GUJARAT INJECT LIMITED
Your Directors have pleasure in presenting the 10th Annual Report alongwith
the Audited Statement of Accounts for the year ended 31st March, 1996.
REVIEW OF WORKING AND OPERATIONS:
Your Company could achieve the turnover of Rs. 661.66 lacs as against Rs.
1258.53 lacs in the previous year.
During the year under review the company cannot carry on its production's
activities from December, 1995 due to forced closure of the factory by the
ordering Honourable High Court of Bombay, under the following
The Company was finding it difficult to sustain its market share due to
unhealthy competition by rival IV fluid manufacturers.
As per the agreement with BOI Finance Ltd., the Company had to pay Rs.
65.00 lac for regularisation of its lease transactions during the year
under review. Due to financial constraint, the Company could not pay the
agreed amount of Rs. 65.00 lac and BOI Finance Ltd. resorted to legal
action against the Company. As per the Orders of the Hon'ble High Court of
Bombay, an amount of Rs. 4.00 crore had to be deposited immediately but the
Company found it too difficult ot comply with the Hon'ble Court's orders
and the Court Receiver impounded the leased machineries and equipments.
The Management was compelled to close the entire production activities
since December, 95 owing to impounding the main machineries and equipments
by dissecting the entire connections. The total net worth of the Company as
on 31.3.1995 was Rs. 768.12 lac. The harsh action taken by BOI Finance
Ltd. lead to the closure of the plant and thereby heavy losses. This
compounded with the demands made by BOI Finance Ltd. turned the Company
into a Sick Industrial Company under the provisions of the Sick Industrial
Companies (Special Provisions) Act, 1985. This made it obligatory for the
Board to make a reference to the Board of Industrial Finance
Reconstruction. Various revial plans are being worked out and your
Directors are confident that the Company will start its operations within a
short period and earn profit thereafter.
In terms of Company's (Acceptance of Deposits) Rules 1975, we report that
there is matured but not claimed deposit of Rs. 6.47 lacs as at 31st March,
1996. Your Company pursued rules and regulatory provisions for acceptance
All the properties and insurable interest of your company including
buildings, plants, machinery and stocks, wherever necessary and to the
extent required have been adequately insured.
Shri Y.R. Mankodi, Dr. H.S. Jana Directors retire at the ensuing Annual
General Meetings and are eligible for re-appointment.
PARTICULARS OF EMPLOYEES
As required by the Provisions of Section 217(2A) of the Companies Act, 1956
read with Companies (Particulars of Employees) Rules, 1975 (as amended,
there is no employee getting more than Rs. 3,00,000/- during the Financial
year if employed for whole year and Rs. 25000/- per month, of employed
during part of the year.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
Information pursuant to Section 217 (1)(e) of the Companies Act, 1956 read
with the Companies (Disclosure of particulars in the Report of Board of
Directors) Rules, 1988 is given in Annexure b to the Report and forms part
of the same.
The notes forming part of the accounts are self-explanatory and do not call
for any further clarification under section 217 (3) of the Companies Act,
Members are requested to appoint Statutory Auditors to hold the office from
the conclusion of the ensuing annual General Meeting and fix or authorize
the board to fix their remuneration.
Messrs P.B. Shukla & Co., Chartered Accountants, retire Statutory Auditors
of the Company offer themselves for re-appointment. They have furnished a
certificate to the effect that their re-appointment, if made, will be in
accordance with the provision of Section 224(B) of the Company's Act, 1956.
The Board place on record their grateful appreciation of the wholehearted
co-operation and assistance extended by Financial Institutions, Banks,
Government authorities, Shareholders and Associates. Your Directors also
wish to place on record their deep sense of appreciation of the devoted
services rendered by the employee of the company at all levels for the
ANNEXURE B TO THE DIRECTORS' REPORT
Information regarding conservation of energy, technology absorption and
foreign earning and outgo required to be furnish pursuant to the Companies
(Disclosure of Particulars in the report of the Board of Directors) Rules,
1988 and forming part of the Directors' Report for the year ended 31st
A. CONSERVATION OF ENERGY
a. Energy Conservation measures taken
Stringent standards for conservation of energy are enforced in the entire
plant. Leakage of steam is minimised by making all the pipelines
b. Additional investment and proposals, if any, being implemented for
reduction of consumption of energy:
c. Impact of the measures at (a) and (b) above for reduction of energy
consumption and consequent impact on the cost of production of goods:
Measures taken for minimising leakage of steam have resulted into
maintaining the cost of steam at minimum level.
d. Total energy consumption and energy consumption per unit of production
as per Form - A of the Annexure in respect of industries specified in the
Schedule there to.
Details of total energy consumption and energy consumption per unit of
production are given in Form - A hereunder:
B. TECHNOLOGY ABSORPTION:
e. Efforts made in technology absorption as per Form - B.:
The relevant information is given Form - B hereunder.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO:
f. Activities relating to exports, initiatives taken to increase exports,
development of new markets for products and services and export plans:
The Company's IV fluids have been well received in the export markets. The
standards and quality of FIL products have received good acceptance and
The strategy of selecting a few areas and concentrating on those areas has
started paying good dividends. This has resulted in and increasing core of
business potential combined with the better price realizations.
On the export front, the overall performance of the Company is expected to
be one of the front runners from India in next few years.
g. Total foreign exchange used and earned:
During the year under review, the Company has earned Rs. 69,16,411/- from
exports and has spend Rs. 86,04,856/- in foreign exchange for import of raw
materials and towards export promotion expenses.
FORM - A
Form for disclosure of particulars with respect to conservation of energy.
A. POWER AND FUEL CONSUMPTION : Current Year Previous Year
Units 4,34,212 7,03,980
Total Amt. (Rs.) 13,29,289 19,33,789
Rate/Unit (Rs.) 3.06 2.75
b] Own Generation
i) Th. Diesel Generation units 7,015 4,833
Units per Ltr. of Diesel Oil 1.27 1.35
Cost/Unit (Rs.) 7.90 8.00
ii) Th. Steam Turbine/Generator NIL NIL
2. Coal (Specify quality and where used) NIL NIL
3. Furnace Oil
Quantity (K. Ltrs.) 111 211
Total Amount (Rs.) 4,75,774 11,72,865
Average Rate (Rs.) 4.27 5.57
4. Other/Internal Generation NIL NIL
B. CONSUMPTION PER UNIT OF PRODUCTION
Standards Current Year Previous Year
Production (with details)
i) IV solutions in
containers -- 30,18,362 7,18,899
concentrate jars -- -- --
iii) Electricity Per Unit 0.14 Unit 1.12 Unit
Furnace Oil --do-- 0.10 Ltr. 0.04 Ltr.
Coal (Specify qty.) -- NIL NIL
Other (Specify qty.) -- NIL NIL
FORM - B
For Disclosure of particulars with respect of absorption, research and
1. Specify areas in which R & D ---|
carried out by the company |
2. Benefits derived as a result | The Company is in the process
of the above R & D | of putting up a Research and
| Development Unit and therefore
3. Future Plan of Action | no information is available in
| reply of these points ( 1 to
4. Expenditure on R & D | 4)
a] Capital |
b] Recurring |
c] Total |
d] Total R & D expenditure as |
a percentage of total |
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION
1. Efforts in brief, made towards technology absorption, adaptation and
The Company has been employing the latest technology as used in the
European countries for manufacture of intravenous transfusion fluids.
2. Benefits derived as a result of the above efforts e.g. product
improvement, cost reduction, product development, import substitution etc.:
As the time span is short since the Company started commercial production,
no information is available regarding the above.
3. In the case of imported technology (imported during the last 5 years
reckoned from the beginning of the financial year) following information
may be furnished:
a] Technology import ---|
b] Year of import |
c] Has technology been fully absorbed? | Not applicable as the
d] If not fully absorbed, areas where this | Company has not been
has not taken place reasons thereof and | using imported
any future plans of action. ---| technology.
For and on behalf of the Board of
GUJARAT INJECT LIMITED
Place : Baroda
Date : 20th June, 1996.