| The Directors are pleased to present the 14th Annual Report together
with the audited statement of accounts for the period ended 31st March,
1999.
FINANCIAL RESULTS Rupees in Lakhs
1998 - 1999 1997 - 1998
(6 Months) (18 Months)
Sales and other Income 271.48 1027.36
Profit Before Interest & Depreciation (2.19) (40.00)
- Interest 287.62 1268.00
- Depreciation 45.31 133.69
- Profit for the Year (335.12) (1441.69)
OPERATIONS
The operations have been affected due to the high level of competition
and low margins, prevailing in Automobile and Spring industry during
this period. The accumulated losses of the Company as on 31-03-1999
are Rs. 2235.96 Lacs. The company had become a sick Company under the
provisions of Section 3(1)(o) of the Sick Companies (Special
Provisions) Act, 1985 as the accumulated losses had exceeded the
networth of the Company as on 30-09-1998. Accordingly the case has
been referred to the BIFR.
FUTURE PROSPECTS
The company have started exploration in the export market. We have
already registered ourselves with reputed Automobile Associations both
inland and abroad. Representatives of potential customers from abroad
have visited the plant and various enquiries have been floated by them.
We expect to achieve breakthrough in the export market by the end of
current financial year.
FINANCE
In an earlier year an arrangement was entered into with the financial
institions for repayment of their dues, as a result of which the
institutions agreed to give concessions including waiver of interest.
The company made adjustments in the Books of Account of that year in
respect of concessions i.e. waiver of interest liquidated damages etc.
the financial institutions subsequently withdrew the concessions and as
a result thereof necessary adjustment in respect of reversal of
concessions were made in the books of company in the previous
accounting period. The financial institions have field a case for
recovery of loans and interest etc. thereon, in the Debt recovery
Tribunal, Delhi.
PERSONNEL
Relations with employees and staff have throughout been cordial.
Directors wish to record their sincere appreciation of the contribution
of the employees at all levels to the company 5 performance.
As required under Section 217(2A) of the Company's Act, 1956, the
particulars are stated in the annexure and forms part of the report.
DIRECTORS
Sh. R.R. Choudhary and Sh. J.K Taneja, Directors of the Company retire
by rotation and being eligible offer themselves for re-appointment.
Shri. S.D. Pillai was appointed as Additional Director of the Company
by the Board as on 25.01.2000. His long managerial experience shall
greatly help the Company.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNING & OUTGO.
A statement giving details in accordance with the Companies (Disclosure
of Particulars in the Reports of Directors) Rules 1988 is annexed and
forms part of the Report.
AUDITORS
M/s Basant Ram & Sons Chartered Accountants retire at the forthcoming
Annual General Meeting and are eligible for reappointment.
AUDITORS' REPORT
As regards comments of the Auditors these when read with the notes of
the accounts are self explantory.
Information as per section 217(1)(e) of the Companies Act, 1956 read
with the Companies (Disclosure of Particular in the report of the Board
Directors) Rules 1988 and forming part of the Directors' Report for the
period ended 31st March 1999.
CONSERVATION OF ENERGY
Measure taken -
1. Regrouping of control switch for lighting.
2. Proper maintenance programme to optimise power consumption by
frequent checks of machines & electrical appliances.
3. Control over consumption of H.S.D. to optimise its use and achieve
maximum results.
TECHNOLOGY ABSORPTION ADAPTION AND INNOVATION
- Technological advancement for manufacturing Helical springs by in
house research and development efforts and improvement of product
reliability.
- Better results through high quality control resulting in increasing
self reliance & product consistence.
- Modification in tools & equipments for quality improvement &
substitution of imported spares.
- Design improvement to meet local needs.
FOREIGN EXCHANGE EARNINGS AND OUTGO
- Details of foreign exchange earning & outgo are given in Schedule 16
in Note No. 16,17,18 and 19 of the enclosed accounts.
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