LAWA COATED PAPERS LIMITED
TO THE MEMBERS
Your Directors have pleasure in presenting the 10th Annual Report together
with the audited accounts for the year ended March 31, 1995.
During the year the Company has incurred Pre-operative Expenses of Rs.
62.07 lacs, which is pending capitalisation. Since the Company is yet to
start its operation, provision of Depreciation on Building, Plant and
Machinery has not been made.
2. WORKING RESULTS
The Company will be starting commercial production and other activities
As the Company is yet to start the Commercial Production, the Directors
have not recommended any dividend.
4. THE PROJECT
The Company has set up for the first time in India PVDC Coating Plant which
will create revolution in the Food Packaging Industry. The plant imported
from Polytype, Switzerland is fully erected and will be commissioned
shortly by BASF, (Germany) and Polytype, Switzerland .
As per the suggestion of BASF, (Germany) and Polytype, Switzerland the
Company has to add certain machineries in the plant. The revised cost of
the project is estimated to increase approximately by Rs. 285 Lacs. The
Company has already put forth the revised proposal to Industrial
Development Bank of India for appraisal and refunding of Rs. 200 Lacs. As
per the guidelines of the IDBI around 30% of the increase is to be brought
in by the Promoters for which it is proposed to issue 5,00,000 Equity
Shares of Rs. 10/- each at the premium to be determine in accordance with
the guidelines issued by the Securities and Exchange Board of India.
(a) The product range of the Company includes Poly Vinlydinene Diofan
Chloride (PVDC) coated paper, film & foil used in the Pharmaceuticals and
Food Packaging Industry. PVDC is a non-blocking coating on Paper/Film and
Foil used to enhance the barrier properties of the packaging material.
(b) The other products to be produced are Chromo paper, art paper art and
chromo cards which are used in printing calendars, labels, leaflets,
magazine, balance sheets, visiting cards etc.
The Company with the help of Polytype Switzerland, BASF Germany and IIP has
developed Technical literature on PVDC. The Company has received numerous
enquiries for the products from large companies including multinationals,
such as Tata Tea Ltd., Coffee Board, Cadbury's, Fiber Foils India Ltd,
Trend Pack etc.
Since the Company has no subsidiaries Section 212 of the Companies Act,
1956 does not apply.
(a) Mr. T. K. Sinha was appointed as Director by the Board of Directors in
their meeting held on 12th December, 1994 to fill up casual vacancy in
place of Dr. M. V. Patwardhan who has resigned from the Board due to his
pre-occupation. Mr. T. K. Sinha was also elected as Chairman of the
Company. The Board places on record its appreciation for the services
rendered and guidance provided by Dr. M. V. Patwardhan during his tenure.
(b) Mr. R. J. Majra (Solicitor) was appointed as Director by the Board of
Directors in their meeting held on 12th December, 1994 to fill up the
casual vacancy of Mr. Vishwas B. Panse who resigned from the Board due to
his pre-occupation. The Board places on record its appreciation for the
services rendered and guidance provided by Mr. Vishwas B. Panse during his
(c) Mr. Narendra Rawal - Technical Director also resigned from the Board
due to his pre-occupation. The Board places on record its appreciation for
the services rendered and guidance provided by Mr. Narendra Rawal during
(d) In accordance with the provisions of the Companies Act, 1956 and the
Company's Articles of Association, Mr. B. N. Srivastava retires by
rotation at the ensuing Annual General Meeting and being eligible offers
himself for re-appointment.
(e) Mr. Tejash Shah was re-appointed as Whole-time Director with effect
from 1st January, 1990, for a period of five years. His term expired on
31st December, 1994. The Board re-appointed him as Whole-time Director,
for a further period of two years on the same remuneration with effect from
1st January, 1995.
(f) Mr. Jayant Shah was appointed as Managing Director of the Company from
1st January, 1990 and his term as Managing Director expired on 31.12.194.
The term of office of Mr. Jayant Shah as Director is valid only upto
ensuing Annual General Meeting. Hence he would cease to be Director of the
Company at the conclusion of the Annual General Meeting. Mr. Jayant Shah
made some allegations against Mr. Tejash Shah in regard to management of
the affairs of the Company which he had subsequently withdrawn. A notice
under Section 257 of the Companies Act, 1956 has been received from some
members proposing the candidature of Mr. N. L. Bhatia for Directorship in
the Company, in place of Mr. Jayant P. Shah signifying their intention to
propose the candidature of Mr. N. L. Bhatia, for the appointment as
Director liable to retire by rotation in place of Mr. Jayant Shah.
M/s. V. N. Sodha & Co. Chartered Accountants were appointed as Auditors of
the Company for the financial year 1994-95, in the last Annual General
Meeting held on 6th September, 1994. During the year the Company had
received notice from M/s. V. N. Sodha & Co., Chartered Accountants showing
their inability due to poor health and couple of heart attacks to complete
the audit for the year 1st April, 1994 to 31 st March, 1995. The Board
appointed M/s. P. G. Khandekar & Co., Chartered Accountants to fill up the
casual vacancy to examine, audit and report on the accounts for the year
from 1.4.1994 to 31st March, 1995.
The term of office of M/s. P. G. Khandekar & Co., Chartered Accountants,
Bombay as Auditors of the Company expires at the conclusion of the ensuing
Annual General Meeting. They are eligible for re-appointment and the
Company has received a certificate from them that their appointment, if
made, would be within the prescribed limits, under Section 224 (1B) of the
Companies Act, 1956.
You are requested to re-appoint them as Auditors for the financial year
10. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGOING.
The Company has no manufacturing activity at present and therefore, the
disclosure of particulars as required under Section 217 (1) (e) of the
Companies Act, 1956 in so far as it relates to the conservation of energy
and technology absorption and foreign exchange earnings and outgoing is not
11. PARTICULARS OF EMPLOYEES
Provision of Section 217 (2A) of the Companies Act, 1956 read with the
Companies (Particulars of Employees) Rules, 1975 are not applicable to the
Company, since non of the employees of the Company was in receipt of total
remuneration of Rs. 3,00,000/- per annum or Rs. 25,000/- per month during
the financial year, under review.
Your Directors wish to place on record their sincere appreciation for the
dedication shown by the employees at all levels during the year.
1) Your Directors are very much thankful to M/s. Polytype - Switzerland and
Calico Industrial Engineers - Bombay (India) for all the co-operation
extended to us inspite of their busy schedule, by giving us a glamorous and
beautiful plant with all modern and computerized facility, within the
2) Your Directors are thankful to BASF - Germany and Bombay for their kind
co-operation and guidance given time to time for successfully setting up
3) Your Directors are grateful to Industrial Development Bank of India and
the Bankers for their continued assistance and guidance.
For and on Behalf of the
Board of Directors
T. K. SINHA
Date: May 26, 1995.