motherson sumi systems ltd Directors report

1996 ELEGANT PHARMACEUTICALS LIMITED DIRECTORS REPORT The Directors have pleasure in presenting the Sixth Annual Report on the business and operations of the Company and the Audited Statements of Accounts of the year ended 31st March, 1996. DIVIDEND : The Company requires investing in appropriate technology and creating related infrastructure to build strong foundation for its future business strategy. Considering these factors your Directors do not recommend any dividend this year and the entire amount of profit is carried forward to the Balance Sheet. TURNOVER & PROFITABILITY : The turnover of the company at Rs. 1483.56 Lacs was higher by 74.17% as compared with the preceding year. Profit after tax of Rs. 107.49 Lacs was higher by Rs. 22.15 Lacs than that of the preceding year. This was mainly on account of better realisation of Sales. Overall performance of the Company in the current year is satisfactory. FUTURE PROSPECTS : Pharmaceuticals Industry is expected to maintain a reasonable rate of growth. The Company continued to utilise its technological strengths to manufacture bulk drugs in order to meet increasing domestic and export requirements. Your Directors foresee a better performance of the company, the level of which will substantially improve in the future. PARTICULARS OF CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING/OUTGO : The statement pursuant to Section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosure of Particulars in the Report of Board of Directors) Rules,1988 and forms part of the report is annexed hereto as annexure `A. PARTICULARS OF EMPLOYEES : The statement of Particulars of Employees as required under Section 217(2A) of the Companies Act, 1956 is given in the annexure `B which forms part of this report. AUDITORS REPORT : With reference to Note no. (q) of Auditors Report Company has already paid ESIC dues to the concerned authorities. DIRECTORS : Mr. H.B. Shaikh was reappointed as an Executive Director (Marketing) subject to approval at the ensuing Annual General Meeting. Mr. N.J. Vora retires by rotation at the ensuing Annual General Meeting and being eligible offers himself for reappointment. AUDITORS : M/S Pravin P. shah & Co., Chartered Accountants, Auditors of the Company retiring at the conclusion of this Annual General Meeting and being eligible have offered themselves for reappointment. APPRECIATION : We wish to place on record our deep and Sincere appreciation for the contribution made by the workers, staff and executives to the successful performance of the Company. The Board is also grateful to the Companys bankers and financial institutions for their co-operation and assistance. As at As at 31.03.96 31.03.95 POWER AND FUEL CONSUMPTION 1. Electricity : a) Purchased Unit (in 000 Kwh) 463036 311078 Total amount 16.06 10.74 (Rs. in Lakhs) Rate/Unit (Rs.) 3.47 3.45 b) Own Generation : Nil Nil i) Through diesel generator Unit (in `000 Kwh) Units per ltr. of diesel Oil Cost/unit (Rs.) ii) Through steam turbine/Generator 2. Coal Nil Nil Quantity (ltrs.) Total Cost Average Rate 3. Furnace Oil Quantity (ltrs.) 24200 17650 Total amount (Rs. lakhs) 2.17 1.41 Average rate (Rs./ltr) 9.00 8.00 4. Other/Internal Generation Form of disclosure of particulars with respect to absorption of Technology, Research and Development and Foreign Exchange Earnings and outgo : As at As at 31.03.96 31.03.95 Research and Development Nil Nil Technology absorption, adaptation and Innovation Nil Nil (Rs. in Lacs) Foreign Exchange Earnings and Outgo : 1. Total foreign earned 187.89 79.39 2. Total foreign used 163.80 23.56 On behalf of the Board of Directors B.C. Sanghavi Chairman Place : Mumbai Dated : 05.09.1996.