| The Directors present their 18th Annual Report of the company together
with the audited accounts for the year ended 31st December, 1999.
FINANCIAL RESULTS :
(Rs. in Lacs)
For the year Previous year
ended 31.12.99 ended 31.12.98
(12 months) (12 months)
Profit (Loss) before Depreciation (1042.87) (1127.07)
Less : Depreciation 32.88 33.17
Profit (Loss) before taxation (1075.75) (1160.24)
Less : Provision for taxation -- --
Profit (Loss) after tax (1075.75) (1160.24)
Add : Profit (Loss) brought
forward from previous year. (2885.98) (1725.74)
Profit (Loss) for the year
carried to Balance Sheet (3961.73) (2885.98)
OPERATIONS :
During the year ended 31st December, 1999 the company achieved a
turnover of Rs. 682.76 lacs as compared to Rs. 1155.19 lacs and the
loss during the year arrives at Rs. 1075.75 lacs and the total loss
including the previous year's loss is Rs. 3961.73 lacs. The company's
activities basically received set back on account of banks freezing
operations and initiating action for the recovery of advances and hence
the company being unable to participate and execute any new orders,
however in spite of this, the company could achieve the aforesaid
turnover without any external financial help, which itself shows the
potential and strength of the company. The Directors are fully
optimistic about the revival of the company, considering the favourable
Government policy and the potential and strength of the company.
BIFR UNDER SICA :
The company has already filed a reference under Section 15 (1) of SICA
with BIFR, and the management is hopeful of revival of the company and
a favourable decision by the BIFR is expected after the final hearing.
DIRECTORS :
Mr. S. R. Athalye, Mr. Laxman Handa & Mr. Gopal Bhandari were appointed
as the Additional Directors of the Company with effect from 30th July,
1999 and Mr. S. M. Vyas, Mr. S. S. Chauhan & Mr. Vasudevan Iyer were
appointed as the Additional Directors of the Company with the effect
from 21st December, 1999 and they hold office only upto the ensuing
Annual General Meeting as per the Article 112 of the Articles of
Association of the company. Notice have been received from certain
members signifying their intention to propose Mr. S. R. Athalye and Mr.
S. M. Vyas for the appointment as the Directors of the company.
The Board of Directors of the company have decided to appoint Mr. K. A.
Shetty, as the Managing Director of the Company w.e.f. 1st October,
2000, subject to the approval of the members.
Mr. Homi R. Patel retires by rotation and being eligible offers himself
for re-appointment.
Y2K COMPLIANCE :
The company has successfully undergone Year 2000 roll over. All
systems and equipments and functioning properly.
AUDITORS :
M/s. M. A. Shah & Co., Chartered Accountants, the Statutory Auditors of
the company hold the office until the conclusion of the ensuing Annual
General Meeting and are recommended for the re-appointment.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO :
During the year the company was not functioning with full strength and
the business activities of the company was concerned at very few sites
and hence the matter related to the conservation of energy, technology
absorption and foreign exchange earnings and outgo are not applicable.
PARTICULARS OF EMPLOYEES :
As required by the provisions of Section 217 (2A) of the Companies Act,
1956, read with the Companies (Particulars of Employees) Rules 1975 as
amended the names and other particulars of employees are set out in the
annexure tot he Director's Report.
INDUSTRIAL RELATIONS :
The industrial relations in the factory have remained cordial during
the year under review.
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