MAHA CHEMICALS LIMITED
Your Directors have pleasure in presenting the second audited accounts of the
company for the year ended 31 st March, 1994.
The Company has commenced fullfledged construction activity and the
construction of factory premises and other anciliery structure will be
completed the end of September, 1994. As informed earlier, the order for
plant and Machinery has already been placed and suppliers have been paid Rs.
143.80 Lacs as on date 30-4-1994 towards advance to the machinery suppliers.
The Machinery is expected to reach at factory premises in the month of
November and the installation will be completed by the month of December/Jan
95. Barring unforeseen circumstances. Your Company expects to commence the
commercial production in the month of January, 1995. The Company has already
negotiated for export of 99.98% pure "white Seal Zinc Oxide" with the
prospective importers of Canada and Malasiya.
FINANCE AND ACCOUNTS
Your Directors deem it necessary to inform you that in absence of any
commercial manufacturing, trading activities during the year ended 31st
March, 1994 your Company has not prepared profit and Loss Account. Various
Expenses incurred are debited to preliminary and preoperative expenses
pending adjustment/allocation .
During April, 1994., the Company successfully made a Public Issue of Rs. 320
Lacs which was subscnbed despite the depressed Market condition prevalling at
that time the Company's paid up capital stands increased from Rs. 160 Lacs
to Rs. 480 Lacs by virtue of this public issue. The work of allotment of
shares is in progress. The Company has made applications to Ahmedabad &
Bombay Stock Exchanges for trading of its shares. Your directors thanks the
investors for the confidence responded by them in the Company.
During the year, the Company has not invited any fixed deposits from the
public and share holders.
In accordance with the provisions of the Companies act 1956 and Articles of
Associaton, of the company, Shri Sudhanshu Pathak retires by rotation and
being elgible offers himself, for reappointment The Directors are further
pleased to inform you that K. P S perumal appointed as an Additional Director
to avail his technical expertise and guidance. In accordarce with the
provisions of the Article of association of the Company he is entitled to hold the office until the conclusion of this Annual General Meeting Your
Company has received a Notice alongwith requiste deposit in accondance with
the provisions of Section 257 of the Companies Act 1956 proposing the name of
the above Director as Director of the Company whose period of office shall be
liable to retire by rotation. Your Directors recommandes to appoint him as a
director on Board.
The auditors M/s. Anil. S. Shah & C,o. whose term expire at the conclusion of
the ensuing Annual General Meeting.
NOTES ON ACCOUNTS
All the observations of the Auditors on the Annual Accounts are self
explanatory and require no further explanations.
Though the Company has not commenced commercial production your Directors
wish to place on record their sincere appreciation of the enthuiastic efforts
put in by all employees at all levels in contributing to the overall progress
in the project implementation. None of the employees of the Company drew
salary in excess of limits prescribed under section 217 (2-A) of the
companies Act, 1956 and the Rules thereunder.
The additional information required to be disclosed in terms of Notification
No. 1029 of 31st December, 1988 issued by the Departrnent of Company affairs
are as follows :
1. Conservation of energy
The Company at present does not consume any energy except that required for
civil construction work of the factory.
2. Technology Absorbtion
The Company has entered into technical arrangements with Union Products and
Projects. Technology Shall be absorbed alongwith the commencement of
3. Foreign Exchange Earning/Outgo:
During the year, there was no Foreign exchange earning and outgo.
The Directors also gratefully acknowledge and place on record their
appreciation of the continued confidence reposed in them and the unfettered
support given to the company by the Company's bankers for all the help,
encouragement extended to the Company during the year.
For and on behalf of Board of directors
(M. K. Patel)
Chairman & Managing Director
A/101, Fairdeal House,
Nr. Swastik char Rasta