Mar 31, 2015
The Directors have pleasure in presenting their 21ST Annual Report and Audited Accounts for the year ended 31st March 2015.
1. FINANCIAL RESULTS :
2014-15 2013-14 Rupees Rupees
Profit Before Taxation (976,383) 11,97,224
Current Tax - Current Year (4,00,000) --
Previous Year 369942
Deferred 7,34,519 1,25,000
MAT Credit - -
Profit After Taxation 641,864 702282
Balance brought forward from previous year 60118537 59416225
The Company has actively engaged in manufacturing of Socks and actively finding out the venues of e- commerce in the Fashions Industry.
No Dividend Recommended for the financial year.
The total turnover of the Company was Rs. 24.90 crores (previous year - Rs. 25.80 crores ). The loss before exceptional items and taxation was Rs.976383/-.
4. DIVISIONAL PERFORMANCE
The Company operates in only one Business Operations
The Company has increased its Authorized Capital of the Company during the financial year and also allotted 29,00,000 shares of Rs.5/- each at a premium of Rs.5/- each.
6. INTERNAL CONTROL SYSTEMS
Your Company has in place a robust Internal and Financial control systems which assists the Board and Management to fulfill business objectives, safeguards the shareholders' interest, financial transactions and company's assets. The primary objective of our internal control framework is to ensure that internal controls are established, properly documented, maintained and adhered to in each functional department for ensuring orderly and efficient conduct of business which includes proper use and protection of the Company's resources, accuracy in financial reporting, compliance with the statutes, timely feedback on achievement of operational and strategic goals. The Company's internal control system, supported by SAP ERP implemented a few years ago, is driven by well defined policies and procedures across its business divisions. In addition the Company is ISO 9001:2008 compliant which provides added comfort to our business partners and regulatory bodies.
The Company has an Internal Audit function which provides the Audit Committee and the Board of Doctors an independent, objective and assurance of the adequacy, efficiency and effectiveness of the Organization s risk management, internal and financial control and corporate governance processes. The Audit Committee/Board approved annual audit plan prepared in consultation with business heads and inputs obtained from the Company's statutory auditors ensures coverage of significant areas of operations with a risk based approach in order to conduct the audit in an efficient and timely manner. Process reviews for critical functions at all locations are performed in accordance with the audit plan. The function also assesses opportunities for improvement in business processes, systems and controls; provides recommendations to the Senior Management.
The Audit Committee of the Board of Directors regularly meets to review the significant audit findings action taken thereon, adequacy of internal and financial controls and implementation of various comprehensive policies. During the year, the Audit Committee met six times to review the reports submitted by the Internal Audit Department. The Audit Committee also regularly meets the Company's Statutory Auditors to ascertain their views on the business, adequacy of the internal control systems in the Company and their observations on the financial reports.
There are no outstanding public deposits at the beginning of the year under review. The Company has not accepted any public deposits during the year under review. The Board of Directors of the Company will consider accepting fresh public deposits at the appropriate time, in view of the regulatory changes under the Companies Act 2013.
The Company has paid up to date the Tax Liabilities.
The Company has no subsidiaries during the Financial year.
13.HUMAN RESOURCES/INDUSTRIAL RELATIONS :
The Manufacturing units has cortinued so maintain cordiel industrial relation, with low absenteeism while maintaining output levels.
Programswere conducted to improve the competency levels of workmen.
The Unit has its commitment to reuniting emplovee performance b, conducting employee of the Month awards to recognise exceptional performances by employees and inculcating a commitment to perform beyond the regular roles and responsibilities.
Various programmes have been conducted during the year covering Safety Awareness, Alteration Authority Job Safety Analysis (JSA), Hazard Identification, Risk Assessment, Risk Control (HIRARC). In addition internal / External Safety Audits; Safety Committee Meetings on regular basis; Job Study Analysis; HIRA / HAAZOP studies, SQC ; First Aid Training; Fire & Safety aspects and Emergency Rescue methods, have helpe o strengthen the overall safety and disaster management processes in the Hyderabad Factory.
Preventive Health Check-ups
As part of preventive healthcare, the Factory organized series of free medical check-ups, consisting of Diabetes, Cardiology, Orthopedic and General Medical Check up, to all the employees.
As part of enhanced security of the Unit and other assets of the, compound walls have been reinforced, height raised and fencing of barbed wire & concertina coils provided. Other measures include CC TV monitoring at Key areas especially magazines relaying of patrolling route, erection of watch towers and construction of additional Security Check posts, installation of tower flood lights for better night illumination, installation of guard monitoring systems for effective patrolling checks. Communication systems from magazines, watch towers through land lines have been streamlined. As such over the years considerable additions and precautions have been added to strengthen the Security of the Factory.
The Company believes in fair employment practices and is committed to provide an environment that ensures that every employee is treated with dignity and respect and afforded equitable treatment. The Company has a large proportion of women on the workforce and has adopted a Policy in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules there under. The Company has not received complaints in this regard, during the year.
14. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
The Company has not provided any Loans, Guarantees or Investments during the Financial year,
15. OUTLOOK FORTHE CURRENT YEAR, OPPORTUNITIES ANDTHREATS Overview of the Economy:
The merchandise exports from India have remained stagnant between US $ 302 to US $ 314 billion in the last three financial years. India's share is a mere 2% in Global trade, where as that of China is around 11.7% (2013). The Foreign Trade Policy 2015-2020 announced in April 2015 has set a target of 3.5% by 2020-21 for India.
In the last two/three years, the exporting units were big beneficiaries of Indian rupee depreciation. Since mid 2014, the rupee has been strengthening against Several Currencies, resulting in erosion of both realisation and profit for exporters. This is one cause for the deceleration in exports since mid 2014.
In Foreign Trade Policy 2015-2020 announced in April 2015, a new scheme named MEIS (Merchandise Exports From India Scheme) has been introduced where by the exporters will get incentive of 2% of FOB value in respect of merchandise falling under ITC (HS) code 61 - Knitted Apparels (including socks) exported to United Kingdom and United States of America etc (but not Switzerland and Gulf countries). This scheme is in substitution of earlier MLFP scheme (market linked focal product) which was off and on introduced and withdrawn.
Industry Structure and Development
The Indian textile industry, including hosiery and clothing, is one of the leading sectors of the Indian economy and contributes significantly to the country's industrial output (14%). It employs 35 million people in direct employment and earns much needed foreign currency with 17% of India's exports coming from Textiles and Garments. Overall, it contributes around 5% to India's GDP.
Textiles and apparel exported from India consume mainly indigenous inputs and are, therefore, big earners of net foreign exchange. This helps the country reduce its current account deficit.
Value of socks manufactured in India is estimated around 3000 crores per annum. Many major socks manufacturers in India are supplying their socks in the domestic market as licensees of international brands. Only a few supply under their own brand name.
Your Company is well poised to seize opportunities available in the sock knitting industry on account of its state-of-the-art production facilities, technical expertise, good quality culture and emphasis on product innovation and growth potential.
Your Company is meeting international quality norms of comfort, stretch, sizing, skin care and other parameters essential for inner wear intimate apparel. They also meet the fashion demands in terms of design, different knits and multiple shades. The socks manufactured by your Company are sold in Supermarket Chains and upper end Retail Stores.
The growing young middle-class population is a source of great potential and provides immense opportunities to spurt growth in the sock industry in the future.
For duty drawback on export shipments, "cap per unit" was raised upwards (more than double, say 2.25-2.50 Your Company is knitting super sophisticated design socks for a reputed international brand selling socks in big outlets at high prices. This gives great goodwill to your Company, as the name of your Company is mentioned on the band rolls of the socks of that brand.
All major overseas customers of your Company insist on social audits to be carried out in the factory at least once in two years, by the internationally acclaimed "Business Social Compliance Initiative Agencies". Such audits cover compensation to employees, health, safety, environment and management practices. New customers also insist on such audits to be conducted, before they start the business. The compliance of such audits to International Standards, brings healthy and ethical culture in working and creates goodwill of the Company among its clients. Your Company has successfully complied with many such audits and has thus ensured continuance of business with major clients for long periods.
Your Company derives about 91% of its revenue from the export market. Economic slowdown or decline in demand in the country of buyer of your Company's products will have adverse impact on the working of the Company.
In the international market, countries like Turkey have developed an edge over the Indian manufacturers due to reduced freight cost and much reduced delivery time. Besides, Turkey enjoys exemption of 10.6% custom duty in relation with EU countries. This has posed a threat to the Indian socks suppliers and may pressurise them to reduce prices and thereby squeeze their margins. Even Bangladesh enjoys exemption in import duty by virtue of its being a less developed country and exports goods at prices which Indian socks suppliers cannot compete.
The major challenge that the textile, apparel and hosiery industry faces is of ever increasing production costs arising out of rising wages, power and other overheads.
Rupee has become strong against several foreign currencies from mid 2014. This has already adversely impacted the topline and bottom line of the exporting units, when compared with their last two/three years' performances.
16 . DIRECTORS
During the year, Mrs. Sangeeta Sethia, was appointed as Additional Director of the Company in order to comply the requirements of Women Director she is proposed to be appointed as Director liable to retire by rotation.
Mrs. Sangeeta Sethia holds a Degree in Commerce, from Osmania University.
In accordance with the provisions of the Companies Act 2013 and the Articles of Association of the Company Mr. Prabhat Sethia retires by rotation at the 21st Annual General Meeting of the Company and is eligible for reappointment.
The number and details of the meetings of the Board and other Committees are furnished in the Corporate Governance Report.
The Independent Directors have furnished declaration of independence under Section 149 of the Companies Act 2013.
Familiarization Programme for Independent Directors
The Company familiarizes its Independent Directors with the Company, their roles, rights, responsibilities in the Company, nature of the industry in which the Company operates, business model of the Company, etc. through various programmes on a continuing basis. The Familiarisation programme for Independent Directors is disclosed on the Company's website.
Separate Meeting of Independent Directors
A separate meeting of Independent Directors of the Company, without the attendance of Non- Independent Directors and members of management, was held on 30th March, 2015, as required under Schedule IV to the Companies Act, 2013 (Code for Independent Directors) and Clause 49 of the Listing Agreement. At the Meeting, the Independent Directors:
* Reviewed the performance of Non-Independent Directors and the Board as a whole;
* Reviewed the performance of the Chairman of the Company, taking into account the views of Executive Director and Non-Executive Directors; and
* Assessed the quality, quantity and timeliness of flow of information between the Company management and the Board that is necessary for the Board to effectively and reasonably perform their duties.
All the Independent Directors attended the Meeting of Independent Directors Board & Directors' Evaluation
Pursuant to the provisions of the Companies Act 2013 and Clause 49 of the Listing Agreement, the Board, its Committees and the Directors have carried out annual evaluation / annual performance evaluation, covering various aspects of the Board's functioning such as adequacy of the composition of the Board and its Committees, Board culture, execution and performance of specific duties, obligations and governance The performance evaluation of the Independent Directors was carried out by the entire Board.
The Criteria for performance evaluation are follows:
Role & Accountability
* Understanding the nature and role of Independent Directors'position.
* Understanding of risks associated with the business.
* Application of knowledge for rendering advice to management for resolution of business issues.
* Offer constructive challenge to management strategies and proposals.
* Active engagement with the management and attentiveness to progress of decisions taken.
* Non-partisan appraisal of issues.
* Own recommendations given professionally without tending to majority or popular views.
Leadership & Initiative
* Heading Board Sub-committees.
* Driving any function or identified initiative based on domain knowledge and experience.
* Commitment to role & fiduciary responsibilities as a Board member.
* Attendance and active participation.
* Proactive, strategic and lateral thinking.
Directors' Appointment and Remuneration Policy
The Nomination and Remuneration Committee is responsible for developing competency requirements for the Board based on the industry and strategy of the Company and formulates the criteria for determining qualifications, positive attributes and independence of Directors in terms of provisions of Section 178 (3) of the Act and Clause 49 of the Listing Agreement. The Board has, on the recommendations of the Nomination & Remuneration Committee framed a policy for remuneration of the Directors and Key Managerial Personnel. The objective of the Company's remuneration policy is to attract, motivate and retain qualified and expert individuals that the company needs in order to achieve its strategic and operational objectives, whilst acknowledging the societal context around remuneration and recognizing the interests of Company's stakeholders.
The Non-Executive Directors (NED) are remunerated by way of Sitting Fee for each meeting attended by them and an annual commission on the profits of the Company. Commission to respective non-executive directors is determined on the basis of an objective criteria discussed and agreed upon by the Committee Members unanimously. NEDs are reimbursed any out of pocket expenses incurred by them in connection with the attendance of the Company's Meetings.
PARTICULARS OF EMPLOYEES AND REMUNERATION
The information required under Section 197 (12) of the Act read with Rule 5 of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is annexed as Annexure B. The information required under Rule 5 (2) and (3) of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is provided in the Annexure forming part of the Report.
None of the employees listed in the said Annexure is related to any Director of the Company.
17. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under Section 134(3)(m) of the Companies Act, 2013 read with Rule, 8 of the Companies (Accounts) Rules, 2014, is annexed herewith as 'Annexure C'.
18. INFORMATION ON STOCK EXCHANGES
The Equity shares of the Company are listed on BSE Limited and the Listing Fees have been paid to them up- to-date.
19. CORPORATE GOVERNANCE
A detailed report on the subject forms part of this report. The Statutory Auditors of the Company have examined the Company's compliance and have certified the same as required under the SEBI Guidelines. Such certificate is reproduced in this Annual Report.
20. DIRECTORS' RESPONSIBILITY STATEMENT
To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statements in terms of Section 134 of the Companies Act 2013:
(a) that in the preparation of the annual accounts/financial statements for the financial year ended 31st March 2015, the applicable accounting standards had been followed along with proper explanation relating to material departures, if any;
(b) that the accounting policies as mentioned in the financial statements were selected and applied consistently and reasonable and prudent judgments and estimates were made so as to give a true and fair view of the state of affairs of the company at the end of the financial year and of the profit and loss of the company for that period;
(c) that proper and sufficient care had been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act 2013 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;
(d) that the annual accounts were prepared on a going concern basis;
(e) that proper internal financial controls were in place and that such internal financial controls are adequate and were operating effectively; and
(f) that proper systems to ensure compliance with the provisions of all applicable laws were in place and that such systems were adequate and operating effectively.
Statutory / Financial Audit
M/s N G Rao and Associates, Chartered Accountants retire at the ensuing Annual General Meeting and are eligible for re-appointment. The Company has received confirmation that their appointment will be within the limits prescribed under Section 141 of the Companies Act, 1956.
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Company has appointed Mr. Vinod Sakaram, a Company Secretaries in Practice to undertake the Secretarial Audit of the Company. The Report of the Secretarial Audit Report is annexed herewith as 'Annexure D'.
There was no qualification, reservation or adverse remark or disclaimer in the auditors report or the secretarial audit report.
22. CORPORATE SOCIAL RESPONSIBILITY (CSR)
In compliance with Section 135 of the Companies Act 2013 and other applicable provisions, the Company has constituted Corporate Social Responsibility Committee consisting of Mr.D.P.Kelkar, Chairman of the Committee (Independent Director), Mr.Subhash Kelkar (Non Executive Director and Mr.Sanjay Bora (Independent Director) as the Members of the Committee. The Committee met once during the year and laid down the policy on Corporate Social Responsibility stating therein the objectives, implementation and other issues pertaining to the achievement of the CSR objectives of the Company.
The erstwhile Lubricants Division which was demerged from the Company, was the major profit generating Division. The remaining businesses of the Company do not have eligible profit on aggregate basis during the last three financial years. Filatex Fashions Ltd. (FFL) to whom the Lubricants Division was transferred, has undertaken to incur the CSR expenditure, treating the profits of the erstwhile Lubricants Division as that of GOLILfor CSR purposes. In view of these circumstances, and based on legal advice, the CSR Committee concurred that the Company would not incur mandatory CSR expenditure. The Company, however, makes reasonable contributions to CSR purposes.
The CSR Policy of the Company is displayed on the website of the Company. The Annual Report on CSR activities is annexed herewith as 'Annexure-A'.
23. VIGIL MECHANISM / WHISTLE BLOWER POLICY
In terms of the requirements of the Companies Act 2013 and Clause 49 of the Listing Agreement, the Company has a vigil mechanism to deal with instance of fraud and mismanagement, if any. The details of the vigil mechanism are displayed on the website of the Company. The Audit Committee reviews the functioning of the vigil / whistle blower mechanism from time to time. There were no allegations / disclosures/ concerns received during the year under review in terms of the vigil mechanism established by the Company.
24. RELATED PARTY TRANSACTIONS
All related party transactions / arrangements that were entered into during the financial year were on an arm's length basis and were in the ordinary course of business. There are no materially significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel which may have a potential conflict with the interest of the Company at large.
All related party transactions / arrangements are placed before the Audit Committee for prior approval, supported by a statement from the Management as to the adherence of arm's length basis and being the ordinary course of business.
The policy on Related Party Transactions as approved by the Board is displayed on the Company's website. None of the Directors has any pecuniary relationships or transactions vis-a-vis the Company.
Details of the transactions are provided in Form AOC-2 which is annexed as Annexure - F.
25. CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements of the Company prepared in accordance with relevant Accounting Standards (AS) viz. AS 21, AS 23 and AS 27 issued by the Institute of Chartered Accountants of India form part of this Annual Report.
26.SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS
There are no significant material orders passed by the Regulators / Courts which would impact the going concern status of the Company and its future operations. Pursuant to a complaint filed before the Competition Commission of India (CCI) by Coal India Limited, CCI had vide their Order dated 16th April 2012 held that the Company had, along with a few other explosive manufacturers, contravened the provisions of Section 3of the Competition Act 2002. The CCI had on that basis imposed a penalty on the Company of Rs.29.84crores. The Company has filed an Appeal before the Competition Appellate Tribunal (COMPAT) and the COMPAT had vide its Order dated 18th April 2013, reduced to Rs.2.89 crores; and a further Civil Appeal in the Supreme Court of India and the matter is subjudice. Based on expert legal advice, the Company believes that it has a good case and expects a favourable decision in the matter.
27. EXTRACT OF ANNUAL RETURN
The details forming part of the extract of the Annual Return in form MGT-9 is annexed herewith as 'Annexure G'
Your Directors would like to express their appreciation for the assistance and co-operation received from the financial institutions, banks, Government of India and various State Government authorities and agencies, customers, vendors and members during the year under review. Your Directors also wish to place on record their deep sense of appreciation for the committed services of all employees of the Company.
For and on behalf of the Board of Directors
Place : Hyderabad Prabhat Sethia Date -.September 02, 2015 Managing Director
Mar 31, 2014
The Directors have pleasure in presenting the 20th Annual Report of the Company for the financial year ended 31st March 2014.
Your directors express their inability to recommend any dividend for the financial year 2013-2014.
Your Company has not accepted any deposits falling within the meaning of Sec.58A of the Companies Act, 1956 read with the Companies (Acceptance of Deposits) Rules, during the financial year under review.
The equity shares of your company are listed on Bombay Stock Exchange Limited.
CODE OF CONDUCT
The Code has been circulated to all the members of the Board and Senior Management and the compliance of the same has been affirmed by them. A declaration signed by the Managing Director is given in Annexure.
M/s. N.G. Rao & Associates, Chartered Accountants, the Statutory Auditors of the Company retire at the conclusion of the ensuing Annual General Meeting and have confirmed their eligibility by submitting a Certificate under Section 139 of the Companies Act, 2013 and willingness to accept office, if re- appointed. Hence M/s. N.G. Rao & Associates, are hereby recommended for re- appointment as Statutory Auditors of the Company till the conclusion of the fourth consecutive Annual General meeting.
DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to the requirement Under Section 217 (2AA) of the Companies Act 1956, with respect to the Directors' Responsibility Statement, it is hereby confirmed by the Board that:
i) In the preparation of the annual accounts, the applicable accounting standards have been followed.
ii) Appropriate accounting policies have been selected and applied them consistently and have made judgment and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the loss of the company for the financial year ended 31st March, 2011.
iii) Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities.
iv) Directors had prepared the annual accounts on a going concern basis.
MANAGEMENT DISCUSSION AND ANALYSIS
Management Discussion and Analysis (MDA) of the Company for the year under review is attached to and forms part of this report.
PARTICULARS OF EMPLOYEES
Your Company has no employee whose salary exceeds the limits prescribed under Section 217 (2A) of the Companies Act, 1956.
Information pursuant to the companies (Disclosure of particulars in the report of the Board of Directors) Rules, 1988.
A. CONSERVATION OF ENERGY
(a) Energy Conservation measures taken: Your Company's operations are not energy intensive. Adequate measures have been taken to conserve energy wherever possible by using energy- efficient computers and purchase of energy efficient equipment.
(b) Additional investments and proposals, if any, being implemented for reduction of consumption of energy: Nil
(c) Impact of the measures (a) and (b) above for energy consumption and consequent impact on the cost of production of goods: Nil
B. TECHNOLOGY ABSORPTION
Research and Development (R & D)
1. Specific areas in which R & D carried out by the Company
The company continues to focus on R & D activities for developing and improving the quality and enhancing the benefits by adding new machines and technoiogy
2. Benefits derived as a result of the R & D
Research and development of new services & processes will continue to be of importance to your company.
3. Future plan of Action
The Company continues to strive for development of new products and improving the existing ones in order to meet the changing requirements and to cater to customer needs.
4. Expenditure on R & D
The company has not incurred any capital expenditure except a small amount towards salaries related to R & D
5. Technology Absorption, Adaptation and Innovation: Company is planning to negotiate a new brand name.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO CORPORATE GOVERNANCE
The Report on Corporate Governance along with the certificate from the Statutory Auditors certifying the compliance of Corporate Governance as per Clause 49 of the Listing Agreement with the Stock Exchanges is included in the Annua! Report.
Your Directors are pleased to place on record their sincere appreciation to the Company s Bankers, employees, customers, suppliers and shareholders for their valuable support and co-operation.
DECLARATION BY MANAGING DIRECTOR OF AFFIRMATION BY DIRECTORS AND SENIOR MANAGEMENT PERSONNEL OF COMPLIANCE WITH THE CODE OF CONDUCT
I Prabhat Sethia , Managing Director of the Company do hereby declare that the directors and senior management of the Company have exercised their authority and powers and discharged their duties and functions in accordance with the requirements of the code of conduct as prescribed by the company and have adhered to the provisions of the same.
Place : Hyderabad For and on behalf of the Board of Date : 03.12.2014 Directors of Filatex Fashions Limited
Prabhat Sethia Managing Director
Mar 31, 2010
The Directors Have pleasure in presenting the Sixteenth Annual Report of the Company together with Audited Annual accounts for the year ended 31st March, 2010
1. Financial Results:
Net Sales 3847.10 3870.76
Increase/Decrease in Stock 10.01
Other Income 0.78 0.72
Manufacturing/Operating Expenses 3737.91 3575.55
Profit before Financial Expenses & Depreciation 109.97 269.17
Interest/Financial Costs 1.81 0.11
Depreciation - 43.57
Preliminary Expenses written off - -
Net Profit (Loss) after Financial Expenses & 22.21 225.49 Depreciation
2. BUSINESS REVIEW:
The sales of the Company declined slightly to Rs. 3847.89 Lakhs from previous year Rs. 3 871.49 lakhs with Net profit of Rs. 22.21 Lakhs. The Company, in spite of tough competition in industry for export of textiles and turmoil after recovery from recession started, has been able to maintain adequate sales. The procurement of raw material for manufacture of textile raised and due to high manufacturing cost, coupled with lower margins on trading of textile related products
3. FUTURE OUTLOOK:
The Company is planning to increase the installed capacity for socks manufacturing and upgradation of plant & machinery and for that purpose, has procured new machines. The Companys efforts in trading of textile intermediary products like petrochemical, polyurethane, and other plastic products which enhances the scope of business to other industries like automobile ,electronics are being accepted through which the Company can scale up its sales and diversify its risk , which act as a cushion in case of decline in one industry and can dilute adverse effect.
The Auditors M/s N.G.Rao & Associates ,Chartered Accountants, Hyderabad, who have been appointed by shareholders resolution dated 04.12.2010, shall hold office upto conclusion of the ensuing Annual General Meeting. The Board recommends their reappointment for the year 2010- 2011.
The observations made by the Auditors in their report read with the Notes on Accounts are self explanatory and do not require any comments from Directors.
5. FIXED DEPOSITS :
Your Company has not accepted any fixed deposit from the Public or its shareholders during the year under the review.
6. DIRECTORS RESPONSIBILITY STATEMENT: In accordance with the provisions of Section 217(2AA) of the Companies Act, 1956, your Directors state:
(i) That in the preparation of the Annual accounts, the applicable accounting standards have been followed.
(ii) That your Directors have selected such accounting policies and applied them consistently and made Judgement and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit & loss of the Company for that period.
(iii) That your Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of your Company and for preventing and detecting fraud and other irregularities.
(iv) That your Directors have prepared the Annual Accounts on a going concern concept.
7. PARTICULARS OF EMPLOYEES:
During the year under review, there were no employees drawing salaries equal or more than the limits laid under Section 217(2A) read with the Companies (Particulars of Employees) Rules, 1975 as amended.
8. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS & OUTGO:
The details of energy conservation, technology absorption and foreign exchange earnings and outgo as required under Section 217(1 )(e) of the Companies Act, 1956 read with the Companies( Disclosure of Particulars in the Report of Board of Directors) Rules 1988 are given in the Annexure forming part of this report.
There are no subsidiaries to the Company as on date of the report.
10. CORPORATE GOVERNANCE CODE :
The Code of Corporate Governance promulgated by Securities & Exchange Board of India continues to be implemented by your Company. The Report on Corporate Governance and other related information is annexed hereto. The Compliance Certificate on Corporate Governance has been received from the Statutory Auditors.
11. CODE OF CONDUCT:
The Company has adopted a uniform Code of Conduct for Directors and Senior Management and above Officers level to ensure ethical standards and ensure compliance to the laid down standards.
Your Directors take this opportunity to express their grateful appreciation for the Co-operation and assistance by Central and State Governments, Banks, Raw material suppliers and business associates as well as shareholders. Your Directors also place on record their appreciation for the devoted services rendered by all employees.
For and on behalf of the Board of Directors
Place: Hyderabad ( Prabhat Sethia) ( Raghu Raj)
Date: 06.12.2010 Managing Director Director