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Chhabra Spinners Ltd.

BSE: 531653 Sector: Industrials
NSE: N.A. ISIN Code: INE420D01016
BSE 05:30 | 01 Jan Chhabra Spinners Ltd
NSE 05:30 | 01 Jan Chhabra Spinners Ltd

Chhabra Spinners Ltd. (CHHABRASPINNERS) - Director Report

Company director report

Chhabra Spinners Limited Annual Report 1998-99 DIRECTOR'S REPORT The Share-holders, Your directors have pleasure in presenting you the 10th Annual Report together,with Audited Accounts of the Company for the year ended 31st March, 1999 DIVIDEND: 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. OPERATING PERFORMANCE: 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. DEPOSITS: 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. DIRECTORS: 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: 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 prescribed amount. AUDITORS: M/s Rajendra S Goyal & Co., Chartered Accountants, Auditors of the Company retire and being eligible offer themselves for reappointment. PERSONNEL: The Board of Directors wish to place on record their appreciation of the dedicated services rendered by the employees of the Company. ACKNOWLEDGMENT: , 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 Place: Indore Date: 25/08199 (MANDEEP SINGH CHHABRA) CHAIRMAN ANNEXURE 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 ENERGY CONSERVATION: a) Your Company has taken steps wherever feasible for conservation of energy. 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 working results 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 product improvement. 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 Place: Indore Date: 25/08/99 (MANDEEP SINGH CHHABRA) CHAIRMAN