orton synthetics ltd Directors report

1995 ORTON SYNTHETICS LIMITED DIRECTORS REPORT Your Directors present the Fourth Annual Report to be read together with the Audited Balance Sheet and the Profit and Loss Account for the 18 months period ended March 31, 1995. EXISTING OPERATIONS: As indicated earlier, with a view to creating a market place for its future production as a market seeding program, the Company has successfully utilised specialised large processing facilities from a renowned process house and has marketed the finished goods processed therein all over India. The turnover as will be seen has increased from Rs. 8141.38 lacs to Rs. 9556.56 lacs and correspondingly the Gross Profit has gone upto Rs. 765.29 lacs from Rs. 513.62 lacs and Profit before Tax to Rs. 576.24 lacs from Rs. 318.09 lacs and Net Profit stands at Rs. 576.24 lacs compared to Rs. 276.09 lacs earlier. NEW ACTIVITY As you are aware the Time-Share concept of Holidaying developed to a great extent in India. M/s. Rank Hotels & Resorts Private Limited are marketing Debentures which have Time-Share Rights attached to it. Over time the said Debentures appreciate representing escalating real estate prices and Hotel Tariffs. An Investment in this activity with the Resort is expected to give a 20% return by way of appreciation in the current year from the proceeds of the Debentures when sold. With this view point the Company has made an Investment of Rs. 15 crores in the said 0% Fully Convertible Debentures of the above Company, which have Time Share Rights attached to it. DIVIDEND In order to augment the long-term resources of the Company for its ongoing project, the Board of Directors does not recommend any dividend. PROJECTS: The Company has considered certain readjustments to the project and has accordingly written to the Financial Institutions. Partial Commercial Production has already commenced and full Commercial Production would be achieved progressively by the year end. PUBLIC ISSUE OF SHARES During the period the Company made Public Issue of 2,25,86,700 Equity Shares of Rs. 10/- each for cash at premium of Rs. 5/- per share aggregating Rs. 33,88,00,500 and received good response from the investing public and it was fully subscribed. The Issued and Subscribed Share Capital increased from Rs. 14.60 crores to Rs. 37.19 crores and Share Premium account was credited by Rs. 11.29 Crores. FIXED DEPOSITS The Company has not accepted any Deposits as defined u/s 58A of the Companies Act, 1956 and the Rules framed thereunder during the period under review. INSURANCE All the properties and insurable interests of the Company, including Building(s), Plant & Machinery and Stocks wherever necessary and to the extent required have been adequately insured. DIRECTORS Director Shri N.N. Pai & Shri S.V. Mehta retire by rotation and being eligible offer themselves for re-appointment. Shri B.D. Ushir, Joint legal advisor of IDBI was appointed as its nominee Director on our Board in place of Shri. K.N. Chitnis. The Board records their sincere appreciation for the valuable services rendered by Shri K.N. Chitnis. AUDITORS The retiring Auditors, M/s. S.N. Karani & Company, Chartered Accountants, are eligible for re-appointment and they have also furnished under Section 224(1) of the Companies Act, 1956, a Certificate of their being eligible for appointment. PARTICULARS OF EMPLOYEES The particulars of employees required to be given pursuant to sub-section (2A) of Section 217 of the Companies Act, 1956 are not annexed to this report since there are no employees drawing remuneration of more than Rs. 25,000/- per month. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGOINGS: The company lays a great deal of emphasis on conservation of deployment/layout of the luminaires within and outside the manufacturing areas are carried out keeping in mind the illumination levels required in the different areas. Energy efficient motors have been selected for various manufacturing as well as other engineering services resulting in optimum power consumption. Total energy consumption as per prescribed Form A is as under: Form A (See Rule 2) Particulars with respect to conservation of energy (consolidated for all locations): (A) Power and Fuel Consumption: Current Previous Period period 1. Electricity a. Purchased Units (KWH) 25,98,079 Not applicable since there Total amount (Rs) 75,70,981 was no manufacturing activity Rate/Unit (Rs.) 2.91 as the project b. Own generation NIL was under implementation. 2. Coal NIL 3. Furnace Oil/LSHS NIL (B) Consumption per unit of production: Item Unit of Polyester Texturised Yarn Measurement current Previous period period Electricity KWH 3.10 Not Applicable Notes: 1. Unit of production for the polyester yarn is Metric Tonne. 2. Consumption figures are for the product mix of various deniers of Polyester Texturised Yarn. B. TECHNOLOGY ABSORPTION: There is no imported technology or process-know. Draw - texturising is a well developed technology within the country and hence this is not applicable. C. FOREIGN EXCHANGE EARNINGS AND OUTGO: Earnings in foreign exchange on exports at F.O.B. value. Rs. 7,95,330/-. Foreign exchange outgo on account of import of components, spare parts and other expenditure amounts to Rs. 3,47,188/-. INDUSTRIAL RELATIONS Industrial relations at the Companys Plant at MIDC, Baramati continued to be cordial. ACKNOWLEDGEMENT: The Board places on record its deep and sincere appreciation of the services of the staff and executives of the Company. The Board also wishes to convey its thanks to the Companys esteemed Members, Customers, Banks, Financial Institutions, Central and State Governments for their continued support. For and on behalf of the Board of Directors N.N. PAI CHAIRMAN Place : Bombay Dated : 9th August, 1995.