WOOLWAYS (INDIA) LIMITED
The Directors of your company have the pleasure in presenting their Second
Annual Report alongwith Audited Accounts of the Company for the period of
17 Months ended on 31 st March, 1997.
The Financial Figure of the period under review are given below :
(Rs. In Lacs)
PARTICULARS Accounting Period Accounting Period
ended on 31.03.97 ended on 31.10.95
(17 Months) (9 1/2 Months)
Profit before Interest, Depreciation
and Taxes 48.42 69.53
Less - Interest 27.12 17.43
- Depreciation 3.61 1.34
Profit before Tax 17.69 50.76
Less Provision for Tax 2.02 1.30
Net Profit Carried to Balance Sheet 15.67 49.46
Keeping in view the future funds requirement of the Company, no dividend
has been recommended for Payment this year.
PERFORMANCE OF THE COMPANY
During the period under review your Company achieved a turn over of Rs.
907.51 Lacs and Net Profit of Rs. 15.67 Lacs. Due to increasing worldwide
competition in the Knitted Garments Industry, Profitability has decreased .
During the period under review, the equity base of the Company was
augmented by way of fresh issue of 16,67,000 Equity Shares of Rs. 10/- each
for cash at per to part finance the expansion project. The public issue was
over-subscribed by 1.52 Times.
PROJECTIONS VS PERFORMANCE
Since no profitability projections were provided in the prospectus Date
21.05.96 issued by the Company, Hence as required by the clause 43 of the
listing, Comparison of actual results with the projections not feasible.
STATUS OF EXPANSION PROJECT
Company has successfully implemented Spinning and Knitting sections of the
expansion programme. Where as due to not receipt of a part of allotment
money, company has post pond its Tow to Top convertor section of the
projects. The Implemented sections has commenced commercial production. The
Director are very confident that the unit will operate at its full
capacity. Further company does not for see any marketing problem.
The delay in the implementation of project was due to reason beyond the
control of the management.
The Directors are confident of substantial overall growth of the company in
terms of production, turn over & profitability in the years to come.
Since the date of last Directors report, Sh. Vipan Choudhary was appointed
as Additional Director of the Company in terms of section 260 of the
Companies Act, 1956. Mr. Vipan Choudhary resigned from the Directorship of
the Company on 24.01.97. The Board of Directors place on record Its
appreciation for contributions made by Sh. Vipan Choudhary during his
tenure as a Director of the Company. The Board has inducted Sh. Manmohan
Kaura and Sh Kamaljit Verma as Additional Directors in terms of section 260
of the Companies Act, 1956, to hold offices up to the date of this Annual
General Meeting, it is proposed to appoint Sh. Manmohan Sh. Kamaljit Verma
as Directors on Board of the Company subject to retirement by rotation.
Notices under section 257 proposing their appointment has been received
from the members of the Company.
Sh. H. K. L. Nayar retires by rotation and being eligible offers himself
M/s Munish Chopra & Associates, Chartered Accountants, Ludhiana, the
statutory Auditors of the Company retire at the conclusion of this Annual
General Meeting of the Company and being eligible offer them selves for
appointment as Auditors to hold office until the conclusion of the next
Annual General meeting of the Company The Company has received Certificate
to the effect that their reappointment if made, would be within the limits
prescribed under Section 224 (I-B) of the Companies Act, 1956.
The Auditors' Report and notes on the accounts are self explanatory and not
therefore do call for further comments .
The Company is not required to maintain cost records under section 209 (I)
(d) of the Companies Act, 1956.
During the period under review the company did not invite or accept any
deposits from publics.
During the period under review the Industrial relations of the Company
remained very cordial through out the Accounting period and encouraging
results have been achieved with the whole hearted co-operation of employees
at all the levels.
PARTICULARS OF EMPLOYEES
None of the employees of the company is in receipt of the remuneration in
excess of the limits specified in section 217 (2A) read with companies
(Particulars of Employees) Rules 1975. As such the particulars of the
employees as per said section read with the said Rules and forming part of
the Directors' Report are Nil.
PARTICULARS ON CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN
EXCHANGE EARNING AND OUTGO IN TERMS OF SECTION 217 (1) (e) OF THE COMPANIES
(a) CONSERVATION OF ENERGY
At Woolways (India) Limited, as a part of contious and on going thrust on
conservation of energy, various measures such as prevention of low load
operators in transformers/motors, Prevention of idle running of Machines
etc. has been introduced during the period under review.
Further a continued effort is being made to conserve and optimise the use
of energy through installation of high efficiency motors and power saving
devices leading to reduced power consumption.
FORM - 'A'
A. POWER AND FUEL CONSUMPTION
CURRENT PERIOD PREVIOUS
(17 Months) (9 1/2
a) Purchased 415215 207073
Amount Rs. 913622 397580
Rate per unit Rs. 2.20 1.92
b) Own Generation
Through D.G. Set
Units (KWH) 129530 67493
Amount Rs. 313462 153210
Cost per unit Rs. 2.42 2.27
Due to numbes of products produced by the company, it is not feasible to
quantify consumption per unit of Production.
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION BY TECHNOLOGY ADAPTAION.
Your Company has the modern and the state of art technology for the
Manufacure/Fabrication & Hosiery Goods. The Company has necessary research
& quality control facilities.
C. FOREIGN EXCHANGE EARNINGS & OUTGO
Earned Rs. 72607293
Used Rs. 39115387
The Directors acknowledge the active co-operation and help received from
the Financial Institutions, Banks and Government Agencies, Shareholders and
other business constituents.
The Directors also wish to place on record their appreciation for the
contribution made by the employees at all levels and with whose continued
commitment and dedication the company could achieve the greater competitive
strength and growth.
FOR AND ON BEHALF OF THE BOARD
Place : New Delhi
Date : 01.04.97