Mar 31, 2015
Dear Member,
We have pleasure in presenting the 29th Annual Report of the Company
along with the Audited Financial Statements of Account and Auditor's
Report thereon for the year ended March 31, 2015.
COMPANY'S PERFORMANCE
The performance of the Company during the year was not satisfactory as
the operations at the plant were stalled due to absence of need base
working capital. Your Company's performance during the financial year
2014-15 is summarized below:
(Rs. In Lakh)
PARTICULARS Current Year Previous Year
ended ended
on 31-03-2015 on 31-03-2014
Income
Revenue from operations 194.53 3721.39
Other Income 2.32 54.46
Total Revenue 196.85 3775.85
Expenses
Cost of material consumed - 725.78
Purchase of traded goods 109.95 2439.7
Change in inventories of finished
goods and work-in-progress 67.51 42.17
Employee benefits expenses 76.77 173.56
Other expenses 129.56 186.1
Prior Period Items and tax 0.1 2.96
Total Expenses 383.89 3570.27
(Loss)/profit before depreciation,
finance cost and tax (187.04) 205.58
Finance Cost 538.07 521.97
(Loss)/profit after finance cost
but before depreciation and tax (725.11) (316.39)
Deprecation 277.02 278.2
(Loss)/profit after depreciation
but before tax (1002.13) (594.59)
Extraordinary item 24.07 -
Tax expense
a. Current Tax - -
b. Minimum alternate tax entitlement - -
Net (Loss)/ Profit for the year (978.06) (594.59)
DIVIDEND
In the view of Losses suffered by the company, the Directors regret
their inability to recommend dividend for the year under review.
PRODUCTION & SALES REVIEW
During the year under review, your company had registered Rs. 194.53
Lakhs as revenue from operations as compared to Rs. 3721.39 Lakh showing
a decrease of Rs. 3526.86 Lakh over previous year because the operations
at the Plant were stalled and only the existing stock of finished goods
were sold off to generate revenue. During this tenure we have been
continuously approaching the Bank to provide the need based working
capital on the basis of orders in hand. Your Company also wrote several
letters to the Bank but all in vain as till date we did not get any
appropriate response from them. We must admit that the Board of
Directors have been very supportive during this while and have
continuously made efforts to revive the company. They have been
instrumental in new initiatives and in facilitating new projects in
consonance with the objectives of the company, which could contribute
towards increase of revenue from the mainstream business activities.
BUSINESS STRATEGY
Our strategic objective is to build a sustainable organization that
remains relevant to the agenda of our client while generating
profitable growth for our investor. We are working on forging such
alliances that will not only complement our core competencies but also
lead us to growth trajectory. We will periodically assess the
effectiveness of our organization structure and process to optimize it
for alignment with our strategic objectives and agility. We constantly
monitor and optimize various operational parameters such as cost and
utilization of resources, distribution of employees, cost of operations
and efficiencies of scale.
PROCUREMENT AND DISTRIBUTION
Procurement department purchases raw cotton and processes into cotton
yarn for the weaving division. Entire yarn production is consumed
internally for the manufacturing of grey fabrics and combed yarn has to
be purchased from other spinners.
Marketing department, manages order books, sales and collections.
TECHNOLOGY AND NEW PRODUCT DEVELOPMENT
Management's endeavour is to maximise the quality and quantity of
output from the spinning and weaving department. All efforts are
focused on processing higher margin products with improved efficiency.
The focus of the company has been on Exports and Technical Textiles
(including products for institutional sector). Our products are well
accepted in International Market as well as in Defence, Paramilitary
forces, Steel and Oil Companies. RTL is planning to leverage the market
for safety and security solutions.
RESOURCES UTILISATION
Fixed Assets: The Fixed assets as at 31st March, 2015 were Rs. 6103.73
Lakh.
Current Assets: The current assets as at 31st March, 2015 were Rs.
4359.05 Lakh as against Rs. 4440.48 Lakhs in the previous financial
year. Inventory level was at Rs. 666.73 Lakh as compared to the
previous year level of Rs. 734.24 Lakh.
OPERATIONS
Manufacturing Capacities: A state of the art manufacturing facility in
Jagdishpur, District Amethi (UP).
Spinning: Current capacity of 11,520 spindles, 12 ring frames, 2 open
end and 432 rotors backed by all prepartories from Reiter.
Weaving: There are 72 PU 7100 SulzerRueti Shuttle-less Projectile Looms
backed by adequate prepatory. Plant is equipped with Benninger Warping
machine and Sucker Muller high production Sizing Machines.
SUBSIDIARY
As on March 31, 2015, the company has no subsidiary company.
MANAGEMENT DISCUSSION AND ANALYSIS
Management Discussion and Analysis Report for the year under review as
stipulated under Clause 49 of the listing agreement with the Stock
Exchanges in India is presented in a separate section forming part of
the Annual Report.
DEPOSITS
The company did not accept any deposits from the public during the
financial year. Hence, no information is required to be appended to
this report.
MEETINGS OF THE BOARD
The Board met four times during the financial year, the details of
which are provided in Corporate Governance Report that forms part of
this Annual Report. The intervening gap between any two meetings was
within the time gap prescribed by the Companies Act, 2013 as well as
clause 49 of the Listing agreement.
INDUCTION OF DIRECTOR
On the recommendation of the Nomination and Remuneration Committee, the
Members appointed Mr. Shyam Sunder Madan as the Independent Director of
the company w.e.f. 18th December 2014. We thank the shareholders for
their support in confirming the appointment of Mr. Shyam Sunder Madan
at the AGM of the company held on December 18, 2014. Further, the
shareholders via postal ballot approved the appointment of Mr. Surender
Malik as Independent director w.e.f. April 24, 2015. We thank the
shareholders for their support in confirming his appointment.
RETIREMENTS AND RESIGNATIONS
During the year under review, Mr. S. B. Mohapatra, had resigned from
the post of Independent Director w.e.f. November 10, 2014. The Board
placed on record its appreciation for the services rendered by Mr. S.
B. Mohapatra during his tenure with the Company.
Mr. Umesh Kumar Khaitan retired at the Annual General Meeting of the
company held on December 18, 2014 and did not seek re-appointment. The
Board thanked him for providing valuable guidance during the tenure of
his services.
The Companies Act, 2013 provide for appointment of independent
director. Section 149(10) of the Companies Act 2013 (effective 1st
April 2014) provides that independent directors shall hold office for a
term of up to five consecutive years on the board of the company and
shall be eligible for re-appointment after passing a special resolution
by the shareholders of the company.
Sub- section (11) states that no independent director shall be eligible
for re-appointment for more than two consecutive terms of five years.
Sub-section (13) states that the provision of retirement by rotation as
defined in sub-sections (6) and (7) of section 152 of the act shall not
apply to such independent directors.
The term of appointment of Mr. R Shankar will cease at the ensuing
Annual General Meeting. The Board thanks him for providing valuable
guidance during the tenure of his services.
Ms. Pooja Sabharwal, had resigned from the post of Joint Managing
Director w.e.f. April 01, 2015. However, she would continue to be
associated with the company in the capacity of 'Non- executive
Director'.
DECLARATION BY INDEPENDENT DIRECTORS
The Company had also received declarations from all the Independent
Directors of the Company confirming that they meet with the criteria of
independence as prescribed both under sub-section (6) of Section 149 of
the Companies Act, 2013 and under Clause 49 of the Listing Agreement
with the Stock Exchanges.
The Company policy is to have an appropriate mix of executive and
independent directors to maintain the independence of the board and
separate its function of governance and management. The board
periodically evaluate the need for change in its composition and size.
The Policy for selection of Directors and determining Directors
independence and Remuneration Policy for Directors, Key Managerial
Personnel and other employees are attached as Annexure I and Annexure
II respectively.
BOARD EVALUATION
Clause 49 of the listing agreement mandates that the board will monitor
and review the Board evaluation framework. The Companies Act, 2013
states that a formal annual evaluation needs to be done by the board of
its own performance and that of its committees and individual
directors. Schedule IV of the Companies Act, 2013 states that the
performance evaluation of the independent directors will be done by the
entire board except the director being evaluated.
The Company has devised a Policy for performance evaluation of
Independent Directors, Board, Committees and other individual
Directors, which includes criteria for performance evaluation of the
non-executive directors and executive directors. On the basis of the
Policy for performance evaluation of Independent Directors, Board,
Committees and other individual Directors, a process of evaluation was
followed by the Board for its own performance and that of its
Committees and individual Directors.
FAMILIARATION PROGRAMME FOR INDEPENDENT DIRECTORS
The details of programmes for familiarization of 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 and related matters are put up on the website of the
Company at the link: http://www.runeecha.eom//Corporate-Govemance.html
COMMITTEE OF THE BOARD
Currently, the board has four committees: the audit committee,
nomination and remuneration committee, stakeholders relationship
committee and risk management committee. A detailed note on the Board
and its committee is provided under the Corporate Governance Report
that forms part of this Annual Report.
DIRECTORS' RESPONSIBILITY STATEMENT UNDER SECTION 134(3) (c) OF THE
COMPANIES ACT, 2013
Your Directors confirm that:
1. In the preparation of the annual accounts for the year ended March
31, 2015, the applicable accounting standards read with requirements
set out under Schedule III to the Act, have been followed and there are
no material departures from the same;
2. The Directors have 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 as at March 31, 2015 and of the profit of the Company
for the year ended on that date;
3. The 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 the Company and
for preventing and detecting fraud and other irregularities;
4. The Directors have prepared the annual accounts on a 'going
concern' basis;
5. The Directors have laid down internal financial controls to be
followed by the Company and that such internal financial controls are
adequate and are operating effectively; and
6. The Directors have devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems are
adequate and operating effectively.
CORPORATE GOVERNANCE
The Company is committed to maintain the highest standards of corporate
governance and adhere to the corporate governance requirements set out
by SEBI. The report on Corporate Governance as stipulated under the
Listing Agreement forms an integral part of this Report. The requisite
certificate from the Auditors of the Company confirming compliance with
the conditions of corporate governance is attached to the report on
Corporate Governance.
CERTIFICATE ON CORPORATE GOVERNANCE
As required by clause 49 of the Listing Agreement, certificate on
Corporate Governance is enclosed as Annexure III to the Board Report.
PARTICULARS OF EMPLOYEES
There is no such employee in the Company who is drawing remuneration in
excess of limits laid down u/s Section 197(12) of the Companies Act,
2013 read with Rules 5(1) of the Companies (Appointment and
remuneration of Managerial Personnel) Rules, 2014and therefore, no such
particulars are furnished herewith.
VIGIL MECHANISM
The Vigil Mechanism of the Company, which also incorporates a whistle
blower policy in terms of the Listing Agreement, comprises senior
officers of the Company. A whistle blower through an e-mail, or letter
can make protected disclosures to the Compliance Officer or the
Chairman of the Audit Committee.
The Policy on vigil mechanism and whistle blower policy may be accessed
on the Company's website at the link: http://
www.runeecha.com/Corporate-Governance.html
CONTRACTS AND ARRANGEMENTS WITH RELATED PARTIES
All contracts / arrangements / transactions entered by the Company
during the financial year with related parties were in the ordinary
course of business and on an arm's length basis. During the year, the
Company had not entered into any contract / arrangement / transaction
with related parties which could be considered material in accordance
with the policy of the Company on materiality of related party
transactions.
The Policy on materiality of related party transactions and dealing
with related party transactions as approved by the Board may be
accessed on the Company's website at the link:
http://www.runeecha.eom//Corporate-Govemance.html
Your Directors draw attention of the members to Note 34 to the
financial statement, which sets out related party disclosures.
RISK MANAGEMENT
During the year, your Directors have constituted a Risk Management
Committee which has been entrusted with the responsibility to assist
the Board in overseeing that all the risks that the organization faces
such as strategic, financial, credit, market, liquidity, security,
property, IT, legal, regulatory, reputational and other risks have been
identified and assessed and there is an adequate risk management
infrastructure in place capable of addressing those risks. A Risk
Management Policy was reviewed and approved by the Committee.
STATUTORY AUDITOR
At the Annual general meeting held on December 18, 2014, M/s.
Haribhakti& Co. LLP, were appointed as the Statutory Auditors' of the
Company till the conclusion of the next annual general meeting to be
held in the year 2015. Considering the stipulation contained under
section 139 (2) of the Companies Act, 2013, M/s Haribhakti& Co. LLP, is
not eligible to be re-appointment for the financial year 2015-16.
The Company had received confirmation from M/s K. N. Gutgutia& Co.,
Chartered Accountants that their appointment, if made, would be in
accordance with the provision of Section 139 of the Companies Act, 2013
and that they are not disqualified for appointment. Therefore, the
Board of directors recommend their appointment as the Statutory
Auditors of the Company for a term of five years subject to
ratification at every Annual General Meeting.
COMMENTS ON AUDITORS REPORT
The Auditors Report is self-explanatory and there are no adverse
observations / qualifications contained in the Auditors Report.
However, your director's would like to clarify that the statutory dues
till March 31, 2015 have been deposited as on the date of the approval
of the report.
SECRETARIAL AUDITOR
The Board has appointed M/s VLA & Associates, Practising Company
Secretary, to conduct Secretarial Audit for the financial year 2014-15
as required under Section 204 of the Companies Act, 2013 and rules
thereunder. The Secretarial Audit Report for the financial year ended
March 31, 2015 formed part of the Annual Report as Annexure IV to this
Report.
EXTRACT OF ANNUAL RETURN
In accordance with section 134(3) (a) of the Companies Act, 2013 an
extract of Annual Return of the Company is annexed herewith as Annexure
V to this Report.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The particulars prescribed under Section 134 (3)(m) of the Companies
Act, 2013 read with the Companies (Accounts) Rules 2014 relating to
conservation of energy, technology absorption, foreign exchange
earnings and outgo, are not applicable to the company since the company
had not conducted any manufacturing activities during the period under
review.
GREEN INITIATIVE
The company had started a sustainability initiative with the aim of
going green and minimizing our impact on the environment. Like the
previous years, this year too, we are publishing only the statutory
disclosures in the print version of the Annual report. Additional
information is available on our website: www.runeecha.com.
Electronic copies of the Annual Report 2015 and notice of the 29th AGM
is send to all the members whose email addresses are registered with
the company/depositary participant(s). For members who have not
registered their email addresses, physical copies of the Annual report
2015 and notice of 29th AGM are sent in the permitted mode. Members
requiring physical copies may send their request to the Company
Secretary.
ACKNOWLEDGEMENT
Your Directors are pleased to place on record their sincere gratitude
to the Government, Financial Institutions, Bankers, customers, vendors
and Business Constituents for their continued and valuable co-operation
and support to the Company. They also take this opportunity to express
their deep appreciation for the devoted and sincere services rendered
by the employees at all levels of the operations of the Company during
the year.
Your Directors also convey their grateful thanks to the shareholders
for their continued assistance, cooperation and patronage.
Date: 30.06.2015 sd/-
Place: Noida (Pradeep Jain)
CIN: L99999MH1986PLC038532 Chairman & Managing Director
Mar 31, 2014
Dear Member,
We have pleasure in presenting the 28th Annual Report of the Company
along with the Audited Financial Statements of Account and Auditor''s
Report thereon for the year ended 31st March, 2014.
COMPANY''S PERFORMANCE
The performance of the Company during the year was not satisfactory
because of adverse market conditions prevailing in all business
segments coupled with higher input costs and increasing interest rates.
Your Company''s performance during the financial year 2013-14 is
summarized below:
(Rs. In Lacs)
PARTICULARS Current Year Previous Year
ended on ended on
31.03.2014 31.03.2013
Income
Revenue from operations 3721.39 3281.11
Other Income 54.46 5.99
Total Revenue 3775.85 3287.10
Expenses
Cost of material consumed 725.78 2345.23
Purchase of traded goods 2439.7 264.17
Change in inventories of finished goods
and work-in-progress 42.17 (270.12)
Employee benefits expenses 173.56 243.20
Other expenses 186.1 295.79
Prior Period Items and tax 2.96 1.00
Total Expenses 3570.27 2879.27
(Loss)/profit before depreciation, finance
cost and tax 205.58 407.83
Finance Cost 521.97 401.81
(Loss)/profit after finance cost but before
depreciation and tax (316.39) 6.02
Deprecation 278.2 406.95
(Loss)/profit after depreciation but before tax (594.59) (400.93)
Extraordinary item - -
Tax expense - -
a. Current Tax - -
b. Minimum alternate tax entitlement - -
Net (Loss)/ Profit for the year (594.59) (400.93)
FINANCIAL ANALYSIS AND REVIEW OF OPERATIONS
Directors are pleased to report the Company''s business operations
performance as follows:- PRODUCTION & SALES REVIEW
During the year under review, your company had registered revenue from
operations (turnover) of Rs. 3721.39 Lakh as compared to Rs. 3281.11 Lakh
showing an increase of Rs. 440.28 Lakh over previous year. Your directors
are striving towards making effort in order to increase the turnover
thereby facilitating new projects in consonance with the objectives of
the company which could contribute in the increase of revenue from the
mainstream business activities.
Weaving
During the year, the Production of Grey Fabric in house was 10.64 Lac
Meters (Previous Year 29.50 Lacs Meters) besides buying of Fabric from
the market of 22.49 Lacs meters (Previous Year 29.09 Lacs Meters) to
complement the Sales Orders from the Customers.
Spinning
Our major raw material cotton is an agricultural produce which suffers
from climatic volatility and the increasing demand has put greater
pressure on the prices and pressure on the Textile Industry as a whole.
Though the spinning Industry has fared somewhat better those with a
presence in weaving, processing or even composite businesses are facing
to heat due to increase in input without being able to pass on such
higher cost to the customers as the market is simply unable to absorb
the same.
RESOURCES UTILISATION
Fixed Assets: The Fixed assets as at 31st March, 2014 were Rs. 6380.49
Lakh as compared to Rs. 3688.64 Lakh in the previous financial year.
Current Assets: The current assets as at 31st March, 2014 were Rs.
4440.48 Lakh as against Rs. 3903.75 Lakhs in the previous financial year.
Inventory level was at Rs. 734.24 Lakh as compared to the previous year
level of Rs. 675.23 Lakh.
OPERATIONS
Manufacturing Capacities: A state of the art manufacturing facility in
Jagdishpur, District Amethi (UP).
Spinning: Current capacity of 11,520 spindles, 12 ring frames, 2 open
end and 432 rotors backed by all prepartories from Reiter.
Weaving: There are 72 PU 7100 Sulzer Rueti Shuttle-less Projectile
Looms backed by weaving prepatory from Benninger for Wraping and Sucker
Muller high production Sizing Machines.
EXTENSION OF TIME TO HOLD ANNUAL GENERAL MEETING
The Company had applied to the Registrar of Companies, Maharashtra for
granting extension of time to convene its Annual General Meeting for
the financial year 2013-14 since the operations of the company were
interrupted due to severe thunderstorm because of which the data of the
company was lost and the retrieval of the same took lot of time and as
such the accounts of the company could not be finalized on time. The
Registrar of Companies, being satisfied, granted two month''s extension
to hold the Annual General Meeting on 19th September 2014.
DIVIDEND
In the view of Losses suffered by the company, the Directors regret for
their inability to recommend dividend for the year under review.
DEPOSITS
The company did not accept any deposits from the public during the
financial year. Hence no information is required to be appended to this
report.
BOARD OF DIRECTORS
The Board appointed Mr. Pradeep Jain as the Managing Director of the
company w.e.f. 01st August 2013 and Ms. Pooja Sabharwal as the Joint
Managing Director. We thank the shareholders for their support in
confirming the appointment of Mr. Pradeep Jain and Ms. Pooja Sabharwal
at the AGM of the company held on 14th August 2013.
As per the provisions of the Companies Act, 2013, Ms. Usha Jain and Mr.
Umesh Kumar Khaitan will retire at the ensuing Annual General Meeting,
and being eligible Ms. Usha Jain seeks re-appointment. The Board of
director recommends her re-appointment.
The Company had also received declarations from all the Independent
Directors of the Company confirming that they meet with the criteria of
independence as prescribed both under sub-section (6) of Section 149 of
the Companies Act, 2013 and under Clause 49 of the Listing Agreement
with the Stock Exchanges.
CHANGES IN KEY MANAGERIAL PERSONNEL
Ms. Jaya Ranglani has resigned from the post of Company Secretary and
the Board of Directors has appointed Ms. Preeti Choudhary as the
Company Secretary and Compliance Officer w.e.f. 30.06.2014, being a Key
Managerial Personnel at the meeting of the Board of directors.
DIRECTORS'' RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2AA) of the Companies Act 1956, the Directors,
based on the representations received from the operating management and
after due inquiry confirm that:
1. That in the preparation of annual accounts for the financial year
ended 31st March 2014, the applicable mandatory accounting standards
have been followed and there are no material departures.
2. That the Directors have selected such accounting policies and
applied them consistently and made judgment and estimates that were
reasonable and prudent so as to give a true and fair view of the state
of affairs of the company as at 31st March 2014 and of the loss of the
Company for the year ended on that date.
3. That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provision of the Act for safeguarding the assets of the company and for
preventing and detecting fraud and other irregularities; and
4. That the Company has prepared the Annual Accounts of the Company on
a "Going Concern" basis;
PROCUREMENT AND DISTRIBUTION
The division purchases raw cotton and processes into cotton yarn for
the weaving division. Entire output is consumed internally for the
manufacturing of grey fabrics and the division gets cotton yarn from
the spinning division and purchases combed yarn from other spinners.
Sales are controlled by marketing department.
TECHNOLOGY AND NEW PRODUCT DEVELOPMENT
Management''s endeavour is to maximise the quality and quantity of
output from the spinning and weaving department. All the efforts are
focused on processing higher margin products with improved efficiency.
The focus of the company has been on Exports and Technical Textiles
(including products for institutional sector). Our products are well
accepted in International Market as well as in Defence, Paramilitary
forces, Steel and Oil Companies. RTL is planning to leverage the safety
and security solutions with an understanding that there has been a
buying of more than Rs. 4000 crores of such products.
CORPORATE GOVERNANCE
The Company has committed to maintain the highest standards of
Corporate Governance and adhere to the Corporate Governance requirement
set out by SEBI. The Company has also implemented several best
Corporate Governance practices as prevalent globally.
The Report on Corporate Governance as stipulated under Clause 49 of the
Listing Agreement forms part of the Annual Report.
A certificate from the Practicing Company Secretary regarding
compliance of conditions of Corporate Governance as stipulated under
Corporate Governance Clause of the Listing Agreement is annexed to the
report on Corporate Governance.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The particulars as prescribed under Section 217 (1) (e) of the
Companies Act, 1956, read with the Companies (Disclosure of Particulars
in the Report of the Board of Directors) Rules, 1988 are annexed to
this report.
PARTICULARS OF EMPLOYEES
There is no such employee in the Company who is drawing remuneration in
excess of limits laid down u/s 217 (2A) of Companies Act 1956 read with
the Companies (Particulars of Employees) Rules 1975 and therefore, no
such particulars are furnished herewith.
MANAGEMENT DISCUSSION AND ANALYSIS
Management Discussion and Analysis Report for the year under review as
stipulated under Clause 49 of the listing agreement with the Stock
Exchanges in India is presented in a separate section forming part of
the Annual Report.
AUDITORS
M/s. HARIBHAKTI & CO. LLP, the Statutory Auditors'' of the Company will
retire at the ensuing Annual General Meeting and being eligible,
offered themselves for re-appointment. The company has received
certificate from the auditor to the effect that their re-appointment as
the statutory auditor of the company, if made, would be in accordance
with Section 141 of the Companies Act, 2013.
COMMENTS ON AUDITORS REPORT
The Auditors Report is self explanatory and there are no adverse
observations / qualifications contained in the Auditors Report.
COST AUDITORS
For the financial year 2013-14, the Board of Directors of the Company
had appointed on the recommendation of the Audit Committee, M/s.
Ravindra Kumar Mishra & Co., Cost Accountants (Firm''s Registration No.
101355), as Cost Auditors for auditing the cost accounts. Their
appointment was approved by the Central Government.
For the financial year 2014-15, though the Company had re-appointed M/s
Ravindra Kumar Mishra & Co. as Cost Auditors for the financial year
2014-15, yet textiles Industries have been excluded from conducting
cost audit as per Companies (cost records and audit) Rules, 2014.
Therefore, the company may not be requiring the services of M/s
Ravindra Kumar Mishra & Co. in the capacity of cost Auditors.
GREEN INITIATIVE
The company had started a sustainability initiative with the aim of
going green and minimizing our impact on the environment. Like the
previous years, this year too, we are publishing only the statutory
disclosures in the print version of the Annual report. Additional
information is available on our website: www.runeecha.com.
Electronic copies of the Annual Report 2014 and notice of the 28th AGM
is send to all the members whose email addresses are registered with
the company/depositary participant(s). For members who have not
registered their email addresses, physical copies of the Annual report
2014 and notice of 28th AGM are sent in the permitted mode. Members
requiring physical copies may send their request to the Company
Secretary.
ACKNOWLEDGEMENT
Your Directors are pleased to place on record their sincere gratitude
to the Government, Financial Institutions, Bankers, customers, vendors
and Business Constituents for their continued and valuable co-operation
and support to the Company. They also take this opportunity to express
their deep appreciation for the devoted and sincere services rendered
by the employees at all levels of the operations of the Company during
the year.
Your Directors also convey their grateful thanks to the shareholders
for their continued assistance, cooperation and patronage.
For and on behalf of the Board of Directors
Dated: 05.11.2014 Sd/-
Place:Noida (Pradeep Jain)
CIN: L99999MH1986PLC038532
Chairman & Managing Director
Mar 31, 2013
Dear Member,
The have pleasure in presenting the 27th Annual Report of the Company
along with the Audited Financial Statements of Account and Auditor''s
Report thereon for the year ended 31st March, 2013. The financial
results are shown below. The performance of the Company during the year
was not satisfactory because of adverse market conditions prevailing in
all business segments coupled with higher input costs and increasing
interest rates.
Operations & Performance
The Indian textile industry is set for strong growth, buoyed by both
rising domestic consumption as well as export demand. It has witnessed
an incipient turn around in financial year 2012-13 as cotton yarn
prices have picked up and rupee depreciation has enhanced
competitiveness.
Textile exports in the period 2012-13 are witnessing a (-) 4.82 percent
growth in dollar terms although there is 8.10 percent growth in rupee
terms. Cotton season 2012-13 commenced in the backdrop of a strong
trade performance in 2011-12, domestic prices higher than international
prices and Indian textiles mills in a position to import cotton in a
timely manner at competitive prices from international destinations.
India''s Cotton Advisory Board has estimated for 2012-13, production at
5.7 million tons, consumption at 4.6 million tons and 1.2 million tons
as exports.
There are no supply side disruptions or price volatility that is
witnessed in cotton markets. Range bound, stable cotton prices have
enabled the strongest ever industry performance in history with cotton
yarn exports likely to cross the 1000 million kgs mark and to cross the
production of 3500 million kgs mark.
COMPANY''S PERFORMANCE
Your Company''s performance during the year 2012-13 is summarized below:
(Rs. In Lacs)
PARTICULARS Current Year Previous Year
ended on ended on
31-03-2013 31-03-2012
Income
Revenue from operations 3281.11 3598.60
Other Income 5.99 6.00
Total Revenue 3287.10 3604.60
Expenses
Cost of material consumed 2345.23 1241.88
Purchase of traded goods 264.17 1342.65
Change in inventories of finished goods
and work-in-progress (270.12) 110.78
Employee benefits expenses 243.20 201.19
Other expenses 295.79 242.48
Prior Period Items and tax 1.00 -
Total Expenses 2879.27 3138.99
(Loss)/profit before depreciation,
finance cost and tax 407.83 465.61
Finance Cost 401.81 390.96
(Loss)/profit after finance cost but
before depreciation and tax 6.02 74.65
Deprecation 406.95 407.91
(Loss)/profit after depreciation but
before tax (400.93) (333.26)
Extraordinary item - -
Tax expense
a. Current Tax - -
b. Minimum alternate tax entitlement - -
Net (Loss)/ Profit for the year (400.93) (333.26)
1. BUSINESS AND PERFORMANCE
Directors are pleased to report the Company''s business operations
performance as follows:-
- SALES REVENUE
During the year under review, the turnover of the Company was Rs. 3281.11
Lacs as against Rs. 3598.60 Lacs in 2011-12, registering decrease of Rs.
317.49 Lacs, which is due to adverse Global Textiles Market Conditions,
fluctuation in the cotton prices and also impact of fire in the
previous year for the revival of plant. Although there is decline in
turnover, but there is significant growth in manufacturing activities.
2. DIVIDEND
In the view of Losses suffered by the company, the Directors regret for
their inability to recommend dividend for the year under review.
3. DEPOSITS
The company did not accept any deposits from the public during the
financial year. Hence, no information is required to be appended to
this report in terms of Section 58A and 58AA of the Companies Act 1956.
4. DIRECTORS
Mr. Pawan Malhotra and Mr. R. Shankar, Directors of the company, retire
from the board by rotation at the ensuing Annual General Meeting and
eligible for re-election.
5. PRODUCTION & SALES REVIEW
1. Weaving
During the year, the Production of Grey Fabric in house was 52.45 Lacs
Meters (Previous Year 29.50 Lacs Meters) besides buying of Grey Fabric
from the market of 5.21 Lacs Meters (Previous Year 29.09 Lacs Meters)
to complement the Sales Orders from the Customers.
2. Spinning
Our major raw material cotton is an agricultural produce which suffers
from climatic volatility and the increasing demand has put greater
pressure on the prices and pressure on the Textile Industry as a whole.
6. OPERATIONS Manufacturing Capacities
A state of the art manufacturing facility in Jagdishpur, District
Amethi (UP). Spinning Current capacity of 11,520 spindles, 12 ring
frames, 2 open end and 432 rotors backed by all prepartories from
Reiter. Weaving Current capacity of 72 PU 7100 Sulzer Rueti
Shuttle-less Projectile Looms.
7. INVESTMENT PROGRAMME
We have a firm faith in the bright future of Textile industry in India.
The Group has done new additions in the Plant in the current financial
year and is planning more expansion /addition in spinning, weaving and
preparatory divisions and is on the look out for fabric processing
plant to process fabric in house to build on economies of scales and
develop capabilities to serve our customers in a competitive
environment.
8. PROCUREMENT AND DISTRIBUTION
The division purchases raw cotton and processes into cotton yarn for
the weaving division. Entire output is consumed internally for the
manufacturing of grey fabrics and the division gets cotton yarn from
the spinning division and purchases combed yarn from other spinners.
Sales are controlled by Marketing Department.
9. TECHNOLOGY AND NEW PRODUCT DEVELOPMENT
Management''s endeavour is to maximise the quality and quantity of
output from the spinning and weaving department. All the efforts are
focussed on processing higher margin products with improved efficiency.
10. POWER
The Unit is having an un-interrupted power from 133 kva line for which
the State Government has given us an independent feeder.
The Unit also have captive power to meet the power requirement in case
of emergency.
11. CORPORATE GOVERNANCE
The Company has committed to maintain the highest standards of
Corporate Governance and adhere to the Corporate Governance requirement
set out by SEBI. The Company has also implemented several best
Corporate Governance practices as prevalent globally.
The Report on Corporate Governance as stipulated under Clause 49 of the
Listing Agreement forms part of the Annual Report.
A certificate from the Practicing Company Secretary regarding
compliance of conditions of Corporate Governance as stipulated under
Corporate Governance Clause of the Listing Agreement is annexed to the
report on Corporate Governance.
12. LISTING OF SECURITIES
The Shares of your company are listed on The Calcutta Stock Exchange
Limited and Bombay Stock Exchange Limited (under permitted category).
The company has also obtained permission for trading of equity shares
of Runeecha Textiles Limited on Bombay Stock Exchange Limited on trade
to trade basis.
13. DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2AA) of the Companies Act 1956, the Directors,
based on the representations received from the operating management and
after due inquiry confirm that:
1. That in the preparation of annual accounts for the financial year
ended 31st March 2013, the applicable mandatory accounting standards
have been followed and there are no material departures.
2. That the Directors have selected such accounting policies and
applied them consistently and made judgment and estimates that were
reasonable and prudent so as to give a true and fair view of the state
of affairs of the company as at 31st March 2013 and of the loss of the
Company for the year ended on that date.
3. That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provision of the Companies Act, 1956 for safeguarding the assets of the
company and for preventing and detecting fraud and other
irregularities; and
4. That the Company has prepared the Annual Accounts of the Company on
a "Going Concern" basis;
14. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The particulars as prescribed under Section 217(1)(e) of the Companies
Act, 1956, read with the Companies (Disclosure of Particulars in the
Report of the Board of Directors) Rules, 1988 are attached as Annexure
''A'' to this report.
15. PARTICULARS OF EMPLOYEES
There is no such employee in the Company who is drawing remuneration in
excess of limits laid down u/s 217 (2A) of Companies Act 1956 read with
the Companies (Particulars of Employees) Rules 1975 and therefore, no
such particulars are furnished herewith.
16. CASH FLOW ANALYSIS
In conformity with the provisions of clause 32 of the Listing
Agreement, the Cash Flow Statement for the year ended 31.03.2013 is
annexed hereto.
17. AUDIT COMMITTEE
Pursuant to section 292A of the Companies Act 1956 and Listing
Agreement, the Company has constituted its Audit Committee of the Board
of Directors and its Members are:
1. Mr. U K. Khaitan (Independent Director) - Chairman
2. Mr. S.B. Mohapatra (Additional Director) - Member
3. Mr. Pawan Malhotra ( Independent Director) - Member
4. Ms. Pooja Sabharwal (Joint Managing Director
w.e.f. 01.01.2013) - Member
18. AUDITORS
M/s. HARIBHAKTI & Co., Chartered Accountants, the Statutory Auditors''
of the Company will retire at the ensuing Annual General Meeting and
being eligible, offer themselves for re-appointment. The company has
received certificate from the auditor to the effect that their
re-appointment as auditor of the company, if made, would be in
accordance with Sec 224 (1B) of the Companies Act, 1956.
COMMENTS ON AUDITORS REPORT:
The Auditors Report is self explanatory and there are no adverse
observations / qualifications contained in the Auditors Report however
certain observations have been made for which explanations & replies
are as under:
1. The Company has not recorded interest and penal interest since
March 2004 on term loan amounting Rs. 5,634,829/- due to State Trading
Corporation, which is not in accordance with paragraph 14 of AS 29
''Provisions, Contingent Liabilities and Contingent Assets''. Pending
settlement of legal dispute, balance of loan as on March 31, 2013 is
subject to confirmation and reconciliation. [Refer Point No. (a) of
Basis of Qualified Opinion of Auditors Report].
Provision for Interest has not been made in view of the fact that
interest liability will not likely to arise and the company is in the
process of settling the issue with STC and is hopeful of amicable
settlement.
2. The calls in arrears amounting Rs. 2,407,000/- are outstanding for a
considerable time for which the Company does not have details of
members from whom such amounts are due. Further, the Company has not
taken any appropriate steps to recover such arrears.
The Company has initiated necessary steps for the reconciliation and
confirmation in respect of calls in arrears amounting Rs. 2,407,000/- and
will take appropriate actions for the forfeiture of shares, if
required.
3. The existing internal control system of the company needs to be
further strengthened to be commensurate with the size and nature of its
business.
Company has already appointed Internal Auditors for further
strengthening the internal audit system of the company and they are
conducting audit on regular basis.
COST AUDITORS:
For the financial year 2012-13, the Board of Directors of the Company
had appointed on the recommendation of the Audit Committee, Mr.
Ravindra Kumar Mishra & Co., Cost Accountants (Firm''s Registration No.
101355), as Cost Auditors for auditing the cost accounts. Their
appointment was approved by the Central Government. In terms of the
Companies ( Cost Audit Report) Rules, 2011, as amended the cost audit
report for the financial year ended March 31, 2013, had been duly filed
with the Cost Audit Branch of the Ministry of Corporate Affairs. In
terms of the Companies (Cost Accounting Records) Rules 2011, as
amended, the compliance report for the financial year ended March 31,
2012 as applicable duly filed.
For the financial year 2013-14, the Board of Directors of the Company
have re-appointed, on the recommendations of the Audit Committee, Mr.
Ravindra Kumar Mishra & Co., as Cost Auditors of the Company for
auditing the cost accounts.
ACKNOWLEDGEMENTS
Your Directors are pleased to place on record their sincere gratitude
to the Government, Financial Institutions, Bankers, customers, vendors
and Business Constituents for their continued and valuable co-operation
and support to the Company. They also take this opportunity to express
their deep appreciation for the devoted and sincere services rendered
by the employees at all levels of the operations of the Company during
the year.
Your Directors also convey their greatful thanks to the shareholders
for their continued assistance, cooperation and patronage.
For and on behalf of the Board of Directors
Sd/-
Date :27.05.2013 Pradeep Jain
Place : NOIDA Chairman & Managing Director
Mar 31, 2012
Dear Member,
We have pleasure in presenting the 26th Annual Report of your Company
along with the Audited Financial Statements and Auditor's Report
thereon for the year ended 31st March, 2012. The financial results are
shown below. The performance of the Company during the year was not
satisfactory because of adverse market conditions prevailing in all
business segments coupled with higher input costs and increasing
interest rates.
OPERATIONS & PERFORMANCE
High cotton prices, coupled with fluctuating inventory, saw Textile and
Clothing (T&C) companies post a dip in bottom line by over 100 per cent
in many cases over 2011-12, says the Confederation of Indian Textile
Industry (Citi).
There is no issue with cotton prices rising, if they do so gradually.
However, from October 2010 to March 2011, prices rose from Rs. 34,000 per
candy (356 kg) to Rs. 63,000 per candy. In the next one month, it almost
came down to where it (originally) was. Such high fluctuations led to
textile mills incurring heavy losses, during the current year.
According to data compiled by the Centre for Monitoring Indian Economy,
out of 234 Textile and Clothing (T&C) companies, 74 per cent or 174
companies saw poorer financial results for the first three quarters of
2011-12. and, of these 174, as many as 130 were net loss-making. The
Company also suffered losses on account of blockage of funds in
receivables resulting in additional interest burden.
1. COMPANY'S PERFORMANCE
Your Company's performance during year 2011-12 is summarized below:
(Rs. in Lacs)
PARTICULARS Current Year Previous Year
ended on ended on
31.03.2012 31.03.2011
Income
Revenue from operations 3598.60 4689.15
Other Income 6.00 6.64
Total Revenue 3604.60 4695.79
Expenses
Cost of material consumed 1206.15 2611.17
Purchase of traded goods 1342.65 1033.79
Change in inventories of finished goods
and work-in-progress 110.78 (462.73)
Employee benefits expenses 201.19 200.61
Other expenses 278.22 311.04
Prior Period Items and tax - 4.17
Total Expenses 3138.99 3698.05
(Loss)/Profit before depreciation,
finance cost, extraordinary items and tax 465.61 997.74
Finance Cost 390.96 326.78
(Loss)/Profit after finance cost but before
depreciation, extraordinary items and tax 74.65 670.96
Deprecation 407.91 419.63
(Loss)/Profit after depreciation but before
extraordinary items and tax (333.26) 251.33
Extraordinary item - 130.62
Tax expense
a. Current Tax - 16.68
b. Minimum alternate tax entitlement - (16.19)
Net (Loss)/ Profit for the year (333.26) 381.46
2. BUSINESS AND PERFORMANCE
Directors are pleased to report the Company's business operations
performance as follows:-
- SALES REVENUE
During the year under review, the turnover of the Company was Rs. 3598.60
lacs as against Rs. 4689.15 lacs in 2010-11, registering decrease of Rs.
1090.55, which is due to adverse Global Textiles Market Conditions,
fluctuation in the cotton prices and also impact of fire in the
previous year for the revival of plant.
3. DIVIDEND
In the view of Losses suffered by the company, the Directors regret for
their inability to recommend dividend for the year under review.
4. DEPOSITS
The company did not accept any deposits from the public during the
financial year. Hence no information is required to be appended to this
report in terms of Section 58A and 58AA of the Companies Act 1956.
5. DIRECTORS
Mrs. Usha Jain and Mr. M. R. Prasanna, Directors of the company, retire
from the Board by rotation at the ensuing Annual General Meeting and
eligible for re-election.
6. PRODUCTION & SALES REVIEW
1. Weaving
During the year, the Production of Grey Fabric in house was 29.50 Lakhs
Meters (Previous year 46.38 Lakhs Meters) besides buying of 29.09 Lakhs
Meters (Previous year 12.40 Lakhs Meters) of Grey Fabric from the
market to complement the Sales Orders from the Customers.
The Sales Revenue from the Grey Fabric of 53.07 Lakhs Meters (Previous
year 57.44 Lakhs Meter) was Rs. 35.51 Crores (Previous year Rs. 46.06
Crores)
2. Spinning
Our major raw material cotton is an agricultural produce which suffers
from climatic volatility and the increasing demand has put greater
pressure on the prices and pressure on the Textile Industry as a whole.
The Sales Revenue from yarn of 0.24 lacs Kgs. Was Rs. 0.27 Crores
(Previous Year Nil)
7. OPERATIONS
Manufacturing Facility
RUNEECHA TEXTILES currently has 72 PU 7100 Sulzer Rueti Shuttle-less
Projectile Looms with 12 Ringframes of 960 spindles each totalling to
11520 spindles & 2 Open End Machines for making yarn, at A-3 Sector 22,
Jagdishpur Industrial Area, Jagdishpur, District C.S.M. Nagar-227817
Uttar Pradesh.
8. INVESTMENT PROGRAMME
We are highly optimistic about the future of textiles industry in
India. Accordingly the company has done new additions in the Plant in
the current financial year and is planning more expansion /addition in
spinning, weaving and preparatory divisions and has tied-up with fabric
processing plant to process fabric so that complete solution can be
provided in today's competitive environment.
9. PROCUREMENT AND DISTRIBUTION
We have in house facility for buying Cotton, Yarn and other Raw
Material & spares. Sales are controlled by marketing department.
10. TECHNOLOGY AND NEW PRODUCT DEVELOPMENT
Management's endeavour is to maximise the quality and quantity of
output from the spinning and weaving department. All the efforts are
focused on processing higher margin products with improved efficency.
11. POWER
The Unit is having uninterrupted power connection from direct feeder of
33 KV (HV/2) for an uninterrupted operations The Unit also have captive
power to meet the power requirement in case of emergency.
12. CORPORATE GOVERNANCE
As per clause 49 of the Listing Agreement with the Stock Exchange,
Management's Discussion and Analysis, a separate report on Corporate
Governance forming part of the Annual Report of the Company is annexed
hereto. A certificate from Practicing Company Secretary regarding
compliance of conditions of Corporate Governance as stipulated under
Corporate Governance Clause of the Listing Agreement is annexed to the
report on Corporate Governance.
13. LISTING OF SECURITIES
The Shares of your company is listed on Calcutta Stock Exchange Limited
and Bombay Stock Exchange Limited under permitted category. The company
has also obtained permission for trading of equity shares of Runeecha
Textiles Limited on Bombay stock exchange Limited on trade to trade
basis.
14. DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 217 (2AA) of the Companies Act 1956, the directors,
based on the representations received from the operating management and
after due inquiry confirm that:
1. That in the preparation of annual accounts for the financial year
ended 31st March 2012, the applicable accounting standards had been
followed and there are no material departures;
2. That the Directors have selected such accounting policies and
applied them consistently and made judgment and estimates that were
reasonable and prudent so as to give a true and fair view of the state
of affairs of the company as at 31st March 2012 and of the loss of the
Company for the year under review;
3. That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provision of the Companies Act, 1956 for safeguarding the assets of the
company and for preventing and detecting fraud and other
irregularities; and
4. That the Company has prepared the Annual Accounts of the Company on
a "Going Concern" basis.
15. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The particulars as prescribed under Section 217(1)(e) of the Companies
Act, 1956, read with the Companies (Disclosure of Particulars in the
Report of the Board of Directors) Rules, 1988 are attached as Annexure
'A' to this report.
16. PARTICULARS OF EMPLOYEES
There is no such employee in the Company who is drawing remuneration in
excess of limits laid down u/s 217 (2A) of Companies Act 1956 read with
the Companies (Particulars of Employees) Rules 1975 and therefore, no
such particulars are furnished herewith.
17. CASH FLOW ANALYSIS
In conformity with the provisions of clause 32 of the Listing Agreement
the Cash Flow Statement for the year ended 31.03.2012 is annexed
hereto.
18. AUDIT COMMITTEE
Pursuant to section 292A of the Companies Act 1956 and Listing
Agreement the company has constituted its Audit Committee of the Board
of Directors and its Members are:
1. Mr. U K. Khaitan (Independent Director) - Chairman
2. Mr. M. R Prasanna (Independent Director) - Member
3. Mr. Pawan Malhotra ( Independent Director) - Member
4. Mrs. Pooja Sabharwal (Promoter Director) - Member
19. AUDITORS
M/s. HARIBHAKTI & CO, Chartered Accountants, the Statutory Auditors' of
the Company will retire at the ensuing Annual General Meeting and being
eligible, offer themselves for re-appointment. The company has received
certificate from the auditor to the effect that their re-appointment as
auditor of the company, if made, would be in accordance with Sec 224
(1B) of the Companies Act, 1956.
COMMENTS ON AUDITORS REPORT:
The Auditors Report is self explanatory and there are no adverse
observations / qualifications contained in the Auditors Report however
certain observations have been made for which explanations & replies
are as under:
1. The Company has not recorded provision for interest and penal
interest on outstanding loan amounting Rs. 56,34,829/- due to State
Trading Corporation since March 2004.[Refer Point No. 4 (a) of Auditors
Report]
Provision for Interest has not been made in view of the fact that
interest liability will not likely to arise and the company is in the
process of settling the issue with STC and is hopeful of amicable
settlement.
2. Calls in arrears amounting Rs. 2,407,000 are subject to confirmation
and reconciliation [Refer Point No. 4 (b) of Auditors Report]
The Company has initiated necessary steps for the reconciliation and
confirmation in respect of calls in arrears amounting Rs. 2,407,000 and
take appropriate actions for the forfeiture of shares, if required.
3. The internal audit system of the company needs to be strengthened
and commensurate with the size and nature of its business.
Company has already appointed Internal Auditors for strengthening the
internal audit system of the company and they are conducting audit on
regular basis.
ACKNOWLEDGEMENTS
Your Directors are pleased to place on record their sincere gratitude
to the Government, Financial Institutions, Bankers and Business
Constituents for their continued and valuable co-operation and support
to the Company. They also take this opportunity to express their deep
appreciation for the devoted and sincere services rendered by the
employees at all levels of the operations of the Company during the
year.
Your Director also convey there greatful thanks to the shareholders for
there continued assistance and co-operation.
For and on behalf of the Board
Sd/-
Dated : 21st May, 2012 (Pradeep Jain)
Place : Noida Chairman & Managing Director
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