Super Spinning Mills Limited

Climate Impact & Sustainability Data (2015-04 to 2016-03, 2020-04 to 2021-03, 2022-03 to 2023-03)

Conservation of Energy continues to receive increased emphasis at all the units of the Company. Department wise power consumption being measured, monitored and compared and corrective actions are being taken on regular basis. Necessary steps were taken by the Company for the Solar energy usage. The Company has incurred `11.70 Lakhs towards energy conservation equipments.

Employer- employee relations continued to remain cordial during the year at all the units of the Company. Various measures are being adopted towards improving the life, work culture, productivity, efficiency and effectiveness of the workers and staff at all levels.

The company’s philosophy on Corporate Governance finds expression in a self-governing model of voluntary adherence of all statutory rules and regulations, timely disclosures, transparent accounting policies and practices, maintenance of the highest degree of integrity and ethical conduct towards all the stakeholders namely shareholders, employees, financial institutions, suppliers and business partners.

volatility and uncertainty in cotton prices and sudden glut in the yarn market
Sale of Yarn and price realization in both domestic and export markets have been lower this year on account of poor demand for yarn.
Non-availability of skilled manpower is one of the major threat faced by our industry today which affects the industry and the operations.
Higher inflation, and substantial increase in the interest rates along with increasing costs of inputs would reduce the profitability of the operations.
uncertainty in the economic growth has an adverse impact on the growth of the industry
Appreciation of Indian rupee over major currencies could have an impact on exports.

Measures are being taken to save costs and rationalize operations, which are likely to yield positive results.
The Company has been adopting a risk management policy to identify the nature and magnitude of risk associated with the company in general and various measures are initiated to avoid such risks. These are also reviewed periodically and placed before the Board.

FO M/c Pot Conversion done in existing machines, wherein 30% of energy saving is observed. Out of 16 machines 14 machines completed last financial year and balance 2 machines completed in this financial year.
CDS system for Ring frames in place of Elite System wherein 20% power saving observed. Out of 31 machines 13 machines completed last financial year and balance 18 machines completed in this financial year.
T5 Tube lights replaced with LED tube lights in all departments
Compressor air energy consumption reduced by monitoring and arresting the air leakages

The Company continues to enjoy the cordial relationship with its employees at all levels.

The Company has a Whistle Blower Policy and has established the necessary vigil mechanism for directors and employees in confirmation with Section 177(9) of the Act and Regulation 22 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 to enable the directors and employees to report concerns about unethical behaviour, actual or suspected fraud or violation of the company’s code of conduct or ethics policy.

COVID-19 pandemic brought the entire world to a standstill, equitably affecting markets and supply chains globally.
severe working capital constraints
SUPER A UNIT manufacturing facility had became uncompetitive
lower working capital requirements for synthetic and blended yarn
Demand of skilled workmen
high volatility in cotton prices, uncertainty of cotton crop and it’s quality, shortage of skilled man power and high power cost

The Board of Directors of the Company, at its meeting held on 27th June 2020, approved to sell/ transfer/dispose off its Manufacturing unit along with 36.26 Acres of land situated at Company’s SUPER A UNIT - Kirikera, Hindupur, Andhra Pradesh (“Undertaking”), and the same was approved by the shareholders of the company in the Postal Ballot held on 5th August 2020.
The net proceeds from the sale of the Undertaking has been utilized to repay the bank borrowings, employee settlements, creditors payments resulting in reduction of interest burden and optimisation of working capital borrowings of the company.
With regard to the SUPER B unit, in view of the lower working capital requirements for synthetic and blended yarn, we have migrated to man made fibres.

Frameworks Used: Ind AS

Third-party Assurance: M/s Sethia, Prabhad Hegde & Co

Internal liquidity issues
Lower yarn price realization
Raw material cost increase (20-25% increase in power cost due to APSPDCL tariff increase)
Significant machinery breakdown at SUPER B Unit (mid-May 2023)
High estimated cost of restoring machinery at SUPER B Unit