEXURE TO THE DIRECTOR'S REPORT
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.
Conservation of Energy
The Company has adopted various measure to conserve energy thereby achieved
reduction the cost of production. The Company's own Technical staff have
identified future areas of energy reduction and based on their
recommendation the Company has engaged the service of professionals, who
are trained and expert in energy/fuel oil conservation In yarn Texturising,
Twisting and Dyeing plant. Details regarding the present energy consumption
including captive generation are furnished in Annexure Form 'A' as per the
requirements of the Companies (Disclosure of particulars in the report to
Board of Directors) Rules, 1988. A. Power and Fuel Consumption
PARTICULARS Current Year Previous Year
a. Purchased Units 385064 2951872
Total Amount (Rs.) 2016415 9395025
Rate Unit (Rs.) 5.25 3.18
b. Own Generation N.A. N.A.
2. Furnace Oil
Quantity (Ltrs.) 231010 86065
Total Amount (Rs.) 4619382 1085104
Average Rate (Rs.) 19.99 12.61
B. Consumption Per Unit of Production
Production Yarn (Kgs) 4512110 5608377
Electricity (Units) 0.09 0.53
Furnace Oil (Ltrs.) 0.05 0.02
A. Research and Development
i) Specific Areas in which R & D carried out by the Company.
a) Study of process Parameters
b) Studies experiments and reduction of wastage of yarn through better
handling of raw materials and doffing system.
c) Hose knitting and dyeing of polyester yarn for controlling shade
d) Development of Centrifugal System for Yarn Dyeing, which reduces cost of
e) Development of many new shades suitable for domestic/export market.
ii) Benefits derived as a result of above R &D ;
a) Quality Upgradation
b) Cost Reduction
c) Energy Savings
iii) Future Plan of Action
Continuous efforts to improve quality and reduce cost.
iv) Expenditure on R &D:
PARTUCLUARS Current Year Previous Year
a) Capital NIL NIL
b) Recurring 342156 214852
c) Total 342156 214852
Total R & D Expenditure
as percentage of 0.05% 0.04%
B) Technology Absorption
i) Efforts made towards technology absorption, and innovation and benefits
derived as a result thereof:
a) The Company's own Technical staff has experimented a studied Centrifugal
Technology, which results in saving power.
b) The Company experimented new winding Technology, which reduces cost of
ii) Details of Imported Technology: Not Applicable
iii) Foreign exchange Earnings and outgo:
There was no foreign exchange earning during the year. The total Foreign
exchange outgo during the year was of Rs. 2,63,612/-