| The Directors hereby present their Twentyth Annual Report alongwith the
audited Statements of Accounts for the year ended 31st March, 2000.
FINANCIAL RESULTS
Year ended Year ended
31-03-2000 31-03-99
(Rs. in lakhs) (Rs. in lakhs)
Profit/(Loss) before Depreciation & Tax (171.06) (277.57)
Less Depreciation (Excluding)
Depreciation transferred 43.28 53.45
from Revalution Reserves)
Profit/(Loss) before Tax (214.34) (331.02)
Less : Wealth Tax 0.00 1.12
Less : Provision for Taxation 0.00 0.00
Profit/(Loss) after Tax (214.34) (332.14)
Add : Surplus brought forward (504.53) (172.39)
Deficit Carried to Balance Sheet (718.87) (504.53)
DIVIDEND
The Directors have not recommended any dividend for the year.
OPERATIONS
In absence of enough fund based working capital, the production
activity remained suspended through out the year. The Company earned
only rental & other income of Rs. 1.97 lacs for the year.
The Company incurred a loss of Rs. 214.34 lacs after providing for
depreciation.
As reported by the Directors in their earlier report, a reference was
filed with the Board for Industrial & Financial Reconstruction for
declaring the Company a sick under the Sick Companies (Special
Provisions) Act, 1987. The order of Honourable Board is expected
shortly.
FINANCE
The Company is facing severe liquidity crunch in absence of working
capital. Due to continued suspension of production, the Company could
not meet its financial obligations to the Bank and financial
institution.
DIRECTOR
During the year, Dr. S. M. Pathak resigned from the Board as Director.
Mr. Kamal Kishore Sharma, who was appointed as Additional Director by
the Board of Directors in its-meeting held on 25/06/99, also resigned
on 30/11/99 due to pre-occupation. The Directors in their meeting held
on 30/11/99 had appointed Mr. Anantlal Mishra as Additional Director.
Pursuant to the provisions of Sanction 260 of the Companies Act, 1986
Mr. Mishra would be vacating the office at the forthcoming Annual
General Meeting. The Company has received notice from some of its
members under the provisions of Section 257 of the Act signifying their
intention to propose the appointment of Mr. Mishra in the ensuing
annual general meeting.
In accordance with the provisions of the Companies Act, 1956 and
Articles of Association, Mr. Manoj Arya retires by rotation and is
eligible for reappointment.
The Board of Directors has subject to approval of the members,
reappointed Mr. Ravi Arya as Managing Director and Mr. Manoj Arya as
whole time Director designated as executive director, with effect from
01/4/2000. Necessary resolutions shall be placed before the ensuing
annual general meeting for members approvals.
CONSERVATION OF ENERGY, ETC.
In absence of production activity through out the year, information as
required under the provisions of Section 217(1) (e) of the Companies
Act, 1956 read with Companies (Disclosure of Information in the Report
of the Board of Directors) Rules, 1988, is not furnished.
EMPLOYEES
The Company had no employee in receipt of a remuneration exceeding Rs.
6,00,000/- per annum or Rs. 50,000/- per month. Hence, information as
required under Section 217 (2A) of the Companies Act, 1956 read with
rules made thereunder, are not furnished.
AUDITORS
M/s. Kanoongo & Maheshwari, Chartered Accountants, Auditors of the
Company, shall relinquish their office at the forthcoming Annual
General Meeting. However, they are eligible for reappointment Members
are requested to appoint auditors and fix their remuneration.
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