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Chetak Spintex Ltd.

BSE: 531655 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Chetak Spintex Ltd
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Chetak Spintex Ltd. (CHETAKSPINTEX) - Director Report

Company director report

CHETAK SPINTEX LIMITED ANNUAL REPORT 2003-2004 DIRECTOR'S REPORT Dear Shareholders, Your Directors have pleasure in presenting their Sixteenth Annual Report together with the Audited Accounts of the Company for the year ended 31st March, 2004. FINANCIAL HIGHLIGHTS OPERATIONAL RESULTS CURRENT PREVIOUS YEAR YEAR (Rs. in Lacs) (Rs. in Lacs) 2003-2004 2002-2003 Sales & Other Income 1968.95 1615.65 Profit before interest & Depreciation 239.23 202.53 Less: Interest 9376 9058 Profit before Depreciation 145.47 111.95 Less: Depreciation 119.63 88-6363 25.84 23.32 Less: Depriciation related to earlier years 0.99 _ 24.85 23.32 Add: Excess Provision written back 0.01 0.15 24.85 23.47 Less: Expenses for earlier year 0.50 0.86 Profit before Taxation 24.36 22.61 Less: Provision for Taxation 2.00 1.82 Net Profit for the year after taxation 22.36 20.79 Less: Provision for Taxation for earlier years 0.12 1.14 Net Profit after Tax 22.48 19.65 Add: Surplus of Profit and Loss Account of earlier years 3502 4037 Profit Available for appropriation 57.51 60.02 Transfer to General Reserve 25.00 25.00 Transferred to Balance Sheet 32.51 35-02 WORKING DURING THE YEAR The production of Synthetic Yarn during the year is 2336.47 M.T. as compared to the previous year's production of 1870.31 M.T. during the corresponding period. Thus, registering a positive increase of 25% over the last year production. EXPANSION PROGRAMME Your Directors are pleased to inform the completion of the Expansion Programme during the year with the completion of the proposed Expansion Programme the company's production capacity is expected to improve considerably. TURNOVER AND PROFITABILITY The completion of the expansion Programme will make company's products more competitive, which your directors' hope will improve, the profitability. During the year turnover in terms of Rupees was 1908.94 lacs as compared to Rs. 1557.81 lacs in the previous year. MARKETING The Company's brand "AMLON" continued to be acceptable in the market. DEPOSITS Company has accepted deposits after complying with the requirements of section 58 A of the Companies Act, 1956. AUDITORS' REPORT Observations made in the Auditors Report are selfexplanatory and therefore do not call for any further comments. LISTING The equity shares of the Company are listed at Delhi Stock Exchanges. However, in view of no trading in the fast three years, the members have resolved to delist the shares from Ahmedabad, Jaipur & Mumbai Stock Exchanges in the Fourteenth Annual General Meeting held on 27`1 September 2002. DIRECTORS RESPONSIBILITY STATEMENT Your Directors would like to confirm that: I. In the preparation of the Annual Accounts, the applicable Accounting Standards have been followed II. The Directors have selected such Accounting Policies and applied them consistently and made judgments and estimates that are 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 of the company for the period; III. The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; IV. The Directors have prepared the Annual Accounts on a going concern basis. DIRECTORS Sh. P.C. Saraff & Sh. emit Agarwal retires by rotation, being eligible offers himself for reappointment. AUDITORS M/s. Saluja & Associates, Chartered Accountant, New Delhi, held office until the conclusion of ensuing Annual General Meeting and, being eligible. offers themselves for reappointment, the appointment, if made, would be within the prescribed limits under section 224 (1) of the Companies Act, 1956. PARTICULARS OF EMPLOYEES There is no employee in the Company drawing monthly remuneration of Rs.2.00 (two) lacs & above or Rs.24,00,000 (twenty-four) lacs and above in a year. COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988. Particulars with respect to conservation of energy Under 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 and forming part of the Directors' Report for the year ended 31st March, 2004 are annexed to this report as Annexure I. INDUSTRIAL RELATION The industrial relations during the year remain cordial and the Directors wish to place on record their appreciation for the services rendered by the Officers, Staff and Workers of the Company at all level. ACKNOWLEDGEMENT The directors would like to express their appreciation for the assistance and co-operation received from the various Departments of the Central and State Government, H.S.I.D.C. and the Banks. For and on behalf of the Board of Directors. Place: Delhi (G.L. AGARWAL) Date: 10.08.2004 CHAIRMAN Annexure to Director's Report Annexure 1 The companies (Disclosure of particular in the Report of Directors) Rule, 1988 A. CONSERVATION OF ENERGY a. All the machinery used is subject to a strict repair and maintenance. Further, the Maintenance Department has been instructed to take every necessary step for Energy Conservation. b. No Additional Investment has been made during the year for reduction of consumption of energy. B. TECHNOLOGY ABSORPTION We are now using indigenously available PP chips and Master Batches as, two of our principle raw materials, to the extent of 100%. C FOREIGN EXCHANGE EARNING AND OUTGO Particulars of Foreign Exchange earning and outgo are given in Schedule - Q. Para-C- Notes on Accounts. Form (A) (Form for disclosure of particulars with respect to conservation of energy) A. Power and Fuel Consumption Electricity Current Previous Year year A. Purchased Unit (KWH) NIL NIL Total Amount (Rs.) NIL NIL Rate per Unit (Rs.) NIL NIL B. Own Generation Through Diesel Generating Set Unit (KWH) 5557708.00 4823419.00 Total Cost (Rs.) 21728132.91 17632486.75 Units per Liter of Fuel 4.00 4.26 Cost per unit (Rs.) 3.91 3.65 C Consumption per Unit of Production Unit KG KG. Product Yarn Yarn Electricity (KWH) NIL NIL Fuel (Liters) 0.59 0.60 Management discussion and analysis 1. Industry scenario and development: The Textile Industries continued to play an important role in the Indian Economy recognizing this. The Government of India through its supportive policies as time and again encourage to strengthen Textile Industries to enable Up-gradation of Textile Product for indigenous use and export. The tough policies of the Government to subsidies of 5%. The interest payment by the Industries for the expansion, setting up of new plant including Modernization. 2. Company's Strength: Your company has further taken adequate steps in achieving high levels of production. The company has completed its expansion programme successfully during the year which it is hoped will boost company's production capacity substantially thus reduce cost of production and will make positive contribution to the company's profitability in the years to come. Your company's plant is checked at regular intervals for reliability and is geared up to meet the challenges in future. 3. Risks and Concerns: Your company perceives unfavorable and unclear Government policy as a major risk that confronts your company. Your company has been attempting to convert the various threats it envisaged into opportunities. 4. Company subsidiary, related Projects, Allied Business: The company has no subsidiary company. 5. Internal Control: The company ensures existence of adequate internal control to be followed by the executives at various level in the organization while operating managers, ensure compliance within their areas, 6. Human Resources: Your company's constant endeavor has been to attract, retain and nurture, human potential by developing a culture of human values. The purpose of human potential development is to bring in a sense of belongingness and feeling of ownership. Your company has during the previous year continued to have good relations with its employees. Cautionary Statement: The report may contain certain statements that the company believes are or may be considered to be "forward looking statements" that describes our objectives, plans or goals. All these "forward looking statements" are subject to certain risks and uncertainties, including but not limited to government action, economic development, risks inherent in the company's growth strategy and other materially from those contemplated by the relevant "forward looking statements."