Chhabra Spinners Limited
Annual Report 1998-99
Your directors have pleasure in presenting you the 10th Annual Report
together,with Audited Accounts of the Company for the year ended 31st
In view of lower cash accruals during the year under review and to meet the
working capital needs of the Company, your directors are not recommending
any dividend for the year 1998-99.
The production of yarn during the year under report has remained at almost
the same level as that in Previous year. The turnover during the year has
gone down to Rs. 1568 99 lacs as compared to Rs. 2678.73 Lacs in the
previous year The reduction in turnover is due to curtailment of cotton
ginning and oil milling activities during the current year as compared to
previous two accounting years since it is difficult for the company to
compete with new cotton ginning & oil mill units which enjoy benefit of
exemption from payment of Commercial Tax and Entry Tax.
The net profit after tax is lower during the current year due to reduction
in turnover and also due to obsolesce of some of carding machines, the yarn
yield and quality has also been affected. The Company is planning to
replace its obselete cards with new High Speed Cards in the current year
FUTURE OUT LOOK
The Overall scanario for Cotton Textiles remains gloomy due to fierce
competition in the international Market. The Cotton Crop during the
Current year is expected to be better A good Cotton Crop is expected to
help the Industry.
The Company has not accepted any fixed deposits from the Public within the
meaning of Section 58-A of the Companies Act, 1956 and the Companies
(Acceptance of Deposit) Rules, 1975.
Shri Gurdeep Singh Chhabra retire by rotation and being eligible offer
himself for reappointment.
Y2K RELATED ISSUE
Your Company does not face any majore Y2K related issued that could
significantly affect its operation. Your Directors are taking steps to
ensure that all data dependent systems are fully Y2K complient before the
end of Sep, 1999. Your company has contingency plans to ensure continuity
in its operation in the unlikely event of failure of any of the system
Additional information pursuant to Section 217(1)(e) of the Companies Act,
1956 is appended hereto and form part of this report
The information as required under Section 217(2A) of the Companies
Act,1956, read with Companies (particulars of employees) Rules, 1975 is not
given as there were no employee drawing a remuneration in excess of the
M/s Rajendra S Goyal & Co., Chartered Accountants, Auditors of the Company
retire and being eligible offer themselves for reappointment.
The Board of Directors wish to place on record their appreciation of the
dedicated services rendered by the employees of the Company.
Your Directors wish to thank all the shareholders, suppliers, customers,
Banks and Financial Institutions for their continued support and co-
operation extended by them
FOR AND ON BEHALF OF THE BOARD
Date: 25/08199 (MANDEEP SINGH CHHABRA)
INFORMATION PURSUANT TO SECTION 217 (1) (e) OF THE COMPANIES ACT, 1956
FORMING PART OF DIRECTORS REPORT FOR THE YEAR ENDED 31ST MARCH,1999
FORM - A
a) Your Company has taken steps wherever feasible for conservation of
b) No additional investment is proposed for any further reduction of
Conservation of Energy.
c) The impact on exact reduction in energy Consumption cannot be properly
evaluated at this stage.
FORM - B
a) Research & Development:
1. The Company is not carrying any R & D in specific area but is
continuously engaged in improvement of Plant and Machinery for better
2. Benefits derived as a result of the above R & D: N. A.
3. Future Plan of Action: At the moment, the Company has no specific areas
to carry R & D
4. Expenditure on R & D: N. A.
b) Technology Absorption, Adaptation and Innovation:
1. The technology is innovated on the basis of experience gained in the
working of the plant.
2. However, it is not possible to evaluate the exact cost reduction and
3. We don't have any imported technology and hence, the details required to
be given for imported technology is not applicable.
C) 1. Foreign Exchange Earning : NIL (NIL)
2. Foreign Exchange Outgo
- Import of spares (CIF Value) : NIL (Rs.128398/-)
FOR AND ON BEHALF OF THE BOARD
Date: 25/08/99 (MANDEEP SINGH CHHABRA)