ANNUAL REPORT 1998-99
Viral Syntex Limited
To the Members of,
Viral Syntex Limited
The Directors have pleasure in presenting their Annual Reports and Accounts
for the year ended 31st March, 1999.
THE YEAR IN RETROSPECT:
The Sales for the year under review, were Rs. 113.53 Lakhs as against Rs.
2051.67 Lakhs for the previous financial year.
The Loss for the year was at Rs.688.63 Lakhs, in the previous year the loss
was Rs. 1345.60 Lakhs.
The Company had hardly any realisation in sales due to shut down of factory
consequent to shortage in working capital and therefore the Company could
not generate sufficient supply to meet the order. The situation got further
worsened due to recession in the Polyester Industry and no sign of revival
in the near future. However, the Company is confident that once the working
capital is unfreezed by the Bank, it hopes to improve the working as well
as profitability on full capacity utilisation.
The Company during the year has been able to develop innovative product
called 'ECOMAAST' which are PET based Master Batches. It has large Export
Market. The Company is likely to improve its margins on production of
'ECOMAAST' range of Master Batches which are used as coloring Agents for
producing Colored fibres, once regular commercial production is taken up.
The capacity utilisation and production came down drastically for reasons
such as recession in the Polyester Industry and lack of working capital
finance. The Company is making all efforts to improve the situation.
The Indian and Foreign Markets have bottomed out. The Company has since
received several large value Inland orders as well as Export Orders. The
Company is getting geared upto large volume production of profitable
Polyester Products. In the coming years the Company is certain to improve
the Sales & Profits, once it restarts its operations to a large extent.
The Company continued to export its products to many countries and the
exports for the year under review stood at Rs.20.00 lakhs. The Company has
taken several efforts to increase its exports and the same are expected to
bear fruits in the future workings.
TECHNOLOGY ABSORPTION, RESEARCH & DEVELOPMENT:
Constant upgradation of technology and innovative ideas turned into value
added products shall be the highlights of the R & D. The efforts of such
upgradation shall bear fruits in future. The R & D Centre is striving to
find many new products and their applications and processes. State-of-Art R
& D Center functioning at the plant at Ankleshwar was instrumental in
developing Core Spun Yarn which is in good demand and at good price
CONSERVATION OF ENERGY:
The Company has taken effective steps to conserve energy. Though the energy
cost is very minimal, the Company has already installed State-of-the art
energy monitoring devices so that the consumption of energy is minimised as
well as the sophisticated electronic equipment are protected from damage
due to wild fluctuations in power supply.
The Board of Directors wishes to express its appreciation to all the
employees of the Company for their outstanding contribution to the
operations of the Company as well as for the harmonious and cordial
relationship enjoyed during the year.
Mr. Ganesh Toshniwal, Chartered Accountants have been appointed as Auditors
as the erstwhile Auditors M/s. S.K. Agarwal & Associates, Mumbai have
resigned w.e.f. 18.08.1999.
For the continuous support extended by Company's Bankers, Bank of India,
Industrial Development Bank of India and other Financial Institution, the
Directors wish to thank them all and the Shareholders for their valuable
co-operation and dedicated support extended to the Company at all times.
For and on Behalf of the Board