ratna drugs ltd Directors report

RATNA DRUGS LIMITED DIRECTORS REPORT To, The Members, Your Directors have pleasure in presenting the Eleventh Annual Report together with the Audited Statements of Accounts for the year ended 30th June, 1998. 1. FINANCIAL RESULTS The Company has incurred an amount of Rs. 3,01,59,256/- as Capital expenditure upto 30/06/98 which is pending for Capitalisation. As Company is implementing the project and yet to commence commercial production. Provision depreciation on Building Plant & Machinery has not been made. 2. WORKING RESULTS The company has incurred expenditure of Rs.24.15 lacs during the current year towards implementation of Project which is shown under unallocated expenditure & the Company will be commencing commercial production very soon. 3. FINANCE The company is negotiating with various Financial Institutions and Banks for availments of term loan & Working Capital requirements. 4. DIVIDEND The project is in the completion stage and actual production is yet to start, hence the Directors have not recommend any dividend. 5. DIRECTORS According to the provisions of the companies act 1956 and companies Articles of association Mr. T.A.Dalvi retires by rotation and is eligible for reappointment. Your Board of Directors has appointed , Mr. M.S.A Dalvi Additional Director (Finance). Prof. M.Q Dalvi & Mr. V.V. John resigned as director on health grounds. Board of Director is very much thankful to them for their services guidance and help. 6. COMPANY SECRETARY The Company is looking for a suitable candidate for Company Secretary in place of the person who has resigned. 7. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGOING The Company has no manufacturing activity at present and therefore the disclosure of particulars as required under Section 217(1)(e) of the Companies Act, 1956 in so far as it relates to the conservation of energy and technology absorption and foreign exchange earnings and outgoing is not applicable. 8. PARTICULARS OF EMPLOYEES Provision of Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 are not applicable to the Company, since none of the employees of the Company was in receipt of the total remuneration of Rs. 3,00,000/- per annum or Rs. 25,000 per month during the financial year, under review. 9. AUDITORS REPORT The observations made in respect of Accounting for Directors Remuneration, Loans and Advances are self explanatory. 10. AUDITORS M/s. S.K. Kavathekar & Co. Chartered Accountants, Mumbai hold office until the conclusion of the forthcoming AGM. 11. ACKNOWLEDGMENT Your Directors wish to place on record their appreciation and acknowledge with gratitude the support and co-operation extended by the Bankers, Shareholders, Staff and look forward to their continued support. By order of the Board of Directors For RATNA DRUGS LIMITED Place: Mumbai Dr. Ali A. Dalvi Dated: 29.01.1999 Chairman & Managing Director