SOORAJ AUTOMOBILES LTD
20TH DIRECTORS' REPORT FOR THE YEAR ENDED 31ST MARCH, 2002.
1. FINANCIAL REPORTS
Loss for the Year 21,10,104
Add : Depreciation 14,37,931
Net Loss During the Year 35,48,035
The Company has suffered a loss of Rs. 35,48,035 during the year under
review, which is a matter of concern. The main reason for loss during the
year was due to less sale of Three Wheeler as compared to last year. The
less sale during the year was because of the reason that there was a great
slump In Auto Market and also due to labour problem during the part of the
year. Besides the administrative & other expenses were on the higher side
as compared to last year, which are mainly because of Increase In postage
rate & huge advertisement expenses Incurred during the year under review to
boost the sale.
The Company after absorbing all the previous losses, has left an
accumulated profit of Rs. 225399/- as on 31.3.2002. It Is expected that
Company will soon regain Its status during the current financial year by
putting lot of modification in the design of the Three Wheeler so as to
increase its turnover. It Is expected that Company will soon start making
payment of dividend after writing off the preliminary & pre-operative
During the year ended on March 31st, 2002 the turnover of the Company was
Rs. 697.29 lacs as against Rs. 722.38 lacs for the last year thus showing a
decrease of 5% of sale. This less sale during the year 31.3.2002 was due
to slump in the Auto Market as well as comparative increase in operative
expenses and labour problem during a part of year, due to which operational
work of Company was disbanded. The Company produced 751 Three Wheelers
during the year, while during the last year corresponding figures was 800
The less production/sale of Three Wheeler during the year was mainly
because of some labour problem during a part of the year under review due
to which operational work of the Company was totally disbanded and also due
to slump in Auto Market. There being a good demand of Three Wheelers
expected in future as well as a good margin in the sale of Three Wheelers,
the Company is stressing for a greater production of three wheelers. It Is
hoped that production and sales figures of Three Wheeler would increase in
near future on account of obtaining EURO-I certificate of ARAI.
3. INDUSTRIAL RELATION
Relations with the employees expect for a few months have remained cordial
throughout the period. Some disturbances were created by some bad elements
for the part of the year. On account of their unlawful activities, the
Company +d undergone to a critical situation during the year, under review.
However now the situation is normal and completely under contort.
Production work is running smoothly and in full swing presently.
4. BOARD OF DIRECTORS
As per the provision of the Companies Act, 1/3rd of the directors are to be
retired each year. Accordingly, name of Shri Rahul Lakhanpal & Smt. Parkash
Paul were considered for retirement who however are eligible to be
re-appointed In the Annual General Meeting of the Company.
5. AUDITORS :
M/s. Anil K. Bhatia and Associates, Chartered Accountant, Auditors of the
Company hold the office till the conclusion of Annual General Meeting. The
Company has received a certificate to the effect that their reappointment
If made, will be in accordance with the sub section (IB) of section 224 of
the Companies Act., 1956.
6. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
The Information as required under Section 217 (i) of the Companies Act,
1956 is NIL.
7. DIRECTORS RESPONSIBILITY STATEMENT:
It is certified:
(i) That in the preparation of Annual Accounts, the accounting standards
have been followed. In case, there is any material departure from the
accounting standards, proper explanation thereof shall be given.
(ii) That the accounting policies have been applied consistently and the
judgements and estimates made In the preparation of accounts are reasonable
(iii) That proper and sufficient care has been taken for maintenance of
adequate accounting records In accordance with the provisions of the
Companies Act, 1956, for safeguarding the assets of the Company and
preventing and detecting fraud and other Irregularities.
(iv) That the annual accounts have been prepared on a going concern basis.
8. COMPLIANCE OF STOCK EXCHANGE :
In compliance of listing requirement of stock exchange, it is Intimated
that shares of the Company are listed with U. P. Stock Exchange Association
Limited, 14/113, 'Padam Towers', Civil Lines, Kanpur - 1. It is stated that
Y2K has nil effect on the working of the Company.
9. PARTICULARS OF EMPLOYEES
The particulars of the employees of the Company as per Section 217 (2A) of
the Companies Act, 1956 for the year under review are as follows :
(a) Person employed through out the year who were In receipt of the
remuneration for the year which In aggregate was not less than 6,00,000 per
annum : NIL
(B) PERSON EMPLOYED PART OF THE YEAR: NIL
Your Directors acknowledge with gratitude the co-operation and assistance
given by the banks, and place on record the appreciation of devoted
services rendered by executive, staff and workers of the Company.