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Woolways (India) Ltd.

BSE: 532075 Sector: Industrials
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Woolways (India) Ltd
NSE 05:30 | 01 Jan Woolways (India) Ltd

Woolways (India) Ltd. (WOOLWAYSINDIA) - Director Report

Company director report

1997 WOOLWAYS (INDIA) LIMITED DIRECTORS' REPORT 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. FINANCIAL RESULTS 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 . RESOURCE MOBILISATION 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. DIRECTORS 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 for re-appointment. AUDITORS 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. AUDITORS REPORT The Auditors' Report and notes on the accounts are self explanatory and not therefore do call for further comments . COST RECORDS The Company is not required to maintain cost records under section 209 (I) (d) of the Companies Act, 1956. FIXED DEPOSITS During the period under review the company did not invite or accept any deposits from publics. INDUSTRIAL RELATIONS 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 ACT, 1956. (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 PERIOD 31.03.97 31.10.95 (17 Months) (9 1/2 Months) 1. Electricity a) Purchased 415215 207073 units (KWH) 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 ACKNOWLEDGEMENTS 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 RAKESH NAYAR (Managing Director) Place : New Delhi Date : 01.04.97