mylan laboratories ltd Directors report

HANUMAN TEA COMPANY LIMITED ANNUAL REPORT 2004-2005 DIRECTORS REPORT TO THE SHARE HOLDERS The Directors have pleasure in presenting the Forty Third Annual Report and the Audited Statement of Accounts of the Company for the year ended 31st March 2005 FINANCIAL RESULTS 2004-2005 (31st March, 2005) (Rs. in Lakhs) Gross Profit / Loss (before depreciation, interest and taxation) (39.85) Less a) Depreciation 123.74 b) Interest 335.98 c) Provision for Tax Nil 459.72 Profit after Tax (499.57) Add Balance brought forward from the previous year (3710.43) Loss carried forward 4210.00 DIVIDEND The Directors of your Company have not recommend any dividend due to continous losses. EXPANSION & MODERNISATION Due to paucity of funds no expansion programme could be carried out at the Tea Estates OUTLOOK The Tea Prices are under severe pressure. The long term health of the industry is uncertain. there is also major challenges as a result of cash flow problem and overall resource crunch. Work at Ramjhora T.E. was suspended on 10th August 2002 due to labour unrest. CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING AND OUTGO Particulars as required under Companies (Disclosure of Particulars in Report of Board of Directors) Rules, 1988 are given in the annexed statement DIRECTORS RESPONSIBILITY STATEMENT (Pursuant to Section 217 (2AA) of the Companies Act, 1956) Your Directors are happy to put on record that the items of Responsibility Statement stated below pursuant to Section 217 (2AA) of the Companies Act, 1956 are being followed as a matter of practice. However, as required statutory, your Board affirms that: i) The accounting standards as applicable to our Company and corroborated by the Companies Act, 1956, have been followed in course of preparation of the Annual Accounts for the year ended 31st, March, 2005 and there have not been any material departures to warrant further explanation. ii) The accounting policies as have been followed are bring continued in course of preparation of the Annual Accounts for the year ended 31st March 2005, so as to exhibit a true and fair view of the state of affairs of the Company and the loss for that period as have been corroborated by the Statutory Auditors of the Company. iii) The Statutory Auditors Report confirm in regard to adequate controls and internal audit system being followed by the Company in course of running of the Companys affairs as also for maintenance of the assets. Your Directors take every caution to remain to relate such control measures to the benefit of the Company and to avoid any fraud or irregularities. iv) The Companys Accounts for the year ended 31st March, 2005 have been prepared on a going concern basis as earlier. v) During the year total outstanding of Centurian Bank was Rs.1,89,59,696/- out of this Rs.1,32,58,274/- was principle and Rs. 57,01,422/- was interest. The same was settled full & final under one tune settlement (OTS) were carried out by payment of total consideration of Rs. 25 lacs. DIRECTORS Shri Shyamal Santra & Shri Laxminarayan Board retires by rotation and being eligible, offer themselves for reappointed. The observation made in the Auditors Report stave been suitably clarified in the notes on Accounts which are self-explanatory. LISTING OF COMPANYS SHARES The Equity Shares of the Company are listed at Culcutta, Mumbai, Delhi & Guwahati Stock Exchanges and Annual Listing Fees have not been paid after the year 2001-2002. PERSONNEL Relation with employees at all levels of the Company in the plantations and in Kolkata remained cordial during the year under review except of Ramjhora Tea Estate. Information as per Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of the Employees) Rules, 1975 is not applicable. By Order of the Board Kolkata Sanjay Pramanick 11th August, 2005 Director ANNEXURE TO THE DIRECTORS REPORT Particulars of Conservation of energy, Technology Absorption and Foreign Exchange Earnings and outgo-in terms of Section (217 (1) (e) of the Compares Act, 1988 read with the Companies (Disclosure-of Particular in the Report of Board of Directors) Rules, 1968 forming part of Directors Report for the year ended 31st March, 2005 Form A Forms for Disclosure of particulars with respect to conservation of Energy A. Power and Fuel Consumption i) Electricity 2004-05 2003-04 a) Purchased Unit KWH - 267242 Total Amount Rs. - 2596686 Rate/Unit Rs. - 9.72 b) Own Generation through Diesel Generators Unit KWH - 151275 Unit per Ltr. of Diesel Oil KWH - 1.62 Cost/Unit Rs. - 14.38 ii) Coal Quantity M.T. - 1012.37 Total Cost Rs. - 2029430 Average Rate per MT Rs. - 2001.80 8. Total Power & Fuel Consumption per unit Production of Tea Product - Tea Kg. - 670309 Electricity Purchased Rs. - 3.87 Own Generation Rs. - 2.47 Coal Rs. - 3.03 Notes During the year factory was not run only Green Leaf was sold therefore, the energy Consumption is NIL. Form B B. Form for Disclosure of Particulars with respect to Technology Absorption, Research and Development (R & D) 1. Specific areas in which R & D } carried out by the Company } The Company subscribes to Tea 2. Benefits derived as a result } Research Association which is of the above R & D } registered under Section 35 (1) (ii) 3. Future plan of action } of the Income Tax Act, 1961. 4. Expenditure on R & D (a) Capital (b) Recurring (c) Total (d) Total R & D expenditure as a percentage of total turnover - Technology absorptions, Adaptation and Innovation 1. Efforts in brief made towards technology absorption, adaptation and innovation. : Not Applicable 2. Benefit derived as a result of the above efforts e.g. product development, import substitution : Not applicable 3. In case of imported technology (imported during the last 5 year reckoned from the beginning of the financial year). : Not Applicable Following information may be furnished (a) Technology imported } (b) Year of import } (c) Has technology been fully absorbed? } (d) If not fully absorbed, areas where } Not Applicable this has not taken place, reasons } therefore and future plan. of action. } C. Foreign Exchange Earnings and Outgo 2004-2005 2003-2004 Earnings - From Direct Export of Teas - - Outgo - Directors Travelling - - Capital Goods - - Kolkata 11th August, 2005 By Order of the Board SANJAY PRAMANICK Director MANAGEMENT DISCUSSION AND ANALYSIS Industry Structure & Development The Tea Industry has been under severe strain for the past six years. The tea prices across all auction centers have been falling and production is increasing. The increasing no. of bought leaf factories has introduced inferior quality tea Into the market phase with result in pulling down the prices of better quality teas. Wages of tea plantation labour have been increasing each year as have the cost of subsided ration, free medical expenses and other social cost at the tea estate. Various banks and financial institution who have had NPAs in the tea industry do not want to extent further support to the tea sector. Performance Review Due to paucity of funds and militancy of work force of Ramjhora Tea Estate in Dooars continued to be under lockout. Sonajuli Tea Estate was selling its green leaf to outside tea states, as the tea-processing factory in Sonajuii was not operational. During the year a one-time settlement with the Centurion Bank was entered into Centurion Banks principal and interest figure were Rs.132513274/- and Rs. 5701422/- and the total amount paid by the Company under OTA Scheme was Rs. 25 lacs. Since the Company is registered under BIFR, we await the BIFRs decision on revival of the Company and fresh infusion of funds by banks and financial institution. Internal Control System The Company has adequate internal control system commensurate with the size of the Company and nature of its business. These control procedures ensure efficient use and protection of resources, compliance with established Company policies, guidelines and statutes. The internal control systems are reviewed at regular intervals through Management, Internal and Internal and Statutory Audits and the same are modified to blend with changing business environment. Cautionary Statement Statements made herein describing the Companys expectations or predictions are forward-looking statements. The actual results may differ from those expected or predicted. Prime factors that may make a difference to the Companys performance include market conditions, input costs, industrial relations, Government regulations, economic developments within and outside the country, settlement of debts with lenders, sanction of Rehabilitation Scheme try BIFR and other incidental factors and developments.