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1996
VOLVO TERRY INDUSTRIES LIMITED
DIRECTORS' REPORT
Your Directors present herewith their Fourth Annual Report for the year
ended 31st March, 1996.
PROJECTION V. PERFORMANCE
The performance of the Company vis-a-vis projection for the year ended 31st
March, 1996 made in the Prospectus dated 2nd July, 1993 is as under:
(Rupees in Lacs)
Particulars Projected Actuals
Turnover 954.53 169.13
Profit after Tax 211.24 (147.30)
Dividend (pro rata) 30% NIL
EPS (Rs.) 3.95 NIL
The projection could not be achieved on account of delay in implementation
of the project and shortage of working capital funds.
DEPOSITS
During the year, the Company has not accepted any deposits from public. The
Company, has compiled with the provisions of Section 58A of the Companies
Act, 1956, and the deposit rules made thereunder.
DIRECTORS
Mr. Babubhai G. Patel and Mr. Arvind L. Shah, Directors retire at the
ensuing Annual General Meeting of the Company and being eligible offer
themselves for re-appointment.
Mr. Arunbhai P. Patel has resigned from the Directorship of the Company
with effect from the 29th day of November, 1995. The Directors place on
record their appreciation for the services rendered by Mr. Arunbhai P.
Patel during his association with the Company as a Director.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
AND OUTGO
The Company has earned Foreign Exchange equivalent to Rs. 80,21,742/- on
account of export of its products and spent Rs. 14,347/- during the year
under review. The particulars regarding Conservation of Energy and
Technology Absorption pursuant to Section 217(1) (e) of the Companies Act,
1956 are as per the enclosed Annexure - 'A', which forms part of this
report.
PARTICULARS OF EMPLOYEES
There is no employee who is in receipt of remuneration exceeding Rs.
3,00,000/- per annum or Rs. 25,000/- per month, as the case may be, being
the limits prescribed under the Rules pursuant to Section 217(2A) of the
Companies Act, 1956.
AUDITORS
M/s. J.T. Shah & Co., Chartered Accountants, Ahmedabad retire at the
ensuing Annual General Meeting of the Company and being eligible offer
themselves for reappointment.
You are requested to reappoint the Auditors and fix their remuneration.
AUDITORS' REPORT
The Company had to borrow funds from other group finance company at a
higher rate of interest, which is normal in the finance sector, as outside
funds were not available and if such borrowings could not have been made,
the production and other operations could have come to a stand still [Point
VII].
ACKNOWLEDGEMENT
Your Directors place on record their appreciation for the co-operation
received from the Dena Bank and services rendered by the employees of the
Company, and look forward to their continued support in the years to come.
ANNEXURE TO THE DIRECTORS' REPORT
ANNEXURE - A
A. CONSERVATION OF ENERGY:
(a) Energy conservation measures taken : NIL
(b) Additional Investments and Proposals
if any, being implemented for reduction
of consumption of energy : NIL
(c) Impact of the measures at (a) and (b)
above for reduction of energy consumption
and consequent impact on the Cost of
production of goods : NIL
(d) Total energy consumption and energy : AS MENTIONED
consumption per unit of production as HEREUNDER
per Form A of the Annexure in respect of
industries specified in the Schedule
thereto
Power & Fuel Consumption
1. Electricity 1995-96 1994-95
a) Purchased
Unit 4,08,922 1,14,050
Total Amount (Rs.) 11,86,621 4,20,197
Rate/Unit (Rs.) 2.90 3.68
b) Own Generation
Diesel Generator Unit 27,760 18,500
Diesel Consumption (ltrs.) 12,405 11,387
Total Amount (Rs.) 99,240 91,097
Cost per Unit (Rs.) 3.57 4.92
2. Coal NIL NIL
3. Furnace Oil NIL NIL
4. Others (L D O) - (Itrs.) 99,000 24,000
B. TECHNOLOGY ABSORPTION : NOT APPLICABLE
C. FOREIGN EXCHANGE EARNINGS AND OUTGO:
The required information is contained in the Notes to the Accounts,
Schedule 19 [Note No. 11 (f)].
FOR AND ON BEHALF OF THE BOARD
LALBHAI D. SHAH
CHAIRMAN
PLACE : AHMEDABAD
DATE : 23RD AUGUST, 1996.
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