| DEAR MEMBERS
The Directors have pleasure in presenting the 18th Annual Report
together with the Audited Statement of Accounts for the period ended
31st December, 2013.
FINANCIAL RESULTS
Your Company's performance during the period is summarized below:
For the period For the period
Ended 31st December ended 30th September
2013 2012
(for 15th Months) (for 12 months)
(Rs.in lacs) (Rs. in lacs)
Total Revenue 18566.85 10323.29
Gross Profit/(Loss) (510.02) (3050.54)
Less: Depreciation 794.10 635.75
Profit/(Loss)before Tax (1304.12) (3686.29)
Less/Add Deferred Tax
Assets/liability 512.88 (868.33)
Net Profit/(Loss) After Tax (1817.00) (4554.62)
Add: Profit /(Loss)brought (7662.42) (3107.80)
forward from previous year
Balance Profit/(Loss)
Carried Forward (9479.42) (7662.42)
DIVIDEND
Your Board of Directors does not recommend any dividend on equity and
preference shares due to loss in \ the Company during the period under
review
PERFORMANCE AND OUTLOOK
Your company's Gross Income during the year was Rs 18566.85 lacs as
compared to Rs 10323.29 Lacs in previous year The Company's cash loss
was Rs.510.02 lacs during the period against cash loss of Rs. 3050.54
lacs in the previous period. The Company's net loss during the period
was Rs. 1817.00 lacs during the period as against net loss of
Rs.4554.62 lacs in the previous year.
The Company incurred loss on account of the following factors:
(i) Volatility in Raw Material Prices.
(ii) Increase in input cost not commensurate with the increase in the
sale price
(iii) Non availability of Raw Material of uniform quality on account of
unfettered and huge export of raw cotton from the beginning of the
cotton season from October 2012,
(iv) Poor market situation, slag in demand forced to sell at a lower
price as compared to cost of production
All the above factors made the yarn costly with poor realization
resulting in loss to the Company.
REWORKING OF THE EXISTING CDR PACKAGE
Company's performance deteriorated during 2011-12 due to external
reasons beyond control of the company like increase in raw material
prices, ban of export of yarn, slag in demand in international and
domestic in international and domestic market, sudden drop in yarn
prices. Considering the gravity of the situation CDR EG approved the
reworking of the existing CDR Package on 11* January 2013. Based on the
same all the lending banks have sanctioned and implemented the rework
package during the year.
DIRECTORS
Shri Mukesh C. Gandhi, Director of the company, retires by rotation
and, being eligible, offers himself for reappointment.
DIRECTORS'S RESPONSIBILITY STATEMENT
Pursuant to the requirement under Section 217(2AA) of the Companies
Act, 1956 with respect to Directors' Responsibility Statement, it is
hereby confirmed:
i) That in the preparation of the accounts for the period ended 31=*
December, 2013 the applicable accounting standards have been followed
along with proper explanation relating to material departures, if any.
ii) That 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 at the end of the Financial period and of the
loss of the Company for the period under review.
iii) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
irregularities.
iv) That the Directors have prepared the accounts for the financial
period ended 31st December 2013 on a going concern basis.
CORPORATE GOVERNANCE
Your Directors affirm their commitments to the corporate governance
standards prescribed by the Securities and Exchange Board of India
(SEBI). A Report on corporate Governance alongwith certificate from
Company Secretaries for its compliance and management discussion and
analysis as required under clause 49 of the listing agreement is
attached.
DEMATERIALISATION
Your Company's Shares are being traded in dematerialized form and over
98.69% of the Shares of the Company have been dematerialized
AUDITORS:
The Auditors of the company, M/s U.Narain & Company, Chartered
Accountants, retire at the conclusion of the ensuing Annual General
Meeting. They have signified their willingness to accept reappointment
and have confirmed their eligibility under section 224(1-B) of the
Companies Act, 1956. Your Directors recommend their reappointment.
The Notes on Accounts referred to in the Auditors' Report are self
explanatory and therefore do not call for any further comments.
STATUTORY REQUIREMENTS:
The information under Section 217(2A) of the Companies Act, 1956 has
been given in Annexure 'A forming part of this Report.
The Company has not accepted and/or renewed any deposits from the
public and/or shareholders during the period under review.
Information regarding conservation of energy, etc. as required U/s
217(1)(e) of the Companies Act, 1956 read with companies (Disclosures
of Particulars in the Reports of Directors) Rules 1988, is given below:
CONSERVATION OF ENERGY:
(a) Energy conservation measures taken;
There is a conscious and concentrated drive towards conservation of
energy in all its forms. Strict vigilance is maintained over usage of
energy by constant monitoring and educating the need to conserve
energy. Replacement of worn out wires, control of idle running
machines, plugging of leakage and putting off power to all major
equipment at non- working time are some of the measures taken to
conserve energy during the period.
(b) Additional investments and proposals, if any, being implemented for
reduction of consumption of energy; NIL
(c) impact of the measures at (a) and (b) above for reduction of energy
consumption and consequent impact on the cost of production of goods;
NOT APPLICABLE
TECHNOLOGY ABSORPTION, ADAPTION AND INNOVATION: 1
RESEARCH AND DEVELOPMENT (R & D)
The Company has not obtained any technology from outside parties either
from India or abroad nor entered into any technical collaboration
agreement with any party from abroad. Experience and qualified staff
are engaged to look into Research and Development. The Company keeps
abreast with the technology development and introduces, adopts and
absorbs those sophisticated technologies, wherever suitable.
TECHNOLOGY ABSORPTION, ADOPTION AND INNOVATION.
To improve the quality of the product, the Company is keeping a regular
track on latest advancement on the spinning technology. Company's
senior and experienced textile technologists are keeping continuous
watch on the quality of the product at various stages. In house
training is being imparted to the employees to improve working in the
plant.
ACKNOWLEDGEMENT:
Your Directors sincerely acknowledge the co-operation and assistance
received from the Financial Institutions, Bankers, WBIDC, WBSEB, all
State Government Departments/agencies and thanks them for their
continued support and valuable assistance.
Your Directors would also like to acknowledge the continued support of
the Company's Shareholders.
In conclusion, your Directors would like to record their deep
appreciation of the dedicated support, hard work and services rendered
throughout the period by Company's personnel at all levels.
ON BEHALF OF THE BOARD
For Pacific Cotspin Limited
Place: Kolkata
Date : 28th February,2014 MANAGING DIRECTOR
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