RADAN TAPES & TUBES LIMITED
Your Directors have great pleasure in presenting the Seventh Annual Report
of the Company together with the Annual Accounts for the year ended 31st
Although the Company has made profits your Directors do not recommend any
Dividend as it is necessary to conserve the resources to finance expansion
of the business of the Company as mentioned elsewhere in the report.
VIDEO SOFTWARE DIVISION
a) The Company operates in high technology area, collectively called
Information Technology (IT). In this field Video Software Division
christened "MAGIKRAFT" has performed very satisfactorily and has earned a
name for itself, despite various competitors coming into this field.
However, to maintain its edge over the competitors, your Directors have
decided to upgrade the technology by investing in DIGITAL EDIT SUITE. This
will enable your Company to maintain its lead.
b) In order to achieve its cutting edge in Computer graphics MAGIKRAFT
division has invested in two Work Stations manufactured by Silicon Graphy,
during March, 1995. The same have been installed and commissioned. The
full benefit of this expansion will be reflected during the year 1995-96.
During 1994-95, Industrial Development Bank of India (IDBI) funded setting
up of the Audio Recording Studio. It will start working by September, 1995.
The demand for such facilities is increasing day by day. Hence it will be
a very profitable venture.
MULTIMEDIA (VIRTUAL STUDIO DIVISION)
Your Company has entered in to an export tie-up for Multimedia application
Software with a European Company. In pursuance of the same a Multimedia
Division has been set up and commissioned in June, 1995. During 1995-96 it
will be a major contributor to your Company's profit .
AUDIO DUPLICATION UNIT
Further, your Directors have also decided to put up a unit for audio
cassette duplication during 1995-96. Its contribution will start in 1996-
97. At present, in India, approximately 480 million pre-recorded audio
cassettes are sold every year. Your Company proposes recording only 10
million cassettes per year.
COMPUTER TAPES DIVISION
At the time of the Public Issue in 1991, your Company had two projects in
mind, one the video software which was duly set up and commissioned in
1992. The other, Computer Tapes Division, is still in the process of being
set up. Looking to the later development, the Company decided to change the
status of the project from DOMESTIC TARIFF AREA to EXPORT PROMOTION AREA.
The Project has been registered under EPCG, which will enable the Company
to import capital goods at a concessional rate of 15% import duty only and
the raw materials will be allowed free of import duty.
Recently, the State Industrial and Investment Corporation of Maharashtra
Ltd (SICOM), acting as agent of government of Maharashtra, has also
accepted your Company's claim for capital subsidy for Rs. 25,00,000/- for
The trend of expansion in TV transmission continues to hold. The
advertisement element on TV is on the rise. The future of video software
industry continues to be bright . Your company will continue to strive to
exploit the potential to the maximum advantage. In India TV advertisement
forms less than 30% of the total advertisement spending, against 70% in the
West. That alone shows the true potential of the Video Software Industry
and to exploit that potential your Company shall keep investing in
CHANGE OF NAME
Keeping in view the diversified nature of the Company's activities, it is
appropriate that the name of the Company be changed to "Radan Multimedia
Ltd",. A separate Resolution is proposed in the forthcoming Annual General
Meeting of the company to obtain your approval to the change.
The Company has not accepted any public deposits during the year.
As per provisions of the Companies Act, 1956 Shri. Nana Chudasama and Shri.
Maneck H. Byramji, Directors retire by rotation at the conclusion of the
Seventh Annual General Meeting and being eligible offer themselves for
M/s. Mehra Saxena & Associates, Auditors of the Company retire at the
conclusion of the ensuing Annual General meeting and being eligible have
expected their willingness to be reappointed. They have already furnished a
certificate stating that their reappointment, if made, will be within the
limits laid down under Sec. 224 *(1B) of the Companies At, 1956.
PARTICULARS OF EMPLOYEES
Particulars of employees as per Section 217 (2A) of the Companies Act, 1956
read with Companies (Particulars of Employees) Rules, 1975 are not
applicable as there are no employees who are in receipt of remuneration for
the financial year for which an aggregate was not less than Rs.3,00,000 per
annum during the year.
Sanction from Maharashtra Pollution Control Board and Environmental Board
has already been obtained, for Computer Project. However, the Company's
plant has not gone into production yet. The Company is keeping abreast with
latest technology development in the field and improvements in the product
for better quality, cost effectiveness and its utility of ingredients.
a) Conservation of Energy
Particulars of Energy, Technology absorption etc. in accordance with
section 217 (1) (e) of the Companies Act, 1956 read with Companies
(Disclosure of Particulars in the report of Board of Directors) Rules, 1988
are set out in Annexure 1 forming Part of this report.
The Board wishes to place on record its sincere appreciation of the
contribution and support of the Company's Workforce at all levels,
Company's Bankers and Financial Institutions during the year.
Statement Pursuant to Section 217 (1) (e) of the companies act, 1956 read
with companies (Disclosure of Particulars) Rules 1988.
a) Conservation of Energy
There are no major areas where energy conservation measures could be
considered viable as the Company's operations involve low energy
consumption. Nevertheless, efforts to optimise and conserve the use of
energy through improved methods continues.
b) Foreign Exchange and outgo
(Rs. in lacs)
i) Total Foreign Exchange Earned 61.17
ii) Total Foreign Exchange Used 17.66
For and on behalf of the Board
Dated: 22nd September, 1995.