Annual Report 1999-2000
TEXPORT TEXTILES LIMITED
DIRECTORS REPORT TO THE MEMBERS
The Director are hereby present the 9th Annual Report and Accounts for the
year ended 31st March, 2000
The directors are pleased to inform you that the new project at Surat
started commercial production from the 15th of Jan. 2000, the unit is
presently exporting about 45 containers per month and the same is expected
to increase significantly on receipt of additional spares and balancing
equipment that is lying at port. This is the largest unit in Asia in terms
of weaving capacity under single roof. The Towel Export in the next
Calender year 2001 is expected to cross Rs. 150 Crore and the management is
already in the process of expanding the capacity and diversifying into
production of Bath mats and other tufting articles, which is expected to
give big boost to Exports as the company will be the only producer of such
articles on a large scale. The directors envisage an additional turnover of
100 crores for the expansion project in the first year itself.
During the year the company has been sanctioned a term loan of Rs. 26 crore
from financial institutions and availed of Rs. 10 Crore before March 2000,
the said funds have been utilised towards the new unit of TerryTowel at
Further the management is planning to expand and diversify the companies
product range in order to gain unshakeable foothold in the export market,
in line with the larger objectives of consolidation and restructuring it is
necessary to sell off the unit at Navi Mumbai and utilise the proceeds for
reducing the higher cost loans, this will add to the overall profitability
of the company.
During the earlier year the company had repaid the secured loan of ICICI of
Rs. 450 lacs, which was secured by charge over the fixed assets of the
company and additionally by corporate guarantees given by Texport
Industries Ltd. and Rajesh Garments Pvt. Ltd., which have been released. In
lieu of the release of these guarantees the outgoing promoters and their
associate concerns have agreed to waive their unsecured to the tune of Rs.
34.5 lacs. With the permission in preceding AGM.
CHANGE THE NAME OF COMPANY
After getting the approval from Members in the last AGM the name of the
Company was approved for change by the Registrar of Companies as "SHEENA
TEXTILES LTD." During the year 2000- 2001 the Company name be changed
titled as "SHEENA TEXTILES LTD." (Formerly known as TEXPORT TEXTILES
LIMITED) and cut off date will be informed to the interested parties well
The company has not invited or accepted any deposit from the public during
the year, except interest free deposits of Rs. 699.52 lacs from partnership
firms in which the directors are interested as partners. Further the
company has availed Term loan from IDBI to the tune of Rs. 1000.00 Lacs
during the year.
The term of the following additional directors terms expires on the date of
the AGM, who are eligible for reappointment as regular directors and in
respect of whom the company has received notices proposing them as
Shri Ramesh Kumar Chugh.
Shri Luvkesh Chaudhary.
Shri Eric Loges.
Shri Satish Kumar Chugh who retires by rotation, being eligible has offered
himself for reappointment.
Shri Gautam Dutta was also appointed as an Nominee director during the year
by IDBI, the Board of directors ratified the same on 29th Aug. 2000.
The Auditors M/s. M.M. Chaturvedi & Co., hold office until the conclusion
of the ensuing Annual General Meeting. The Company has received a notice
from some shareholders for appointment of M/s. Balram & Associates,
Chartered Accountants as auditors in place of the retiring auditors, since
they are the auditors of all the other group companies and are based at
Panipat which is the main financial and marketing stronghold of the group,
and from where the companies are controlled. Certificate from M/s. Balram &
Associates has been received to the effect that their appointment, if made
would be within the prescribed limits under section 224(1 B) of the
company's act 1956. Conservation of energy and technology absorption,
foreign exchange earnings and outgo:
Conservation of energy:
The management has taken effective steps for periodical preventive
maintenance to ensure optimum power utilization and avoid wastage of fuel
The company has successfully installed and operated the Stabuli Software
for Loom Operation during the year apart from this the company has not been
employing any imported foreign technology during the year.
Foreign exchange earnings and outgo:
(Rs. In (00) as Annexure
The computer systems of your company are Y2K compliant and the cost thereof
has been met from the internal resources of your company.
Particulars of employees:
There was no employee who was employed throughout the year under review and
was in receipt of remuneration aggregating to not less than 600000.00 or
employed for part of the year and were in receipt of remuneration
aggregating to not less than 50000.00 per month.
The Directors wish to take this opportunity to thank the Industrial
Development Bank of India, Punjab National Bank, Maharashtra Industrial
Development Corporation, State Bank Of Patiala, Canara Bank, the investing
public and employee for their invaluable co-operation and support to the
By Order of the Board of Director
Place: MUMBAI RAMPRAKASH CHUGH
Dated: 30th Aug 2000 Chairman & Managing Director