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Directors Report of Hisar Spinning Mills Ltd.

Mar 31, 2014

Dear Members,

The Directors have great pleasure in presenting the 21st Annual Report together with the Audited Statement of Accounts of your Company for the year ended 31st March, 2014

FINANCIAL RESULTS : (Rs. in Lacs) Current Year Previous Year (2013-2014) (2012-2013)

Sales & Other Income 2116.37 1756.52

Profit Before Interest & Depreciation 281.63 364.74

Less Interest & Financial Exp. 34.38 44.05

Less Depreciation, 110.65 137.09

Profit Before Exceptional & Extra Ordinary Items 136.60 183.60

Exceptional Items 0.00 5.18

Extra Ordinary Items 0.00 (47.02)

Profit Before Tax 136.60 141.76

Provision for Tax 16.87 28.36

Profit After Tax 119.73 113.40

PAST PERFORMANCE

The Turnover and other income of the Company has increased by around 20.49%, during the year, as compared to previous year but profit before tax shows a decline of 25.60% over previous year, because of shrink in margins due to slowdown in economy. However, the company hopes to perform better in the coming years.

PARTICULARS OF EMPLOYEES

During the year there was no employee in respect of whom information as per section 217 (2A) of the Companies Act, 1956 is required to be given in the director''s report.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:

As required by the companies (Disclosure of particulars in the report of Board of Directors) Rules, 1988 the relevant data pertaining to conservation of energy, technology absorption and foreign exchange earning and outgo are given in annexure forming part of this report.

FIXED DEPOSITS:

The company has not accepted any deposit within the meaning of section 58-A of the companies Act, 1956, and the Companies (Acceptance of Deposits) Rules. 1975.

LISTING OF SECURITIES:

The Securities of the Company is listed on Stock Exchange at Mumbai. The Listing Fees have been paid up to 31 03 2015

INSURANCE:

All the properties and insurable interests of the company including Building, Plant & Machinery and Stock wherever necessary and to the extent required have been properly insured.

AUDITORS REPORT

The points stated in the Auditors Report are self explanatory & needs no comments.

DIRECTORS

Mr. M L. Kansal resigned from the directorship of the company w.e.f 31/03/2014. Your directors welcomed the contribution made by him during his tenure. Mrs Sapna Kansal was appointed as director to fill the casual vacancy caused by the resignation of Mr. M L Kansal. Your directors welcomed her appointment as director on the Board of the company. In accordance with the requirement of the Companies Act, 1956 and the Articles of Association of the Company Sh. Vikas Gupta & Mrs Sapna Kansal retires by rotation and being eligible offer themselves for re-appointment.

CORPORATE GOVERNANCE

The Corporate Governance Report is annexed herewith along with Auditor''s Certificate.

AUDITORS

The term of present Auditors of the company M/s. Jain & Anil Sood, Chartered Accountants, Ludhiana expires at the conclusion of the ensuing Annual General Meeting and they are eligible for reappointment.

COST AUDITORS'' APPOINTMENT

As per the requirement of the Central Government, and in pursuance of Section 233B of the Companies Act,1956 your company carries out an audit of cost records, Subject to the approval of the Central Government, your Director have appointed M/s Satpaul Saini & Associates, to audit the cost accounts of the company for the financial year 2014

DIRECTORS RESPONSIBILITY STATEMENT

(i) That in the preparation of the annual accounts, the applicable accounting standards had been followed.

(ii) That the directors had selected such accounting policies and applied them consistently and 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 Profit of the company for that year:

(iii) That the directors had taken proper and sufficient care 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) That the directors had prepared the annual accounts on a going concern basis.

Acknowledgement:

Yours Directors express their sincere appreciation for all around assistance, cooperation and guidance from the Lenders Punjab National Bank, Small Industries Development Bank of India (SIDBl) and State & Central Govt. Authorities.

Place : Chandigarh For and On Behalf of the Board Dated : 27.05.2014

(T.N. Goel) (Gopal Krishan Gupta) Director Managing Director


Mar 31, 2011

The Directors have great pleasure in presenting the 19th Annual Report together with the Audited Statement of Accounts of your Company for the year ended 31st March, 2011.

FINANCIAL RESULTS :

(Rs. in Lacs) Current Year Previous Year (2010-2011) (2009-2010)

Sales & Other Income 1311.84 1171.92

Profit Before Intt. & Depreciation 124.92 107.02

Less Interest & Financial Exp. 16.78 22.14

Less Depreciation 43.49 53.44

Profit Before Tax 64.65 31.44

Prov. For Income Tax/ FBT 12.19 4.87

Profit After Tax 52.46 26.57

PAST PERFORMANCE

The Turnover of the Company has increased by 12% as compared to previous year. The profit before tax has taken a quantum jump by 106% the previous year. This has been possible due to favorable market condition. The company expects even better results in the ensuing year.

MANAGEMENT DISCUSSION & ANALYSIS

The Spinning Yarn Industry is a lifeline in Textile Business of India. The majority of employment in India is absorbed by Textile Industry. Keeping in view of its importance the Govt. has constituted a separate Department under Textile Ministry. The Govt. has also constituted a Technology up gradation Fund (TUF) by which confessional Loan/subsidy is granted by Govt. through its various nodal agencies for up gradation in technology.

The Govt. of India has abolished the Quota Regime in Textile Sector which has generated further demand of the product in International as well as National Market, which will certainly improve the profitability of company.

The main Raw Material is cotton, which is based on Agricultural production of Cotton. The production is dependent on Monsoon. In Indian climatic condition the monsoon is always an unpredictable factor. Sometimes there is heavy rainfall & sometime the drought situation is created, which affects the production of Cotton to a great extent creating heavy fluctuation in raw material prices. However, the company could maintain the balance in such a situation & earned profit during the year.

PARTICULARS OF EMPLOYEES

During the year there was no employee in respect of whom information as per section 217 (2A) of the Companies Act, 1956 is required to be given in the director's report.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO :

As required by the companies (Disclosure of particulars in the report of Board of Directors) Rules, 1988 the relevant data pertaining to conservation of energy, technology absorption and foreign exchange earning and outgo are given in annexure forming part of this report.

FIXED DEPOSIT :

The company has not accepted any deposit within the meaning of section 58-A of the companies Act, 1956, and the Companies (Acceptance of Deposits) Rules, 1975.

LISTING OF SECURITIES :

The Securities of the Company is listed on Stock Exchange at Mumbai. The Listing Fees have been paid up to 31.03.2011.

INSURANCE :

All the properties and insurable interests of the company including Building, Plant & Machinery and Stock wherever necessary and to the extent required have been properly insured.

AUDITORS REPORT

The points stated in the Auditors Report are self explanatory & needs no comments.

DIRECTORS

In accordance with the requirement of the Companies Act, 1956 and the Articles of Association of the Company Sh.Vikas Gupta & Sh.M.L.Kansal retires by rotation and being eligible offer themselves for re- appointment.

CORPORATE GOVERNANCE

The Corporate Governance Report is annexed herewith alongwith Auditor's Certificate.

AUDITORS

The term of present Auditors of the company M/s. Jain & Anil Sood, Chartered Accountants, Ludhiana expires at the conclusion of the ensuing Annual General Meeting and they are eligible for reappointment.

(i) That in the preparation of the annual accounts, the applicable accounting standards had been followed.

(ii) That the directors had selected such accounting policies and applied them consistently and 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 Profit of the company for that year :

(iii) That the directors had taken proper and sufficient care 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) That the directors had prepared the annual accounts on a going concern basis.

Acknowledgement :

Yours Directors express their sincere appreciation for all around assistance, cooperation and guidance from the Banker Punjab National Bank and State & Central Govt. Authorities.

Place : Chandigarh For and On Behalf of the Board

Dated : 31.08.2011

(T.N. Goel) (Gopal Krishan Gupta)

Director Managing Director


Mar 31, 2010

The Directors have great pleasure in presenting the 18th Annual Report together with the Audited Statement of Accounts of your Company for the year ended 31st March, 2010.

FINANCIAL RESULTS :

(Rs. in Lacs) Current Year Previous Year (2009-2010) (2008-2009)

Sales & Other Income 1171.92 1181.79

Profit Before Intt. & Depreciation 107.02 85.40

Less Interest & Financial Exp. 22.14 19.07

Less Depreciation 53.44 44.62

Profit Before Tax 31.44 21.71

Prov. For Income Tax/ FBT 4.87 2.33

Profit After Tax 26.57 19.38

PAST PERFORMANCE

The Turnover is more or less same as compared to previous year. However, The Company has earned Profit Before Tax Rs.31.44 Lacs as against Rs.21.71 Lacs. The performance of the Company may be considered as satisfactory.

MANAGEMENT DISCUSSION & ANALYSIS

The Spinning Yarn Industry is a lifeline in Textile Business of India. The majority of employment in India is absorbed by Textile Industry. Keeping in view of its importance the Govt. has constituted a separate Department under Textile Ministry. The Govt. has also constituted a Technology upgradation Fund (TUF) by which concessional Loan/subsidy is granted by Govt. through its various nodal agencies for upgradation in technology.

The Govt. of India has abolished the Quota Regime in Textile Sector which has generated further demand of the product in International as well as National Market, which will certainly improve the profitability of company.

The main Raw Material is cotton, which is based on Agricultural production of Cotton. The production is dependent on Monsoon. In Indian climatic condition the monsoon is always an unpredictable factor. Sometimes there is heavy rainfall & sometime the drought situation is created, which affects the production of Cotton to a great extent creating heavy fluctuation in raw material prices. However, the company could maintain the balance in such a situation & earned profit during the year.

PARTICULARS OF EMPLOYEES

During the year there was no employee in respect of whom information as per section 217 (2A) of the Companies Act, 1956 is required to be given in the directors report.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO :

As required by the companies (Disclosure of particulars in the report of Board of Directors) Rules, 1988 the relevant data pertaining to conservation of energy, technology absorption and foreign exchange earning and outgo are given in annexure forming part of this report.

FIXED DEPOSIT :

The company has not accepted any deposit within the meaning of section 58-A of the companies Act, 1956, and the Companies (Acceptance of Deposits) Rules, 1975.

LISTING OF SECURITIES :

The Securities of the Company is listed on Stock Exchange at Mumbai. The Listing Fees have been paid up to 31.03.2010.

INSURANCE :

All the properties and insurable interests of the company including Building, Plant & Machinery and Stock wherever necessary and to the extent required have been properly insured.

AUDITORS REPORT

The points stated in the Auditors Report are self explanatory & needs no comments.

DIRECTORS

In accordance with the requirement of the Companies Act, 1956 and the Articles of Association of the Company Sh.Gopal Krishan Gupta & Sh.Rajesh Gupta retires by rotation and being eligible offer themselves for re-appointment.

CORPORATE GOVERNANCE

The Corporate Governance Report is annexed herewith alongwith Auditors Certificate.

AUDITORS

The term of present Auditors of the company M/s. Jain & Anil Sood, Chartered Accountants, Ludhiana expires at the conclusion of the ensuing Annual General Meeting and they are eligible for reappointment.

DIRECTORS RESPONSIBILITY STATEMENT

(i) That in the preparation of the annual accounts, the applicable accounting standards had

been followed.

(ii) That the directors had selected such accounting policies and applied them consistently

and 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 Profit of the company for that year :

(iii) That the directors had taken proper and sufficient care 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) That the directors had prepared the annual accounts on a going concern basis.

Acknowledgement :

Yours Directors express their sincere appreciation for all around assistance, cooperation and guidance from the Banker Punjab National Bank and State & Central Govt. Authorities.

Place : Chandigarh For and On Behalf of the Board

Dated : 03.09.2010 (T.N. Goel) (Gopal Krishan Gupta) Director Managing Director

 
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