ahura welding electrode manufacturers ltd Directors report

AHURA WELDING ELECTRODE MANUFACTURING LIMITED ANNUAL REPORT 2003-2004 DIRECTORS REPORT TO THE SHAREHOLDERS: Your directors present their Report together with the Audited Accounts of your company for the Twelve Months Period ended 31st March 2004. 2003 -2004 2002-2003 (12 Months) (12 Months) FINANCIAL RESULTS: Operating Profit/Loss (-) Before Depreciation and tax - - Add: Depreciation - - Operating profit/Loss - - Add: Profit/Loss (-) on sale of assets - - Profit/Loss after tax - - Add: Prior year expenses/adjustments - - Surplus on Revaluation of Fixed assets - - Net surplus - - APPROPRIATION: Coimbatore Factory Rs.68,80,700/- outstanding for workers settlement. In Madras factory Rs.25,00,000/- outstanding for workers settlement. Retrenchment notice was sent to all workers calculating their salary, gratuity, and others. Provision to this effect has not been made in books of accounts. Out of this, Rs.6,53,814/- paid to Coimbatore Factory workers settlement during the year 2003-2004 PERFORMANCE OF THE COMPANY The company was closed on 17.10.2001. due to severe liquidity crunch and steps are being to taken to reopen the company. Steel Authority Of India Limited :- Steel Authority India Limited Claimed a sum of Rs.2,42,21,173/- from Company under orders of Winding up issued by High court Chennai Dated 25.04.2003 in CP No:12/2003.The company compromised with SAIL, and the total principal settlement was arrived at Rs.85,00,000/- to be paid Immediately and Rs.15,00,000/- towards Interest to be paid at the rate of 1,00,000/- Per month from July 2004. The winding up order was withdrawn by SAIL, the Petitioner, under a Memo of compromise. Accordingly Rs.35,00,000/- has been paid as on 31.03.2004 by the company. Provident Fund Arrears: In addition to sealing the company, the Rahej a property was also sealed by Provident Fund Department for their Arrears of Rs.7,14,462/- on 06.09.2002. On subsequent negotiations with the Department the outstanding amount was completely paid off by deferred payment to the PF Department and release Order has been obtained. During the said period Rs.1,00,000/- was paid vide payorder No:133184 and Rs.72146/- vide Payorder No:133232 on 19.03.2004. Balance amount of Rs.5,42,316/- was Discharged subsequently. Upasana Finance:- A suit was filed by Upasana Finance in Metropolitan Magistratec Court, Saidapet Chennai vide 94512001 against the Board of Directors for their claim of Rs.1,92,536/- The Suit was withdrawn by the Upasana finance on receiving a onetime payment on a Discounted settlement. Workers Settlement:- The company was closed on 17.10.2001 and as on date the outstanding amount as certified by the Board of Directors, in Coimbatore Factory is Rs.68,80,700/- outstanding for workers settlement. In Madras factory Rs.25,00,000/- is outstanding for workers settlement. Retrenchment notice was sent to all workers calculating their salary, gratuity, and others. Provision to this effect has not been made in books of accounts. Out of this, Rs.6,53,814/- paid to Coimbatore Factory workers settlement during the year 2003-2004. DIVIDEND: In the absence of profits, your Directors are unable to consider any dividend for the year. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE OUTGO: The required particulars are furnished in the annexure to this report. DIRECTORS: The following Directors being co-opted during the year retire at this meeting and are re eligible for appointment Mr. C.Lakshmanan Mr. L.Ramanathan Mr. R.M.Sethu DIRECTORS RESPONSIBILITY STATEMENT: The Directors Confirm that 1. In preparing the annual accounts the applicable accounting standards have been followed and necessary explanations have been provided relating to material departures wherever required. 2. The accounting policies followed by the company are consistent and in accordance with law. The judgements and estimates made, are reasonable and prudent so as to give a true and fair view of the state of affairs at the end of the period and the loss of the company for Twelve Months period ended 31.03.2004. 3. Proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with provisions of the Act for safeguarding the assets of the company and for preventing and detecting fraud and other Irregularities. 4. The accounts have been prepared on a going concern basis. On behalf of the Board For Ahura Welding Electrode Manufacturers Limited Place : Coimbatore Date : 8th December 2004 (Sd) C.Lakshmanan Chairman ANNEXURE Form A (See rule 2) Form of Disclosure of particulars with respect to conservation of energy. 2003-2004 2002-2003 (12 Months) (12 Months) A. POWER & FUEL CONSUMPTION Electricity: a) Purchased Units NIL NIL Total amount (Rs.in Lacks) Rate /Unit (Rs) b) Own Generation Units NIL NIL Total amount (Rs.in Lacks) Rate /Unit (Rs) B. CONSUMPTION PER UNIT OF PRODUCTION (per mrm)* Electricity FORM B (See Rule 2) NIL NIL Form of Disclosure of Particulars with respect to absorption TECHNOLOGY ABSORPTION AND INNOVATION 1. Efforts in brief made towards technology absorption, adaptation and innovation. NIL 2. Benefits derived as a result of the above efforts eg. Production improvement, cost reduction, product development, import NIL substitution etc., 3. Expenditure on R&D (Rs.in Lacks) NIL FOREIGN EXCHANGE EARNINGS AND OUTGO 1. Activities relating to Exports NIL 2.Initiatives taken to increase exports; development of new export markets for products and services; and export plans. NIL 3. Total Foreign Exchange 2003-2004 2002-2003 (Rs.in Lacs) (Rs.in Lacs) a) Used NIL NIL b) Earned NIL NIL