mahendra cements ltd Directors report

MAHENDRA CEMENTS LIMITED Annual Report 1997-98 DIRECTORS REPORT Dear Shareholders, Your Directors have pleasure in submitting the Fourteenth Annual Report and the Audited accounts of the Company for the year ended 30th September, 1998. WORKING RESULTS The Indian Cement Industry passed through a very difficult year. The Prices were under severe pressure. This was largely because of a demand-supply mismatch. At the same time, the Industry was burdened with increase in input cost. However, during the year under review the turnover of your company reached at level of Rs.352.04 lacs as against Rs.590.96 in the previous year. The Net Loss before interest and depreciation comes to Rs.230.31 lacs as against loss of Rs.84.29 lacs in the previous year, due to loss of production as compared to previous year. FUTURE OUTLOOK The Company is contemplating that demand of cement would be increased in next years since 20 Lakhs additional dwelling units will be built up as per finance budget 1998. EXTENSION OF FINANCIAL YEAR The Board of Directors of the company, with the permission of Registrar of Companies M.P. extended the Financial year 1997-98 ending on 31st March, 1998 upto 30th September, 1998. Hence the financial year 1997-98 will be of 18 months. LISTING The Shares of the company are listed on MP (Regional) Mumbai & Delhi Stock Exchanges and the listing fees have been paid to be Stock Exchanges in time except Delhi & MP Stock Exchange. DIVIDEND In view of the heavy losses your Directors are unable to recommend any Dividend on Equity Shares for the year under review. DIRECTORS Mr. J.S.Bagga, Director of the Company retires by rotation & being eligible offers himself for reappointment. During the year Mr. J.S.Bagga has resigned from the Managing Directorship and Shri S.S.Arora from the Directorship of the company. However, in place of Shri J.S.Bagga Mr.Bharat Singh Bagga has been appointed as Managing Director. However Mr. J.S.Bagga will continue as director of the company. The Board has also appointed Shri Sunder Singh Bagga as Executive Director and Shri Harmendra Singh Bagga as additional director of the company. The Board recommends their appointments. AUDITORS M/s Rakesh Narendra Kumar & Co., Chartered Accountants, Auditor of the Company retire at the ensuing Annual General Meeting and are eligible for re-appointment. REFERENCE OF BIFT As the networth of your company has been fully eroded, your directors have formed an opinion to make a reference to Board for Industrial & Financial Reconstruction (BIFR) under section 15(1) of Sick Industrial Companies (Special Provision) Act, 1985. AUDITORS REPORT The Auditors in their report have referred to the notes forming part of accounts, which are self explanatory. FIXED DEPOSITS Your Company has not accepted any deposits from the public during the year. PARTICULARS OF EMPLOYEES None of the employees of the Company is covered under the provision of Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975. PARTICULARS OF CONSERVATION OF ENERGY ETC. Information regarding conservation of energy etc., as per provisions of Section 217(1)(e) of the Companies Act 1956 are set out in the statement annexed hereto forming part of this report (Annexure-A). INDUSTRIAL RELATIONS Your Directors are happy to report that the Industrial relations continued to be cordial during the year under review. Your Directors wish to place on record their appreciation for contribution made by the employees at all levels. ACKNOWLEDGEMENT Your Directors take this opportunity to offer their sincere thanks to the various department of Central and State Governments, Financial Institutions, Banks, Customers and Suppliers for their continued valuable assistance and support. Your Directors also wish to place on record their sincere appreciation of dedicated efforts by officers, staff and workers of the Company at all levels. For and on behalf of the Board B.S.Bagga Managing Director Place: Indore Date : 2nd November, 1998