Mazda Textile Industries Ltd.
||ISIN Code: N.A.
05:30 | 01 Jan
Mazda Textile Industries Ltd
05:30 | 01 Jan
Mazda Textile Industries Ltd
Mazda Textile Industries Ltd. (MAZDATEXTILE) - Director Report
Company director report
MAZDA TEXTILES INDUSTRIES LIMITED
Your Directors submit their EIGHTH Annual Report together with the audited
accounts for the year ended on 31st March, 1995.
Due to unprecedented flood situation in Surat City during September, 1994
the factory had to remain closed for nearly 3 weeks. By the time situation
was returning the normal due to wide spread of epidemic of plague the
upcountry workers and unskilled labourers migrated from Surat, which again
forced the company to abandone the production for 6 to 8 weeks. Due to
levey of excise duty at the yarn stage proposed in the Union Budget of
1994-95, texturisers in Surat had suspended the operations for 5/6 weeks in
March/April, 1995. The year under review remained extremely difficult which
is evident from the drastic drop in the turnover of the company which had
substantially gone up the previous year.
2. Future Prospects
The textile industry and particularly the texturising industry is passing
through a critical phase. The levy of excise duty at the yarn stage has
almost brought the industry to standstill. Over capacity in texturising
industry, recessionary trend in the art silk industry of Surat and the
liquidity of finance have hard hit the industry. There does not seem to be
immediate improvement in the performance of company and the industry in
Shri Sajay Deokar retires by rotation and being eligible offers himself for
4. Fixed Deposits
During the year under review Company has not accepted any deposit within
meaning of Section 58A of the Companies Act, 1956.
Industrial relations remained cordial during the year under report and the
Directors take this opportunity to express their appreciation for whole
hearted co-operation extended by them.
The properties of the Company are adequate insured.
7. Statutory Statements
Company does not have any employee drawing salary as stipulated under
Section 217(2A) of the Companies Act,1956 read with Companies (Particulars
of Employees) Rules, 1975.
The prescribed details as required under Section 217(1)(e) of the Companies
Act, 1956 read with Companies (Disclosures of particulars in the report of
Board of Directors) Rules, 1988, are given in annexure.
Your Directors regret their inability to recommended any dividend in view
of the losses. The company has put a rehabilitative scheme to the Union
Bank of India and to the Bank of Baroda. The main features of the scheme
are as under:
1. Sanction of adequate Working Capital.
2. Concessional Rate of interest by 2% below the normal rate on term loan
and as well as on Working Capital.
3. Reschedulement of Repayment of Term Loan after adequate moratorium.
4. Waiver of interest.
The company has become sick company as defined by Section 3(i)(o) of Sick
Industrial Companies (Special Provision) Act, 1985. Steps have been taken
to refer to the Board for Industrial and Financial Reconstruction as
required under Section 15 of the Said Act. Regarding Item No.4(xx) of the
Auditors' Report in respect of Sick Industrial Company the Explanation is
already given in this report.
Regarding Auditors note on non-provision of interest Rs.56,75,963/- on
Secured Loan, the Company has requested in rehabilitation scheme placed
before the Company's Banker for waiver hence same has not been provided.
You are requested to appoint auditors and fix their remuneration.
ANNEXURE TO THE DIRECTORS' REPORT
Additional information as required under the Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988.
[A] CONSERVATION OF ENERGY
(a) Energy conservation measures taken.
(b) Additional investment and proposals, if any, being implemented for
reduction of consumption of energy.
(c) Impact of the measures at (a) and (b) above for reduction of energy
consumption and consequent impact on the cost of production of goods.
(d) Total energy consumption and energy consumption per unit of production
as per form of the Annexure in respect of industries specified in the
[B] TECHNOLOGY ABSORPTION
(e) Efforts made in technology absorption as per Form "B" of the Annexure.
[C] FOREIGN EXCHANGE EARNINGS AND OUTGO
(f) Activities relating to exports, initiatives taken to increase exports,
development of new export markets for products and services, and export
(g) Total Foreign Exchange used and earned
(i) Use for
Import of Raw Materials.
Commission on Export and for Travelling etc.
(ii) Earned from
Export of manufactured goods (sanitarywares).
For and on behalf of the Board
Mazda Textile Industries Ltd.,
Dated: 24th July, 1995.
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