| The Directors submit herewith the 39th Annual Report of the Company
together with the Audited Accounts for the year ended 31st March, 2000.
FINANCIAL RESULTS :
For the For the
Year ended year ended
31.3.2000 31.3.1999
(Rs. in Lacs) (Rs. in Lacs)
Sales and other income 606.59 367.41
Gross profit/(Loss) before interest
and Depreciation 25.72 (38.50)
Less/Add : Net prior year Expenses/Income (0.14) 0.66
Deduction : Interest 47.65 38.28
Net profit/(Loss) Before Depreciation,
Wages Arrears & taxation (22.07) (76.12)
Add : Depreciation 13.04 10.44
Net profit /Loss before taxation (35.11) (86.56)
Add : Liability for wages
arrears of earlier years (18.76) -
Add : /Less Excess/Short provision of
Income tax of earlier years 1.95 -
Net Profit /(Loss) after Taxation (51.92) (86.56)
Add : Balance of Profit and
Loss Account (80.11) 6.45
Balance of Profit & Loss account carried
to balance sheet (132.03) 80.11
OPERATION AND TRADING CONDITIONS
During the year the production was 60,558 single phase meters and
52,961 Poly phase meters as compared with 67949 and 12655 respectively
for 1998-99, indicating increase in production of about 78.5%. The
average sale price per meter also increased by about 6% from Rs.359/-
to Rs.381/-. Resultant inadequate improvement in profitability of the
company is probable due to the change in product mix with increase of
Polyphase meters and static meters.
The improvement in resultant profitability however has kept pace with
the increase in cost.
FUTURE OUTLOOK
The outlook of the future indicates improvement in profitability
provided adequate working capital finance is secured. The factors
indicating improvement in outlook are :
1. Recent tenders floated by State Electricity Boards as GEB and PSEB
indicating improvement in demand for energy meters.
2. Establishment of Electricity Regulatory Commissions like GERC and
MERC etc. which should improve the specifications and pricing of the
energy meters.
DEVELOPMENT AND DIVERSIFICATION WIND MILL PROJECT
Energy units credited to the company through Wind mill and
corresponding fund credit is as follows :-
1998-99 1999-2000
Unit Rs. Unit Rs.
1,27,341 4,05,564/- 1,88,776 6,66,562/-
The company's production of Static energy meters during the year
1999-2000 has been as follows :-
Single phase 68 Nos.
Poly phase 1453 Nos.
Value (Total Sales Rs. 34 lacs (approx.)
Company has made significant progress with the development of static
energy meters particularly in the sphere of tamper resistant meters.
The company has also executed MOU with Natelco for the manufacture of
static energy meters as per the company's design. The Company is
looking forward to sanction by Syndicate Bank of adequate working
capital facilities as a nursing programme for restoring the
profitability of the company.
AUDIT REPORT
Auditors observations and respective notes to the accounts are self
explanatory.
FIXED DEPOSITS :
No fixed deposits were invited, received or are outstanding.
INCOME TAX AND SALES TAX ASSESSMENTS
The Income tax assessment upto 1996-97 i.e. assessment year 1997-98 and
Sales tax Assessment for 1995-96 have been completed.
STAFF AND LABOUR
The liability for the Labour Award has been fully provided for in the
Accounts. Although the award of the Labour Court is still awaited.
The relation with employee otherwise remained cordial during the year.
DIRECTORS
In accordance with the provisions of the Companies Act, 1956 and
Articles of Association of the Company Shri K.N. Mansharamani and Shri
J.S.Aiyer retire by rotation, but being eligible offer themselves for
reappointment.
AUDITORS
Messres Kantilal Patel & Co., Chartered Accountants, Ahmedabad, hold
office as Auditors of the Company until the conclusion of the ensuing
39th Annual General Meeting and the Board recommends their
re-appointment till the conclusion of the next Annual General Meeting.
The Company has received a certificate from Auditors under Section
224(1) of the Companies Act, 1956 to the effect that their
re-appointment, if made, would be without the prescribed limits under
Section 224(1B) of the Act.
Members are requested to consider to consider their re-appointment as
Auditors of the Company for the current year at a remuneration to be
decided by the Board of Directors.
For and on Behalf of Board of Directors
ADDITIONAL PARTICULARS REQUIRED UNDER COMPANIES (DISCLOSURE OF
PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988 FORMING
PART OF THE DIRECTORS REPORT FOR THE YEAR ENDED 31ST MARCH 2000
A. CONSERVATION OF ENERGY
The energy consumption by the Company being limited. The scope of
energy conservation may not be significant. However, the company's
efforts are continuing in making its products energy efficient.
The total energy consumption and energy consumption per unit of
production as follows :-
Electricity Purchased Consumption per unit
of production
1999-2000 1998-99 1999-2000 1988-99
Unit KWH in 4,11,635 3,27,820 2.47 3.51
B. RESEARCH & DEVELOPMENT (R&D)
1. Specific area in which R&D is carried out by the Company.
Microprocessor based (digital) single phase and Polyphase static energy
Meters : More specifically the products being developed are singlephase
kwh meters, single phase kVA meters, three phase kWh meters and three
phase trivector meters.
2. Benefits derived as a result of above R&D.
These static meters have been developed for use in house service and
industrial applications and a replacement to the Ferrari's
electromechanical meters. The Static meter have better sustained
accuracy. They incorporate a number of tamper resistant features and
are energy saving.
3. Future plan of action :
Shift the static meter production from Pilot production plant to higher
capacity production line.
4. Expenditure on R&D.
Rs.5.04 Lacs (Previous year Rs.4.42)
5. Technology absorption, adaptation and innovation :
Does not arise as the development is through in-house R&D.
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