charminar granites exports ltd Directors report

CHARMINAR GRANITES EXPORTS LIMITED ANNUAL REPORT 2001-2002 DIRECTORS REPORT Your Directors hereby presents the 11th Annual Report of the Company together with the Audited Accounts for the year ended 31st March, 2002. 1. THE FINANCIAL RESULTS The Company has achieved a turnover of Rs.37.56 lacs compared to the last years turnover of Rs.37.69 lacs despite the adverse market conditions ever witnessed by our Country. The financial results are as under: (Rs. in Lacs) 2001-02 2000-01 Loss before depreciation and Interest 21.36 68.69 Interest 1.08 268.97 Depreciation 40.06 40.04 Loss before tax 62.50 377.70 Add: Prior year adjustments - 5.79 Amount brought forward 1872.92 1489.43 Deficit carried forward 1935.42 1872.92 2. INDUSTRIAL RELATIONS: Your Directors are happy to report that the industrial relations are extremely cordial at all levels throughout the year. 3. PERSONNEL: Information in accordance with section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules 1975, and forming part of the Directors report is not required to be furnished since none of the employees is attracted by the provisions of the Section 217(2A) of the Companies Act, 1956. 4. DIRECTORS: During the year, Shri K.Sudhir, Director resigned from the Board on personal reasons and the Board expresses gratitude for the services rendered by him during his tenure and Shri B. Srisailam, Director is retiring by rotation at the forthcoming Annual General Meeting and being eligible offer himself for re-appointment. 5. DIRECTORS RESPONSIBILITY STATEMENT Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956 with respect to the Directors Responsibility Statement, the Directors confirm: a) that in the preparation of the annual accounts, the applicable accounting standards have been followed and that no material departures have been made from the same; b) that they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period; c) that they have taken proper and sufficient care for the maintenance of the adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; d) that they have prepared annual accounts on a going concern basis. 6. STATUS WITH BIFR As members are aware that a reference was made with BIFR under Sick Industrial Companies (Special Provisions) Act, 1985 and hearings were held on 01.08.2001 and 04.10.2001. The BIFR has appointed State Bank of India, Hyderabad as Operating Agency and also directed the State Bank of India to appoint Special Investigative Audit (SIA) and Industrial Labour Law Expert (LLE) to conduct Special Investigative Audit. State Bank of India appointed M/s. Sharp & Tannan, Chartered Accountants to conduct the Special Investigative Audit and they have submitted the report with State Bank of India. Further proceedings are awaited from BIFR. 7. CORPORATE GOVERNANCE Your Company is taking necessary steps to implement and comply with the Clause 49 of the Listing Agreement w.e.f. 2002-2003. Therefore the present Annual Report 2001-2002 does not contain a detailed section on Corporate Governance. 8. AUDITORS: The Companys Auditors M/s. Nataraja Iyer & Co, Chartered Accountants, will retire at the conclusion of the ensuing Annual General Meeting and are eligible for re appointment. 9. CONSERVATION OF ENERGY ETC. Information regarding energy conservation, Technology Absorption, Foreign Exchange Earnings and Outgo as required by section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of the Particulars in the Report of Board of Directors) Rules, 1988 and forming part of the Directors Report. A. CONSERVATION OF ENERGY: a) Energy Conservation } } b) Additional investment and Proposals } proposals if being implemented for } reduction of consumption of energy. } } c) Impact of the measures at (a) and (b) } above for reduction of energy } Not Applicable consumption and consequent impact } on cost of production. } } d) Total energy consumption and } energy consumption per unit of } production. } B. TECHNOLOGY ABSORPTION: e) Efforts made in technology absorption : NIL as per Form B. C. FOREIGN EXCHANGE EARNINGS & OUTGO f) Activities relating to exports, : The demand position for exports initiatives taken to increase has been comfortable. During exports, development of new export the year Orders from Denmark markets for products and services have been tied up on regular and export plans. basis. g) Total foreign exchange used and earned. Used : (1) Import of Consumable & Spares Rs.1,97,758/- Earned : Rs. NIL/- (On receipt basis) FORM B Form for disclosure of particulars with respect to Technology absorption, Research and Development (R & D) 1. Specific area in which R & D carried : N.A. out by the Company. 2. Benefits derived as a Result of the : N.A. above R & D. 3. Future plan of action : Plans to reduce the Cost of production in existing technology. Technology absorption, adoption and Innovation 1. Efforts in brief made towards : 1) Cutting tools reclamation. technology absorption, adoption and innovation. 2) Chemical additives in coolants. 2. Benefits derived as a result of the : Cost reduction above efforts e.g. product improvement, cost reduction, product development imports substitution etc. 3. In case of Imported technology : -NIL- (Imported during the last five years reckoned from the beginning of the financial year) following information may be famished, a) Technology imported b) Year of Import c) Has technology been fully absorbed d) If not fully absorbed areas where this has not taken place, reason therefore and future plans of action. 10. ACKNOWLEDGMENTS : The Board of Directors wish to place on record its appreciation for the sincere and committed efforts put by the Employees, Shareholders, Customers, Dealers and Bankers for the construction and growth of the Company. BY ORDER OF THE BOARD PLACE : HYDERABAD A.B.SATYAVAS REDDY DATE : 02-09-2002 CHAIRMAN & MANAGING DIRECTOR