gleitlager india ltd Directors report

GLEITLAGER (INDIA) LIMITED ANNUAL REPORT 2001-2002 DIRECTORS REPORT To The Members Gleitlager (India) Limited Your Directors present the 40th Annual Report together with the Audited Statement of Accounts of the Company for the year ended 31st March, 2002. Dividend: In view of the losses incurred, your Directors do nut recommend any dividend for the year under review. OPERATIONS: The total income for the year Rs.1445.47 lacs which is inclusive of Rs.400.00 lacs received from the property development activities. The companys sales amounted to Rs.867.22 lacs as compared to Rs.1124.09 lacs in the previous year.The paucity in working capital funds has led to the decline in production/sales. On the other side, the fixed costs such has salary and wages and interest continued to remain on higher side resulting in to losses. The company has successfully completed its programme of expansion of Copper Lead sinter plant and has started the commercial production from July 2002. The company has already begun to explore local and international markets to procure further orders. The company has received Arbitration Award in the matter of Arbitration with Tata Housing Development Co. Ltd. thereby settling all pending issues. In terms of the said Award the company has received a sum of Rs.4 Crores(Four Crores only) from Tata Housing Development Co.Ltd. thereby the total amount received by 31st March 2002 aggregating to Rs.11.40 Crores (Eleven point forty crores only) and has further received Rs. 1 Crore in June, 2002. In terms of the settlement our company has to forego in favour of Tata Housing Development Co.Ltd. from its share at a later date Rs.4 Crores(Four Crores only). During the course of the year, the company has taken a review of the inventory of non-moving and mismatched stock of Work-in-progress. The technical inspection/ evaluation has revealed that these items are not marketable and their retreival would be costly/unviable and these are not fit for further processing. Consequently the company has during the year made provision for the same aggregating to Rs.147.44 lacs. The networth of the company has been fully eroded and the company has become a sick company under the provision of Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). The company is required to make a reference to the Board of Industrial and Financial Reconstructions (BIFR). The financial institution who are term lenders of company have filed a case with Debt Recovery Tribunal, Mumbai for recovery of its outstanding dues. The company is negotiating with financial institution to arrive at some amicable solution and settle the matter. Directors: Mr.Ravindra C.Kapadia retires by rotation at the 40th Annual General Meeting and is eligible for reappointment. Deposits: There has been no deposits due for repayment before 31st March 2002 which has remained unpaid or unclaimed. Debentures: The non-convertible debentures due for redemption in June 2000 are fully redeemed under a settlement arrived at between the debenture holders and the company. Conservation of Energy etc.: Particulars in regard to Conservation of Energy and Technology absorption prescribed under Section 217(1)(e) of the Companies Act, 1956, read with Companies (Disclosure of particulars in the Report of the Directors) Rules, 1988, to the extent applicable are given in AnnexureI forming part of this Report. There were no employees during the year under review, who were drawing remuneration in excess of Rs.6,00,000/- per annum or Rs.50,000/- per month. Hence, the name and other particulars as required by Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975, have not been furnished. Auditors: M.M.Nissim & Company, Chartered Accountants, Mumbai, retire at the conclusion of the forthcoming Annual General Meeting and being eligible offer themselves for reappointment. Acknowledgements: The Directors also wish to place on record their deep appreciation of the services of the devoted Workmen, Staff and Executives of the company. FOR AND ON BEHALF OF THE BOARD OF DIRECTORS J. K. MORARJI Chairman & Managing Director Place : MUMBAI Dated : 10th October, 2002 ANNEXURE - I TO THE DIRECTORS REPORT A. CONSERVATION OF ENERGY 1. Conservation of Energy cost: By adding additional capacitors Power Factor is improved from 0.94 to 0.99 and thereof getting rebate from MSEB to the extent of Rs. 20,000/- every month. B. TECHNOLOGY ABSORPTION: a. Research & Development: 1) Specific areas for which R & D is carried out by the Company and Benefits derived from R & D:- The Company has successfully manufactured trial batch of Thickwall flange bearings from bimetal strip instead of centrifugal casting. 2) Future Plan: The Company has already started work of "Quality of International Standard" ISO 9002 Certification & expects to get final Certificate by March, 2003. 3) Expenditure on R & D The Company has not separately maintained expenditure incurred on R & D and hence no specific figures are mentioned. b. Technology Absorption, Adaptation and Innovation: Efforts and Benefits: 1. The Company has successfully developed Tata, Cummins B Series bearings including Thrust Bearings both for indigenous & Export markets. C. FOREIGN EXCHANGE EARNINGS AND OUTGOINGS: The Companys foreign exchange earnings and outgoings are referred to in notes on accounts.