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Karnavati Spinners Ltd.

BSE: 531113 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Karnavati Spinners Ltd
NSE 05:30 | 01 Jan Karnavati Spinners Ltd

Karnavati Spinners Ltd. (KARNAVATISPIN) - Director Report

Company director report

KARNAVATI SPINNERS LTD DIRECTOR'S REPORT To THE MEMBERS: Your Directors have pleasure in submitting ninth Annual Report and Audited Accounts of your Company for the year ended on 31st March, 1998. REVIEW OF WORKING: In view of recessionary trend in the industry, the turnover of the Company is reduced by about 10% over previous year. Further more, t interest expenses and other overheads increased sharply making the loss before depreciation to Rs. 183.91 lacs and after providing f depreciation of Rs. 26.21 lacs, the total loss comes to Rs. 210.12 lacs. FUTURE OUT LOOK: Due to technical problem in the machinery, the plant of the Company was shutdown for the period commencing from 22.4.89 to 22.5.98 a thereafter since 22.8.98. In the opinion of the management, this machine is to be replaced by new one and this requires some capital outlay of Rs. 125 lacs approximately For this, the Company has approached to the financial institutions / banks and on prima facie discussion with them, the Company has receive positive sign of financial arrangement for replacement of one machine. The negotiation for the same is under process and will be finalised very shortly. After installation of new machine, your directors do not foresee any hurdle barring unforeseen circumstances for the bright future. DEPOSITS The Company has accepted deposits under due compliance with the provisions of Section - 58 (A) of the Companies Act, 1956 read with the Companies (Acceptance of Deposits) Rules, 1975. PERSONNEL There are no employees drawing salary exceeding the limits specified under Section - 217 (2A) of the Companies Act, 1956 read with thE Companies (Particulars of Employees) Rules, 1975. PARTICULARS RELATING TO CONSERVATION OF ENERGY ETC. Informations pursuant to Section 217 1) (e) are given in Annexure 1. DIRECTORS Mr. Sandeep R. Goyal was redesignated as the Managing Director, A resolution to that effect is proposed for your approval. Mr. Akhilesh R. Goyal and Mr. Rajesh R. Goyal retires by rotation and being eligible, offers themselves for reappointment. AUDITORS M/s. Ashok Dhariwal & Co., Chartered Accountants, Ahmedabad retires at the Annual General Meeting and the Board recommends to reappoint them as auditors Or the year. AUDITORS REMARK As regards irregularity of payment in Provident Fund dues, the management has to state that the financial crisis in the industry has forced to do so. ACKNOWLEDGEMENTS Your Directors wish to place on record their appreciation for whole hearted Co-operation received from Financial Institutions, bankers and All the Employees. On behalf of the Board of Directors (Akilesh R. Goyal) Chairman Place : Ahmedabad Date : 31.10.98 ANNEXURE Technology Absorption, Research and Developments The Company does not have specific Research and Development department. However, the Company has quality control department to check the quality of products manufactured. The Company has not imported any technology. Foreign Exchange earnings and outgo: There was no Foreign Exchange Earnings & Outgo during the year. For, Karnavati Spinners Limited Chairman DATE : 31.10.98 PLACE: AHMEDABAD