GWALIOR TRANSMISSION SYSTEMS LIMITED
The Directors of your Company present the Eighth Annual Report together
with Audited Accounts for the year ended 31st March, 1996.
PERFORMANCE OF THE COMPANY
The Company could not maintain the growth envisaged in the previous years
due to certain unforeseen circumstances faced by the Company. The company
submitted its renewal and restricting of the bank limits to the bank in the
month of February, 95 which were finally sanctioned in the month of
January, 1996 but on one pretext or other they did not disburse the working
capital limits affecting the sales and profitability of the Company
On the other hand STC who were Company's authorised representative in one
of the Deemed Export contracts arbitrarily and illegally encashed the bank
guarantees amounting to Rs. 172.15 lacs and also withheld the payment
running into several lacs of rupees. For this illegal and arbitrarily
action of STC the Company has moved to the Indian Abitration Counsel and
the matter is subjudiced. Similarly MMTC inspite of promising to give
prompt delivery of the raw material could not adhere to the delivery
schedule affecting the supplies of the company to its customers causing
great delay in execution of the contracts resulted into loss for no faults
of your company. Your company has also initiated legal proceedings against
MMTC for their act of omission putting the company to great losses.
However, looking to demand of products of your Company, d is very hopeful
for revival of the Company performance as the quality and performance of
the Company product is very well established in the market.
In view of the above the Company is already trying to tie up with private
big companies for strategic alliance to supply its products for their
turnkey projects and is also reviving contracts with various power
utilities apart from participating in new Tenders floated by Power
In view of the losses suffered by the Company, your Directors have decided
not to recommended any dividend for the year 1995-96.
During the year Sh. P.S. Navlakha, Sh. B.S. Das, Sh. B.K. Ghose, and Sh.
Rajiv Bajoria resigned from the Board of the Director of the Company due to
certain pre-occupations. The Board appreciated the contribution given by
Sh. P.S. Navlakha, Sh. B.S. Das, Sh. B.K. Ghose, and Sh. Rajiv Bajoria for
the working of the Company. Sh. K.C. Sopema, was appointed as Additional
Director who is retiring at this AGM. The Company has received notice U/s.
257 of the Company's Act, 1956 for his appointment as regular Director of
M/s. R.S. Bhandari & Co., Chartered Accountants, Auditors of the Company
retire at the conclusion of the Eighth Annual General Meeting of the
Company and being eligible, offer themselves for re-appointment.
The Company has received certificate from them u/s 224 (1 B) of the
Companies Act, 1956 confirming their re-appointment, if made, will be
within specified limits. You are also requested to authorise the Board to
fix the remuneration of the Auditors suitably.
The observations in the Auditors Report are dealt with in the notes to
accounts at appropriate places and being self explanatory, need no further
The Company has not accepted deposits either from the public or from
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, AND FOREIGN EXCHANGE EARNING
Particulars with respect to conservation of energy, technology absorption
and foreign exchange earnings and outgo as required to be disclosed in
terms of section 217(1)(e) of the Companies Act, 1956 read in the companies
(disclosure of particulars Rules 1988 are as under:-
In view of the mearge energy consumption, no specific steps are required to
be taken for conservation. Management is inspiring the habit of saving in
energy for general use. No Additional investment is warranted for reduction
of energy consumption.
The Company has not taken any technology from outside. Hence no efforts are
required for absorption of technology.
Details of foreign exchange earning and out go are as under:
(Rs. in lacs)
Earning 1147.26 358.87
Outgo Value of Imports
(CIF basis) 470.95 604.79
PARTICULARS OF EMPLOYEES
During the period no employee, whether employed for the whole year or part
of the year was drawing the remuneration exceeding the limits as laid down
u/s 217(2A) of the Companies Act, 1956. Therefore, the information as
required u/s 217 (2A) of the Act, read with the Companies (Particulars of
employees) Rule, 1975, is not being given.
Further there was no person who was employed throughout the financial year
or part thereof and was in receipt of remuneration at the rate which in the
aggregate is in excess of that drawn by the Managing Director or whole time
directors or Manager and holds by himself or alongwith his spouse and
dependent children not less than 2% of the equity shares of the Company.
Your Directors wish to place on record their appreciation for the full co-
operation and valuable guidance given to the Company by Central and State
Government Authorities and employees of the Company at all levels. Your
Directors also wish to thank the shareholders for their whole hearted
support extended to the company during the year.
By order of the Board of Directors
Place : New Delhi