Mar 31, 2015
Dear Members,
The Directors of your Company are pleased to present their 39th Annual
Report on the business of the Company together with the Audited
Accounts of the Company for the year ended on 31st March, 2015.
1. FINANCIAL RESULTS
The Company's financial performance for the year under review along
with previous years are given hereunder:
(Rs Lacs)
Particulars' 2014-15 2013-14
TotalRevenues" 11201.69 18904.94
Profit/(loss) before interest & depreciation (3403.16) (4485.94)
Less :Financial Expenses 27.00 48.39
Profit/(loss) before depreciation (3430.16) (4534.33)
Less: Depreciation 257.50 331.34
Profit after depreciation and interest (3687.66) (4865.67)
Net profit/(loss) after tax (3687.66) (4865.67)
Amount transferred to General Reserve -- --
Earning per Share (Basic) (50.37) (65.16)
Earning per Share (Diluted) (20.32) (42.59)
2. YEAR IN RETROSPECT
M/s Malwa Cotton Spinning Mills Ltd (MCSML), based on its audited
balance sheet as at 31st March,2013 had filed a reference under Sick
Industrial Companies (Special provisions) Act 1985 and the reference
was registered on 24th May, 2013 with Board for Industrial & Financial
Reconstruction (BIFR).
The Company has recorded net loss before depreciation, interest & tax
of Rs 3403.16 lac as compared to previous year loss before
depreciation, interest & tax of Rs.4485.94 lac.
The performance of the Company deteriorated due to volatility and
uncertainty in cotton prices, sudden glut in the synthetic yarn market
, closure of dyeing units resulting in accumulation of fabric stock and
above all undue delay in disbursing of need based funds by lenders in
the past proved fatal & detrimental. Poor export demand and excess
spinning capacity further resulted in accumulation of stock, hence
crash of prices in the domestic market. Increase in power cost, high
cost of labour and general increase in input costs resulted in poor
performance of the company. These factors adversely affected the
capacity utilization of the Company.
During the year, the Company has achieved total production of 36.59 lac
kgs for all types of yarns compared to previous year's production of
66.48 lac kgs. The Cotton Yarn production was 4.63 lac kgs against 8.56
lac kgs in the previous year and other yarns production was 31.96 lac
kgs against 57.92 lac kgs. in the previous year. Thread production of
10.71 lac kgs was also achieved by the company against 19.57 lac kgs in
the previous year.
TURNOVER
During the year, your Company has recorded gross sales of Rs 11071.25
lac against Rs. 18838.16 lac in the previous year. The Company has
achieved Yarn sale of Rs 5667.41 lac, Thread sale of Rs 5080.38 lac and
others of Rs 323.46 lac in the current year ended on 31st March, 2015
against sale of Yarn Rs. 10306.65 lac , Thread Rs.7893.91 lac and
others Rs. 637.60 lac in the previous year. Export of Yarn was at
Rs.754.39 lac (CIF) against Rs. 677.56 lac (CIF) in the previous year.
BARNALA UNIT
The Barnala unit has achieved production of 18.37 lac kgs of Yarn and
capacity utilization at minimal levels in the current year.
PAONTA SAHIB UNIT
The Paonta Sahib unit was operating at low capacity utilization and had
production of 8.97 lac kgs of yarns.
MACHHIWARA UNIT
The Worsted Unit had achieved production of 9.25 lac kgs during the
year and the unit was operating at low capacity utilization .
3. SHARE CAPITAL
The paid up Equity Share Capital as on 31st March,2015 was Rs 790.29
lacs and Preference Share Capital was Rs.2724.61 lacs. During the year
under review, the Company has not:
a) bought back any of its securities
b) issued any Sweat Equity Shares
c) issued any Bonus Shares to the existing shareholders of the Company
d) issued any Equity Shares under the Employees Stock Option Plan
during the year under review
4. DIVIDEND
No Dividend was declared for the current financial year due to loss
incurred by the Company and accumulated losses.
5. TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCTION AND PROTECTION
FUND
The provisions of Section 125(2) of the Companies Act, 2013 do not
apply as there was no dividend declared and paid last year.
6. DEPOSITS
The Company has not accepted any deposits from the public during the
year under review and as such, there are no outstanding deposits in
terms of the Companies (Acceptance of Deposits) rules, 2014.
7. DIRECTORS
a) Mr. Rishi Oswal & Mr. Rahul Oswal retire at the ensuing Annual
General Meeting and are eligible for re- appointment as Directors
subject to retirement by rotation. They offer themselves for the
re-appointment.
Board Evaluation
Pursuant to the provisions of the Companies Act, 2013 and Clause 49 of
the Listing Agreement, the Board has carried out an annual evaluation
of its performance, the directors individually, as well as the
evaluation of the working of its Committees. At the meeting of the
Board all the relevant factors that are material for evaluating the
performance of the individual Directors, the Board and its various
committees were discussed in detail.
A separate exercise was carried out to evaluate the performance of
individual Directors including the Chairman of the Board, who were
evaluated on parameters such as level of engagement and contribution,
independence of judgment, safeguarding the interest of the Company and
its minority shareholders etc. The performance evaluation of the
Chairman and non-independent directors was also carried out by the
independent Directors at their separate meeting. The Directors
expressed their satisfaction with the evaluation process.
b) Meetings
During the year four Board Meetings were convened and held. The details
thereof are given in the Corporate Governance Report. The intervening
gap between the meetings was within the period prescribed under the
Companies Act, 2013.
8. KEY MANAGEMENT PERSONNEL
The information required pursuant to Section 197 read with Rule 5 of
the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014 is appended as an Annexure -I and forms an integral part of
this report.
9. REMUNERATION POLICY
The Board on the recommendation of the Nomination and Remuneration
Committee shall review and approve the remuneration payable to the
Directors ,Key Managerial Personnel and Senior Management. The key
provisions of Nomination and Remuneration policy are appended as an
Annexure-II to the Board's report.
10. STATUTORY AUDITORS
M/s. S.C.VASUDEVA & Co.,( Firm Registration Number: 000235N) Statutory
Auditors of the Company hold office until the conclusion of the ensuing
Annual General Meeting and being eligible, offered themselves for
re-appointment. As required under the provision of Section 139 of the
Companies Act, 2013, the Company has obtained a written confirmation
from M/s. S.C.VASUDEVA & Co., and received a certificate from the above
Auditors to the effect that their appointment, if made, would be in
conformity with the limits specified in the said section.
11. AUDITORS' REPORT
The Auditors' Report on the Accounts is self-explanatory and required
no comments except (i) non- disclosure of segment results separately in
respect of sewing thread segment in accordance with Accounting Standard
(AS)-17. Results of the operations of the sewing thread segment is
compiled to the extent it could be computed from the books of account
however results of the textile segment (yarn & sewing thread ) is
disclosed as per Accounting Standard (AS-17) (ii) Due to recession
there is delay in realization of debtors and the Company is settling
with parties for its recovery and confident of recovery of debtors in
respect of which balances were not confirmed and however the company
has made a provision for doubtful debts for Rs.1691.28 lac in respect
of these debtors during the year.
12. COST AUDIT
Cost audit for the financial year 2014-15 is not applicable to the
Company as per Notification No.G.S.R.425[E] dated 30th June2014 issued
by the Ministry Of Corporate Affairs, hence no cost auditor was
appointed for cost audit purpose.
13. SECRETARIAL AUDIT
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 M/s Rajeev Bhambri & Associates,
a firm of Company Secretaries in practice (C.P.No 9491 ) to undertake
the Secretarial Audit of the Company. The Secretarial audit report for
the financial year ended 31st March, 2015 is annexed herewith as
Annexure-III to this report. The Secretarial Audit report does not
contain any qualification, reservation and adverse remarks.
14. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION
186 OF THE COMPANIES ACT, 2013
There were no loans, guarantees or investments made by the Company
under Section 186 of the Companies Act, 2013 during the year under
review and hence the said provision is not applicable.
15. DIRECTORS' RESPONSIBILITY STATEMENT
The Board Of Directors acknowledge the responsibility for ensuring
compliance with the provisions of Section 134(3) read with Section
134(5) of the Companies Act, 2013 in the preparation of annual accounts
for the year ended on 31st March,2015 and state :
a) That in preparation of the Annual Accounts, the applicable
Accounting Standards have been followed along with proper explanation
relating to material departures.
b) That the Directors had selected such Accounting Policies and applied
them consistently and made judgments 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 or
Loss of the Company for that period.
c) 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.
d) That the Directors have prepared the Annual Accounts on a going
concern basis.
e) That the Directors had laid down internal financial controls to be
followed by the company and such internal financial controls are
adequate and operating effectively. That the Directors had devised
proper systems to ensure compliance with the provisions of all
applicable laws and that such systems were adequate and operating
effectively.
16. CORPORATE GOVERNANCE
As per Clause 49 of the Listing Agreement, a separate Report on
Corporate Governance together with Management Discussion and Analysis
and certificate from Company's Auditors is annexed and forms part of
the report.
17. AUDIT COMMITTEE & RISK MANAGEMENT
The company has duly constituted Audit Committee, the scope of which is
quite comprehensive and is in conformity with the provisions of the
Companies Act, 2013 and revised clause 49 of the listing agreement.
The composition of the Audit Committee is given in Corporate Governance
Report.
All the recommendations of the Audit Committee were accepted by the
Board.
RISK MANAGEMENT
The Audit Committee has also been assigned the responsibility for
monitoring, and reviewing risk management. The Committee identifies,
review and mitigate all elements of risks which the Company may be
exposed to. The Board also reviews the risk management assessment and
minimization procedures.
18. DETAILS OF ESTABLISHMENT OF VIGIL MECHANISM/WHISTLE BLOWER POLICY
The Company has adopted Whistle Blower Policy/vigil mechanism for
directors and employees to report concerns about unethical behavior,
actual or suspected fraud, or violation of the Company's Code of
Conduct and Ethics.
19. DETAILS OF POLICY DEVELOPED AND IMPLEMENTED BY THE COMPANY ON ITS
CORPORATE SOCIAL RESPONSIBILITY INITIATIVES
The Company has not developed and implemented any Corporate Social
Responsibility initiatives as the said provisions are not applicable.
20. RELATED PARTY TRANSACTIONS
There was no contract or arrangement made with related parties as
defined under Section 188 of the Companies Act, 2013 during the year
under review.
21. DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS
OR COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY'S
OPERATIONS IN FUTURE
There are no significant orders passed by the Regulators/Courts which
would impact the going concern status of the Company and its future
operations.
22. DECLARATION BY INDEPENDENT DIRECTORS
Necessary declarations have been obtained from the Independent
Directors under Section 149(7) of the Companies Act, 2013 except Mr
Arun Kumar Ahluwalia.
23. INTERNAL FINANCIAL CONTROL SYSTEM
The Company has in place internal financial control system,
commensurate with the size and complexity of its operations to ensure
proper recording of financial and operational information and
compliance of various internal controls and other regulatory and
statutory compliances. The internal auditor monitors and evaluates the
efficacy and adequacy of internal control systems in the Company. Based
on the report of the internal auditor, respective departments undertake
corrective action in their respective areas and thereby strengthen the
controls. Significant audit observations and corrective actions thereon
are presented to the Audit Committee of the Board.
24. SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES
The Company does not have any Subsidiary, Joint venture or Associate
Company.
25. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information pertaining to conservation of energy, technology
absorption, Foreign exchange Earnings and outgo as required under
Section 134 (3)(m) of the Companies Act, 2013 read with Rule 8(3) of
the Companies (Accounts) Rules, 2014 is furnished in Annexure-IV.
26. MATERIAL CHANGES AND COMMITMENT IF ANY AFFECTING THE FINANCIAL
POSITION OF THE COMPANY OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR
TO WHICH THIS FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT
The Company has shut down the production activity during the year at
Paonta Sahib unit.
Except closure of Paonta Sahib unit, No material changes and
commitments affecting the financial position of the Company occurred
between the ends of the financial year to which these financial
statements relate on the date of this report.
27. EXTRACT OF ANNUAL RETURN
The details forming part of the extract of Annual Return in form MGT-9
is annexed herewith as Annexure -V
28. ACKNOWLEDGEMENTS
The Board of Directors place on record its appreciation for the
valuable assistance, support and guidance extended to the Company by
the various Government Departments, Organisations and Agencies. The
Company also acknowledges the support and co-operation received from
dealers, Retailers, agents and other business partners for excellent
support received from them. The Board also wishes to express its deep
gratitude for the continued support from its shareholders and the
employees and appreciate the co-operation and unstinted support
extended to the Company.
Place: Ludhiana For and on behalf of Board
Date : 30.05.2015
JANGI LAL OSWAL
Chairman-cum-Managing Director
Mar 31, 2014
Dear Members,
The Directors of your Company are pleased to present their 38th Annual
Report on the business of the Company together with the Audited
Accounts of the Company for the year ended on 31st March, 2014.
(Rs Lacs)
FINANCIAL RESULTS 2013-14 2012-13
Profit/(Loss) before Financial Expenses
& Depreciation (4485.94) (12489.14)
Financial Expenses 48.39 3295.43
Depreciation 331.34 387.10
Profit/(Loss) before tax (4865.67) (16171.67)
Profit/(Loss) for the year after tax
adjustments (4865.67) (16171.67)
YEAR IN RETROSPECT
The net worth of the company has been eroded due to continuous losses
suffered by the company and there was negative net worth as at 31st
March, 2013 resulting in the Sickness of the company. M/s Malwa Cotton
Spinning Mills Ltd (MCSML), based on its audited balance sheet as at
31st March, 2013 had filed a reference under Sick Industrial Companies
(Special provisions) Act 1985 and the reference was registered on 24th
May, 2013 with Board for Industrial & Financial Reconstruction (BIFR).
The Company has recorded net loss before depreciation, interest & tax
of Rs 4485.94 lac as compared to previous year loss before
depreciation, interest & tax of Rs.12489.14 lac.
Due to sluggish demand in domestic and export markets for the last 3-4
years, the performance of the company deteriorated resulting in losses
of the Company. There was delay in realization of old debtors due to
prevailing recession in the market, thus affecting the liquidity and
working capital cycle. Due to high inflation, the disposable income
skewed and lesser consumption pattern is being formed and resulting
tight money market conditions. These factors adversely affected the
capacity utilization of the Company which fell to 23.79% during the
year 2013-14. The company could not absorb its fixed manufacturing
cost due to lower capacity utilization which adversely affected the
efficiency of the company.
During the year, the Company has achieved total production of 66.48 lac
kgs for all types of yarns compared to previous year''s production of
102.02 lac kgs. The Cotton Yarn production was 8.56 lac kgs against
35.75 lac kgs in the previous year and other yarns production was 57.92
lac kgs against 66.27 lac kgs. in the previous year. Thread production
of 19.57 lac kgs was also achieved by the company against 21.14 lac kgs
in the previous year.
TURNOVER
During the year, your Company has recorded gross sales of Rs 18838.16
lac against Rs. 31324.25 lac in the previous year. The Company has
achieved Yarn sale of Rs 10306.65 lac, Thread sale of Rs 7893.91 lac
and others of Rs 637.60 lac in the current year ended on 31st March,
2014 against sale of Yarn Rs. 19092.02 lac , Thread Rs.8569.82 lac and
others Rs. 3662.41lac in the previous year. Export of Yarn was at
Rs.677.56 lac (CIF) against Rs. 1058.65 lac (CIF) in the previous year.
BARNALA UNIT
The Barnala unit has achieved production of 23.88 lac kgs of Yarn and
capacity utilization of 6.77% in the current year.
PAONTA SAHIB UNIT
The Paonta Sahib unit was operating at capacity utilization of 48.11
%and had production of 37.22 lac kgs of yarns.
MACHHIWARA UNIT
The Worsted Unit had achieved production of 5.38 lac kgs during the
year and the unit was operating at capacity utilization of 21.51 %.
FIXED DEPOSITS
The Company has not accepted/renewed any deposits from the public
during the year under review under section 58A of the Companies Act,
1956.
INDUSTRIAL RELATIONS
Human Resources is the most significant and valuable assets of the
company. Industrial relations at all units of the company remain
cordial and in harmony during the year. The Company is very thankful to
its employees for the wholehearted support during the year.
COMPLIANCE OF LISTING AGREEMENT
The Equity Shares of the Company are listed on Bombay Stock Exchange
and National Stock Exchange of India Ltd. The Company will pay Annual
Listing Fee to both the Exchanges in due course.
CORPORATE GOVERNANCE
As per Clause 49 of the Listing Agreement, a separate Report on
Corporate Governance together with Management Discussion and Analysis
and certificate from Company''s Auditors is annexed and forms part of
the report.
AUDITORS
M/s. S.C.VASUDEVA & Co., Statutory Auditors of the Company hold office
until the conclusion of the ensuing Annual General Meeting and being
eligible, offered themselves for re-appointment.
COST AUDITORS
The due date of filing Cost Audit Report is as under:
i) For the year 2012-13 on 27th September, 2013 and was filed on 21st
Sept, 2013.
ii) For the year 2013-14 on 27th September, 2014 and is expected to be
filed in due course of time.
AUDITORS'' REPORT
The Auditors'' Report on the Accounts is self-explanatory and required
no comments except i) non-disclosure of segment results separately in
respect of sewing thread segment in accordance with Accounting Standard
(AS)-17. Results of the operations of the sewing thread segment is
compiled to the extent it could be computed from the books of account
however results of the textile segment (yarn & sewing thread ) is
disclosed as per Accounting Standard (AS-17)
ii) Due to recession there is delay in realization of debtors and the
Company is settling with parties for its recovery and confident of
recovery of debtors in respect of which balances were not confirmed and
however the company has made a provision for doubtful debts for
Rs.1017.51 lac in respect of these debtors during the year.
DIRECTORS'' RESPONSIBILITY STATEMENT
Directors'' Responsibility Statement pursuant to the provisions of
section 217(2A) of the Companies Act, 1956 is attached as per Annexure
''C'' and forms part of the report.
DIRECTORS
Mr. Rishi Oswal & Mr. Rahul Oswal retire at the ensuing Annual General
Meeting and are eligible for re-appointment as Directors subject to
retirement by rotation. They offer themselves for the re-appointment.
Mr. Atul Saxena , nominee of IFCI Ltd. and Mr.Sanjay Kumar suroya
(Nominee of IDBI) ceased to be Director of the Company w.e.f.
25.09.2013 and 24.09.2013 respectively. The Board places on record its
appreciation for their services rendered during their tenure as
Directors of the Company.
ACKNOWLEDGEMENT
The Board of Directors place on record its appreciation for the
valuable assistance, support and guidance extended to the Company by
the Financial Institutions and Banks. The Company also acknowledges the
support and co-operation received from dealers, retailers and agents
for promoting various products of the Company. The Board also wishes to
express its deep gratitude for the continued support from its
shareholders and the employees and appreciate the co- operation and
unstinted support extended to the Company.
DISCLOSURE OF PARTICULARS
Statement of particulars of employees pursuant to Section 217(2A) of
the Companies Act, 1956 is attached as per Annexure ''A''.
Information as per the Companies (Disclosure of particulars in the
Report of Board of Directors) Rules, 1988 relating to conservation of
energy, technology absorption, foreign exchange earning and outgo is
given in Annexure ''B'' forming part of this Report.
ANNEXURE ''A'' TO THE DIRECTORS'' REPORT
PARTICULARS OF EMPLOYEES
Statement of Particulars of Employees under Section 217(2A) of the
Companies Act, 1956 read with Companies (Particulars of Employees)
Rules, 1975 and forming part of Directors'' Report for the year ended
31.03.2013
1. The appointment of Mr. Jangi Lal Oswal is on contractual basis.
2. Mr. Jangi Lal Oswal is related to Mr. Rishi Oswal and Mr. Rahul
Oswal, Directors of the Company.
3. The remuneration is upto 31-12-2013 includes salary, cash allowances
and/or perquisite value of other non cash perquisites.
Directors'' Responsibility Statement
Pursuant to the provisions of section 217(2AA) of the Companies Act,
1956 it is hereby confirmed:
1. That in preparation of the Annual Accounts, the applicable
Accounting Standards have been followed along with proper explanation
relating to material departures.
2. That the Directors had selected such Accounting Policies and applied
them consistently and made judgments 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 or
Loss of the Company for that period.
3. 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.
4. That the Directors have prepared the Annual Accounts on a going
concern basis.
Place: Ludhiana For and on behalf of Board
Date : 30.05.2014
JANGI LAL OSWAL
Chairman-cum-Managing Director
Mar 31, 2013
Dear Members,
The Directors of your Company are pleased to present their 37th Annual
Report on the business of the Company together with the Audited
Accounts of the Company for the year ended on 31st March, 2013.
(Rs. Lacs)
FINANCIAL RESULTS 2012-13 2011-12
ProfitV(Loss) before Financial
Expenses & Depreciation (12489.14) 2919.65
Financial Expenses 3295.43 3241.58
Depreciation 387.10 434.32
Profit/(Loss) before tax (16171.67) (756.25)
Prof it/(Loss) for the year
after tax adjustments (16171.67) (756.25)
YEAR IN RETROSPECT
The Company has recorded net loss before depreciation, interest & tax
of Rs 12489.14 lac as compared to previous year profit before
depreciation, interest & tax of Rs. 2919.65 lac. The year 2012-13 was
very erratic both on demand front and price front in the international
and domestic market. Global economic slowdown has adverse impact on the
performance of the company. Also volatile & high raw material cost,
power cost, labour cost, forex movements and financial cost have given
negative impact on the profitability of the company. The company
incurred net loss of Rs. 16171.67 lac during the year and net worth of
the company was eroded and there was negative networth of Rs. 13504.88
Lac resulting in the Sickness of the Company. During the year the
company had sold old items of inventories and slow moving not useable
and not readily saleable items of inventories at loss. The net worth
has been eroded due to continuous losses suffered by the company. The
financial performance of the company over the year has shown declining
trend. The performance of the company deteriorated as selling prices
decrease was more than the decrease in raw material prices and also due
to prevailing recession in global market, weak export market, labour
shortage, high financial and power cost etc. Due to recession in the
market, there is delay in realization of old debtors and affecting
liquidity and working capital cycle and the company is in the process
of settling disputes with parties and hopeful of recovery.
During the year, the Company has achieved total production of 102.02
lac kgs for all types of yarns compared to previous year''s production
of 116.45 lac kgs. The Cotton Yarn production was 35.75 lac kgs against
38.73 lac kgs in the previous year and other yarns production was 66.27
lac kgs against 77.72 lac kgs in the previous year. Thread production
of 21.14 lac kgs was also achieved by the company against 20.83 lac kgs
in the previous year.
TURNOVER
During the year, your Company has recorded gross sales of Rs 31324.25
lac against Rs. 39823.24 lac in the previous year. The Company has
achieved Yarn sale of Rs. 18787.84 lac, Thread sale of Rs 8569.82 lac
and others of Rs. 3966.59 lac in the current year ended on 31st March,
2013 against sale of Yarn Rs. 25012.93 lac , Thread Rs. 8793.49 lac and
others Rs.6016.82 lac in the previous year. Export of Yarn was at
Rs.1058.65 lac (CIF) against Rs. 2540.17 lac (CIF) in the previous
year. BarnalaUnit
The Barnala unit has achieved production of 43.92 lac kgs of Yarn and
capacity utilization of 27.27% in the current year. Paonta Sahib Unit
The Paonta Sahib unit was operating at capacity utilization of 49.55%
and had production of 39.27 lac kgs of yarns. Machhiwara Unit
The unit had achieved production of 18.83 lac kgs of value added
products during the year.
The Worsted unit was operating at capacity utilization of 21.35%.
FIXED DEPOSITS
The Company has not accepted/renewed any deposits from the public
during the year under review under section 58A of the Companies Act,
1956. INDUSTRIAL RELATIONS
Human Resources is the most significant and valuable asset of the
company. Industrial relations at all units of the company remain
cordial and in harmony during the year. The Company is very thankful to
its employees for the wholehearted support during the year.
COMPLIANCE OF LISTING AGREEMENT The Equity Shares of the Company are
listed on Bombay Stock Exchange and National Stock Exchange of India
Ltd. The Company will pay Annual Listing Fee to both the Exchanges in
due course. CORPORATE GOVERNANCE
As per Clause 49 of the Listing Agreement, a separate Report on
Corporate Governance together with Management Discussion and Analysis
and certificate from Company''s Auditors is annexed and forms part of
the report. AUDITORS
M/s. S.C.VASUDEVA&Co., Statutory Auditors of the Company hold office
until the conclusion of the ensuing Annual General Meeting and being
eligible, offered themselves for re- appointment. COST AUDITORS
M/s KHUSHWINDER KUMAR & Co., Cost Auditors of the Company whose term of
office has expired on 31-03-2013, being eligible for re-appointment
offered themselves for the same and are re-appointed as Cost Auditors
of the Company for the year 2013-14.
The due date of filing Cost Audit Report is as under:
i) For the year 2011-12 was 28th February, 2013 and was filed on 20th
February, 2013. ii) For the year 2012-13 is 27th September, 2013 and
is expected to be filed in due course of time.
AUDITORS'' REPORT
The Auditors'' Report on the Accounts is self-explanatory and required
no comments except i) non-disclosure of segment results separately in
respect of sewing thread segment in accordance with Accounting Standard
(AS-17). Results of the operations of the sewing thread segment is
compiled to the extent it could be computed from the books of account
however results of the textile segment (yarn & sewing thread) is
disclosed as per Accounting Standard (AS-17). ii) The slow moving items
of inventories to the tune of Rs. 236.14 lac have been valued at cost
as the market value is not ascertainable iii) Due to recession there is
delay in realization of debtors and the Company is settling with
parties for its recovery and confident of recovery of debtors in
respect of which balances were not confirmed and therefore, no
provision has been made for doubtful debts in respect of these debtors
as doubtful amount can not be ascertained at this stage. DIRECTORS''
RESPONSIBILITY STATEMENT Directors'' Responsibility Statement pursuant
to the provisions of section 217(2A) of the Companies Act, 1956 is
attached as per Annexure ''C and forms part of the report. DIRECTORS
Mr. Surinder Kumar Vig & Mr. Gyaneshwar Bansal retire at the ensuing
Annual General Meeting and are eligible for re- appointment as
Directors subject to retirement by rotation.
They offer themselves for the re-appointment. Mr. Surendra Prasad
Bhatt, nominee of IFCI Ltd. and Mr.Yashpal Barar, nominee of PNB
ceased to be Director of the Companyw.e.f. 14.02.2013
and20.10.2012respectively.The Board places on record its appreciation
for their services rendered during their tenure as Directors of the
Company. Mr. Arun Kumar Ahluwalia, nominee of PNB, and Mr. Atul
Saxena, nominee of IFCI Ltd., were appointed as Director on the Board
of the Company w.e.f 20.10.2012 and 14.02.2013 respectively. They are
welcome on the Board.
ACKNOWLEDGEMENT
The Board of Directors place on record its appreciation for the
valuable assistance, support and guidance extended to the Company by
the Financial Institutions and Banks. The Company also acknowledges the
support and co-operation received from dealers, retailers and agents
for promoting various products of the Company. The Board also wish to
express its deep gratitude for the continued support from its
shareholders and the employees and appreciate the co- operation and
unstinted support extended to the Company.
By order of the Board
PLACE :LUDHIANA POOJA DAMIRMIGLANI
DATED: 15.04.2013 Company Secretary
Mar 31, 2012
Dear Members,
The Directors of your Company are pleased to present their 36th Annual
Report on the business of the Company together with the Audited
Accounts of the Company for the year ended on 31st March, 2012.
(Rs. Lacs)
FINANCIAL RESULTS 2011-12 2010-11
Profit/(Loss) before Financial
Expenses & Depreciation 2919.65 3747.35
Financial Expenses 3241.58 2911.33
Depreciation 434.32 473.31
Profit/(Loss) before tax (756.25) 362.71
Profit/(Loss) for the year after
tax adjustments (756.25) 362.71
YEAR IN RETROSPECT
The Company has recorded profit/(loss) before depreciation, interest &
tax of Rs. 2919.65 lac as compared to previous year Rs. 3747.35 lac.
Cotton Textile Industry is obsessed with many problems. Outdated
machinery, low labor productivity and slowdown of global economic
scenario has adversely affected the Indian Textile Industry. This has
made textile mills inefficient and uneconomic due to which many units
became sick and were closed down.
During the year, the Company has achieved total production of 116.45
lac kgs for all types of yarns compared to previous year's production
of 200.71 lac kgs. The Cotton Yarn production was 38.73 lac kgs against
107.05 lac kgs in the previous year and other yarns production was
77.72 lac kgs against 93.66 lac kgs. in the pervious year. Thread
production of 20.83 lac kgs was also achieved by the company against
28.67 lac kgs in the previous year.
TURNOVER
During the year, your Company has recorded gross sales of Rs 39823.24
lac against Rs. 45504.28 lac in the previous year. The Company has
achieved Yam sale of Rs 25012.93 lac, Thread sale of Rs.8793.49 lac and
others of Rs. 6016.82 lac in the current year ended on 31st March, 2012
against sale of Yarn Rs. 31509.09 lac, Thread Rs. 9829.63 lac and
others Rs. 4165.56 lac in the previous year. Export of Yarn was at
Rs.2540.16 lac (CIF) against Rs. 4095.00 lac (CIF) in the previous
year.
Barnala Unit
The Barnala unit has achieved production of 52.92 lac kgs of Yams and
capacity utilization of 43.14% in the current year. The plant is
equipped with latest technology machines to meet the demand of Domestic
as well as International Markets.
Paonta Sahib Unit
The Paonta Sahib unit was operating at capacity utilization of 46.16%
and had production of 45.60 lac kgs of yarns.
Machhiwara Unit
The Company's strength lies in value added products. The unit had
achieved production of 20.83 lac kgs of value added products during the
year.
The Worsted unit was operating at capacity utilization of 35.25% and
had production of 17.93 lac kgs of yarns.
FIXED DEPOSITS
The Company has not accepted/renewed any deposits from the public
during the year under review under section 58A of the Companies Act,
1956. INDUSTRIAL RELATIONS
Your Company has cotdra A vetetoris with employees ar- rro man-day was
lost during the year. The Company is very thankful to its employees for
the wholehearted support in achieving optimum level of efficiency.
COMPLIANCE OF LISTING AGREEMENT The Equity Shares of the Company are
listed on Bombay Stock Exchange and National Stock Exchange of India
Ltd. The Company has paid Annual Listing Fee to both the Exchanges for
the Financial Year 2012-13 and have fully complied with the clauses of
Listing Agreement.
CORPORATE GOVERNANCE
As per Clause 49 of the Listing Agreement, a separate Report on
Corporate Governance together with Management Discussion and Analysis
and certificate from Company's Auditors is annexed and forms part of
the report.
AUDITORS
M/s. S.C. Vasudeva & Co., Statutory Auditors of the Company hold office
until the conclusion of the ensuing Annual General Meeting and being
eligible, offered themselves for re- appointment.
COST AUDITORS
M/s Khushwinder Kumar & Co., Cost Auditors of the Company, being
eligible for re-appointment offered them self for same and are
reappointed as Cost Auditors of the Company for the year2012-13.
The due date of filing Cost Audit Report is as under: i) For the year
2010-11 was on 28th September, 2011 and was filed on 28th August, 2011.
ii) For the year 2011-12 is on 27th September, 2012 and is expected to
be filed in due course of time.
AUDITORS'REPORT
The Auditors' Report on the Accounts is self-explanatory and required
no comments except i) non-disclosure of segment results separately in
respect of sewing thread segment in accordance with Accounting Standard
(AS-17). Results of the operations of the sewing thread segment is
compiled to the extent it could be computed from the books of account
however, results of the textile segment (yarn & sewing thread) is
disclosed as per Accounting Standard (AS-17). ii) The slow moving items
of inventories to the tune of Rs.2198 lac have been valued at cost as
the market value is not ascertainable iii) The Company is confident of
recovery of debtors in respect of which balances were not confirmed and
therefore, no provision has been made for doubtful debts in respect of
these debtors as doubtful amount can not be ascertained at this stage.
DIRECTORS' RESPONSIBILITY STATEMENT
Directors' Responsibility Statement pursuant to the provisions of
section 217(2A) of the Companies Act 1956 is attached as per Annexure
'C and forms part of the report.
DIRECTORS
Mr. Rishi Oswal & Mr. Rahul Oswal retire at the ensuing Annual General
Meeting and are eligible for re-appointment as Directors subject to
retirement by rotation They offer themselves for the re-appointment.
Mr. T. Harikrishnan. nominee of IFCI Ltd. ceased to be Director of the
Company w.e.f 14.02.2012. The Board places on record its appreciation
for his services rendered during his tenure as Director of the Company.
Mr Surendra Prasad Bhatt, nominee of IFCI Ltd., was appointed as
Director on the Board of the Company. He is welcome on the Board.
ACKNOWLEDGEMENT
The Board of Directors place on record its appreciation for the
valuable assistance, support and guidance extended to the Company by
the Financial Institutions and Banks. The Company also acknowledges the
support and co-operation received from dealers, retailers and agents
for promoting various products of the Company. The Board also wish to
express its deep gratitude for the continued support from its
shareholders and the employees and appreciate the co- operation and
unstinted support extended to the Company.
DISCLOSURE OF PARTICULARS
Statement of particulars of employees pursuant to Section 217(2A) of
the Companies Act, 1956 is attached as per Annexure 'A'.
Information as per the Companies (Disclosure of particulars in the
Report of Board of Directors) Rules, 1988 relating to conservation of
energy, technology absorption, foreign exchange earning and outgo is
given in Annexure 'B' forming part of this report
ANNEXURE A' TO THE DIRECTORS' REPORT
PARTICULARS OF EMPLOYEES
Statement of Particulars of Employees under Section 217(2A) of the
Companies Act, 1956 read with Companies (Particulars of Employees)
Rules, 1975 and forming part of Directors' Report for the year ended
31.03.2012
Name Age Date of Qualifi- No. of Designation &
Employment cation Years of Nature of Duties
Experience
Mr. Jangi 60 09 4 1980 B.AIInd 42 Chairman-cum-
Lal Oswal Year Managing Director
Name Remunaration Last Designation Period of
(In Lacs) Employment With Last Service
Employer With Last
Empolyer
Mr.Jangi 25.94 Oswal
Woollen Commercial 9
Lal Oswal Mills Ltd. Manager
1. The appointment of Mr. Jangi Lai Oswal is on contractual basis.
2. Mr. Jangi Lai Oswal is related to Mr. Rishi Oswal and Mr. Rahul
Oswal, Directors of the Company.
3. The remuneration includes salary, cash allowances and perquisite
value of other non cash perquisites.
For and on behalf of the Board
PLACE: LUDHIANA JANGI LAL OSWAL
DATED: 30.05.2012 Chairman-cum-Managing Director
Mar 31, 2010
The Directors of your Company are pleased to present their 34th Annual
Report on the business of the Company together with the Audited
Accounts of the Company for the year ended 31st March, 2010.
(Rs. Lac)
FINANCIAL RESULTS 2009-10 2008-09
Profit/(Loss) before financial 1707.08 (477.89)
expenses & depreciation
Financial expenses 2855.33 3007.71
Depreciation 581.22 738.07
Profit/(Loss)before tax (1729.47) (4223.67)
Profit/(Loss) for the year after (1724.98) (4371.88)
tax adjustments
YEAR IN RETROSPECT
The company has recorded profit/(loss) before depreciation, interest &
tax of Rs. 1707.08 lac as compared to previous year Rs. (477.89) lac.
Indian textile industry is passing through difficult period due to
global recession, reductions in inventories by global retail giants,
less export orders, higher price of raw materials like cotton and
infrastructure bottlenecks such as power, transportation and higher
financial cost etc. Due to global financial meltdown, growth of the
Indian textile industry was adversely affected and sustainability is
the need of the hour in the times of adversity. Exporters were finding
it difficult to convert inquiries into orders as they have been
adversely hit by rising raw material prices and the rupee appreciation.
The Board is pleased to inform that the restructuring proposal
sanctioned under Corporate Debt Restructuring is implemented, but there
was delay in the release of additional funds as per restructuring
scheme. Profitability of your company has improved in comparison to
previous year, but capacity utilization and production has decreased
due to delay in release of funds as per scheme, power cuts, labour
shortage and adverse textile scenario. During the year, the company has
achieved total production of 205 lac kgs for all types of yarns
compared to previous years production of 222 lac kgs. The cotton yam
production was 114 lac kgs against 121 lac kgs in the previous year and
other yarns production was 91 lac kgs against 101 lac kgs. in the
pervious year. Thread production was 34 lac kgs against 40 lac kgs in
the previous year.
TURNOVER
During the year, your company has recorded gross sales of Rs.43241 lac
against Rs. 45890 lac in the previous year. The company has achieved
yarn sale of Rs. 23344 lac, Thread sale of Rs. 10850 lac and others of
Rs.9047 lac in the current year ending 31st March, 2010 against sale of
yarn Rs. 25245 lac, Thread Rs.11226 lac and others Rs.9419 lac
respectively in the previous year. Export of yarn was at Rs. 4312 lac
(CIF) against Rs.9371 lac (CIF) in the previous year.
BARNALAUNIT
The Barnala unit has achieved production of 111.37 lac kgs of Yarn and
capacity utilization of 85% in the current year. The plant is equipped
with latest technology machines to meet the demand of domestic as well
as international markets.
PAONTA SAHIB UNIT
The Paonta Sahjb unit was operating at capacity utilization of 86 % and
had production of 81.65 lac kgs of yarns.
MACHHIWARAUNIT
The companys strength lies in value added products. The unit had
achieved production of 34 lac kgs of value added products during the
year.
The capacity utilisation of Worsted unit was 35% and is below the
optimum level due to seasonality of the products, shortage of labour,
power, tight liquidity and low demand. The unit had achieved production
of 11.97 lac kgs of yam.
FIXED DEPOSITS
The Company has not accepted/renewed any deposits from the public
during the year under review under section 58A of the Companies Act,
1956.
INDUSTRIAL RELATIONS
Your company has cordial relations with employees and no man-day was
lost during the year. The company is very thankful to its employees for
the wholehearted support in achieving optimum level of efficiency.
COMPLIANCE OF LISTING AGREEMENT
The equity shares of the Company are listed at The Bombay Stock
Exchange and National Stock Exchange.The Company has paid annual
listing fee up to 31st March, 2011,
CORPORATE GOVERNANCE
As per Clause 49 of the Listing agre< a separate Report
on Corporate Governance together with Management Discussion and
Analysis and certificate from Companys Auditors is annexed and forms
part of the report.
AUDITORS
M/s. S.C.Vasudeva & Co., auditors of the Company hold office until the
conclusion of the ensuing Annual General Meeting and being eligible,
offered themselves for re-appointment.
AUDITORS REPORT
The Auditors Report on the Accounts is self-explanatory and required
no comments except i) non-disclosure of segment results separately in
respect of sewing thread segment in accordance with Accounting Standard
(AS)-17. Results of the operations of the sewing thread segment is
compiled to the extent it could be computed from the books of account,
however results of the textile segment (yarn & sewing thread) is
disclosed as per Accounting Standard (AS)-17. ii) the company is
confident of recovery of debtors in respect of which balances were not
confirmed and therefore, no provision has been made for doubtful debts
in respect of these debtors as doubtful amount can not be ascertained
at this stage.
DIRECTORS RESPONSIBILITY STATEMENT
Directors Responsibility Statement pursuant to the provision of
section 217(2AA) of the Companies Act, 1956 is attached as per Annexure
C and forms part of the report.
DIRECTORS
Sh. Rishi Oswal and Rahul Oswal retire at the ensuing Annual General
Meeting and are eligible for appointment as Directors subject to
retirement by rotation. They offer themselves for the re-appointment.
Sh.Rattan Singh, nominee of IFCI Ltd ceased to be Directorof the
company. The Board places on record its appreciation for the services
rendered during his tenure as Director of the Company.
Sh. T.Hari Krishnan, nominee of IFCI Ltd, was appointed as Director on
the Board of the company. He is welcome on the board.
Sh.Satish Kumar Mohla, nominee of PNB ceased to be Director of the
company. The Board places on record its appreciation for the services
rendered during his tenure as Director of the Company.
Sh. Nem Chand Jain, nominee of PNB, was appointed as Director on the
Board of the company. He is welcome on the board.
ACKNOWLEDGEMENT
The Board of Directors place on record its appreciation for the
valuable assistance, support and guidance extended to the company by
the Financial Institutions and Banks. The company also acknowledges the
support and co-operation received from dealers, retailers and agents
for promoting various products of the company. The Board also wish to
express its deep gratitude for the continued support from its
shareholders and the employees and appreciate the cooperation and
unstinted support extended to the company.
DISCLOSURE OF PARTICULARS
Statement of particulars of employees pursuant to Section 217(2A) of
the Companies Act, 1956 is attached as per Annexure A
Information as per the Companies (Disclosure of particulars in the
Report of Board of Directors) Rules, 1988 relating to conservation of
energy, technology absorption, foreign exchange earning and outgo is
given in Annexure B forming part of this Report.
For and on behalf of the Board
JANGI LAL OSWAL
Place : Ludhiana Chairman-cum-Managing Director
Dated : 28.05.2010
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