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1996
DIRECTORS' REPORT
Your Directors have pleasure in presenting herewith the Eighth Annual
Report and Audited Statement of Accounts of the Company for the Eighteen
months period ended 30th June, 1996.
OPERATIONS
During the year under review your Company achieved a turnover of Rs.
2305.79 lacs as compared to Rs. 448.57 lacs recorded in the previous year.
The operations of the Company during the year under review have resulted in
a Net Loss of Rs.115.38 lacs before providing for items of extra-ordinary
nature pertaining to previous years. The operations of the company have
been mainly affected on account of demand recession in the Industry
resulting in heavy pressure on margins and increased cost of production.
DIRECTORS
Pursuant to the provisions of the Companies Act, 1956 read with Articles of
Association of the Company, Shri A.N.Kapoor retire from the Board by
rotation and he is eligible for re-appointment. During the year under
review Shri Arun Kapoor resigned from the Director6hip of the Company. The
Board places on record its appreciation for the valuable contribution made
by him during his association with the Company. It is proposed to appoint
Shri A. R. Kapoor as the Managing Director of the Company, and the matter
is placed for approval at the ensuing Annual General Meeting. The Board
recommends the resolution for acceptance.
AUDITORS
The term of present Auditors of the Company M/s Jain Dhingra & Associates,
Chartered Accountants expires at the conclusion of the ensuing Annual
General Meeting of the Company and being eligible they have offered
themselves for re-appointment. The observations in the Auditors' Report
read with Notes to the Accounts are self explanatory and do not call for
any further explanation.
PERSONNEL
The relations with the personnel throughout the period under review have
remained cordial. As none of the employees of the Company was in receipt of
remuneration in excess of the limits prescribed under Section 217 (2A) of
the Companies Act, 1956 read with Companies (Particulars of Employees)
Rules, 1975, no particulars are required to be given.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
AND OUTGO
(a) Conservation of Energy
Constant efforts are made by the Company for optimum use and conservation
of energy during manufacturing process. The details regarding total energy
consumption and energy consumption per unit of production are set out in
Annexure-I, forming part of the report.
(b) Technology Absorption, Adaptation and Innovation
The Project has been set up using indigenous technology which has been well
absorbed and adopted. Company will undertake research and Development work
as and when required. However, during, the year your Company has not
incurred any expenditure on research and development.
(c) Foreign Exchange Earnings and Outgo
During the year under review the Company has not initiated any activity
relating to exports hence there were no foreign exchange earnings. There is
no expenditure in foreign exchange during the year.
ACKNOWLEDGEMENTS
Your Directors place on record their sincere thanks to the Financial
Institutions, Banks and various Government authorities for the support and
co-operation extended to the Company and place on record their appreciation
for the sincere and devoted service rendered by all the employees of the
Company and are especially grateful to you for your reposing trust and
confidence in the Company.
ANNEXURE- I
A. Power and Fuel Consumption
Current Year Previous
Year
1995-96 1993-94
(18 months) (18
months)
1. Electricity
(a) Purchases
Unit (lacs) 3.33 1.60
Total Amount (Rs. lacs) 13.54 8.94
Rate/Unit (Rs.) 4.05 5.59
(b) Own Generation
(i) Through Diesel Generator -- --
Unit (lacs) 0.55 0.50
Unit per liter of
Diesel Oil 3.20 3.20
Cost Unit (Rs.) 3.22 2.25
(ii) Through steam
Turbine/Generator
Unit
Unit per liter of fuel/oil/gas
Cost/Unit
(i) Coal
Quantity (Tones) - -
Total Cost (lacs) - -
Average Rate (Rs.)
ii) Paddy Husk
Quantity (Tones) 2911.42 1375.74
Total Cost (lacs) 20.38 5.02
Average Rate (Rs.) 700.00 364.90
2. Furnace Oil Quantity _ _
(Kilo liter)
Total Amount - -
3. Others/internal
Generation
Quantity - -
B. Consumption per unit of production
Production (MT) 7263.00 1569.00
Electricity (Unit 53.42 133.84
Paddy Husk (MT) 0.40 0.88
For and on behalf of the Board
(A.R. Kapoor)
Chairman
PLACE: KANPUR
DATED: 5th October.1996
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