| Your Directors are hereby presenting the Sixth Annual Report together
with the Audited Accounts for the year ended 30th September 1996.
1. THE FINANCIAL RESULTS:
Your Directors hereby report that the Company has achieved a turnover
of Rs.867.81 lacs compared to the last year turnover of Rs.701.94
Lacs.
The financial results are as under.
(Rs.in Lacs)
1995-96 1994-95
------- --------
Profit before depreciation
and interest 256.96 308.50
Interest 68.50 72.96
Depreciation 49.26 62.71
Profit before tax 139.20 172.83
Provision for tax - -
Profit after tax 139.20 172.83
Less:
Prior year adjustments - 6.22
Amount brought forward 375.31 208.70
Amount available
for appropriation 514.51 375.31
2. DIVERSIFICATION PROGRAMME:
As part of the Company's long term planning and perspective, your
Directors are contemplating on diversifying into other business
activities such as manufacture and sale of steel and iron products,
coke oven products, cement and allied products etc. This requires
alteration of objects clause of memorandum of association of the
Company subject to approval of members of the Company and
confirmation of the Company Law Board. It is also being planned to
make issue of equity shares, convertible and/or non convertible
debentures or any combination thereof either through public issue
and/or rights issue. Yours Directors are also considering the change
in the name of the Company as Charminar Industrial Corporation
Limited, to indicate that the Company is doing business in various
activities, proposed to be taken up as mentioned above. Directors are
seeking the approval of members for each of the activities relating
to change of objects, change of name and issue of shares, debentures
etc.
3. INDUSTRIAL RELATIONS:
Your Directors are happy to report that the industrial relations are
extremely cordial at all levels throughout the year.
4. PERSONNEL:
Information in accordance with section 217(2A) of the Companies Act,
1956 read with the Companies (Particulars of Employees) Rules 1975,
and forming part of the Directors' report for the year ended 30th
September, 1996 is not required to be furnished since none of the
employees is attracted by the provisions of the Section 217(2A) of
the Companies Act, 1956.
5. DIRECTORS:
Shri N.S.Prasad, Director, is retiring by rotation at the forthcoming
Annual General Meeting and being eligible offer themselves for
reappointment.
6. AUDITORS:
The Company's Auditors M/s. Nataraja Iyer & Co, Chartered Accountants,
will retire at the ensuing Annual General Meeting and are eligible
for reappointment.
7. CONSERVATION OF ENERGY ETC.
Information regarding energy conservation, Technology Absorption,
Foreign Exchange Earnings and Outgo as required by Section 217(1)(e)
of the Companies Act, 1956 read with the Companies (Disclosure of the
Particulars in the Report of Board of Directors) Rules, 1988 and
forming part of the Directors' Report for the Year ended 30.09.1996.
A. CONSERVATION OF ENERGY:
a) Energy Conservation
b) Additional investment and proposals if any being implemented for
reduction of consumption of energy.
c) Impact of the measures at (a) and (b) above for reduction of
energy consumption and consequent impact on cost of production.
d) Total energy consumption and energy consumption per unit of
production.
B. TECHNOLOGY ABSORPTION:
e) Efforts made in technology absorption as per Form B.
Not Applicable
C. FOREIGN EXCHANGE EARNINGS & OUTGO
f) Activities relating to exports initiatives taken to increase
exports, development of new export markets for products and services
and export plans. : NIL
g) Total foreign exchange used and earned.
Used : (1) Import of Consumable & Spares Rs. 54,34,513/-
(2) Traveling expenses Rs. Nil.
Earned : Rs. 5,28,300/-
(On receipt basis)
FORM B
Form for disclosure of particulars with respect to Technology
absorption, Research and Development (R & D)
1. Specific area in which R & D carried out by the Company. : N.A.
2. Benefits derived as a Result of the above R & D. : N.A.
3. Future plan of action : Plans to reduce the Cost of production in
existing technology
Technology absorption, adoption and Innovation
1. Efforts in brief made towards technology absorption, adoption
and Innovation.
1) Cutting tools reclamation
2) Chemical additives in coolants
2. Benefits derived as a result of the above efforts e.g. product
improvement, cost reduction, product development imports substitution
etc. : Cost reduction
3. In case of Imported technology (Imported during the last five
years reckoned from the beginning of the financial year) following
information may be furnished. - NIL -
a) Technology imported
b) Year of Import
c) Has technology been fully absorbed
d) If not fully absorbed areas where this has not taken place, reason
therefore and future plans of action.
7. ACKNOWLEDGEMENTS:
The Board of Directors wish to place on record its appreciation of
the sincere and committed efforts put by the Employees, share
holders, customers, Dealers and Bankers for the construction and
growth of the Company.
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