KUMAR'S COTEX LIMITED ANNUAL REPORT 1999-2000 DIRECTORS' REPORT To, The Members, Your Directors have pleasure in presenting the 9th Annual Report of the Company together with the Audited Balance Sheet and statement of Pre- operative Expenditure during Construction period pending Capitalisation for the year ended 31st March 2000. PROJECT IMPLEMENTATION Though the Company has commenced partial production on 30th November 1998 and have also achieved the quality parameters, due to labour problem the Company has stopped the production. The Company has already installed preparatory spinning system viz. Blow room, carding, combing, simplex etc. The directors are pleased to inform you that the Company has recommenced the production with 5% of its installed capacity during the current financial year. During the year under review the company has not made sales. DIRECTORS Sri R.S. Rathore and Sri N S Sharma Directors of the Company, retires by rotation and being eligible offers themselves for reappointment. The Board wishes to place on record the appreciation for the services rendered by Sri S.K. Sharma, Director who has resigned from the Board w.e.f. 30-06-99. AUDITORS M/s. T.Raghavendra & Associates, Chartered Accountants, Auditors of the Company will retire at the ensuing Annual General Meeting and being eligible offer themselves for appointment. PARTICULARS OF EMPLOYEES None of the employees were in receipt of remuneration more than the limits prescribed U/s.217 (2A) of the Companies Act, 1956 read with the Companies (particulars of Employees) Rules, 1975. Hence the required information is not given. PUBLIC DEPOSITS During the year under review the Company has neither invited nor received any deposits from the Public. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO. As the Company is in the stage of implementation, the details required U/s. 217(1)(e) read with Companies (Disclosure of Particulars in the Report of Board of Directors) Rules 1988 of the Companies Act, 1956, is NIL during the year under review. ACKNOWLEDGEMENTS Your Directors take this opportunity to express their sincere thanks to the Industrial Development Bank of India, Canara Bank, Consultants and various Departments of the Central and State Government for their Continued support and co-operation. Our Directors also place on record their appreciation of all the employees for the sincere efforts put in by them for the progress of the project. FOR AND ON BEHALF OF THE BOARD KUMAR'S COTEX LIMITED PLACE: SECUNDERABAD SATISH KUMAR AGGARWAL DATE : 17th June, 2000 CHAIRMAN