solarson industries ltd Directors report

SOLARSON INDUSTRIES LIMITED DIRECTORS REPORT To the Members, Your Directors present the 11 th Annual Report together with the Accounts of the Company for the year ended 31st March, 1997. OPERATIONS & FINANCIAL RESULTS The financial performance of the Company during the year under review was as under: [Rs. in lacs] 1996-97 1995-96 Income from operations 1180 1082 Profit before depreciation (378) (184) Depreciation 285 282 Net Profit/(Loss) (663) (466) During the year under review, the performance of the Company was slowed down due to lower capacity utilisation. The delay in the implementation of the infra-structural projects in the last two years had affected the demand for H.I.D. Lamps. Though the Company successfully achieved the international quality levels in the PCA Tubes and supplied the full requirements of GE Lighting India. the efforts in the export front did not bring major volumes. The initial supplies of PCA Tubes to USA and Romania have been made and the Company expects better prospects in the coming years. Since your companys products are basically import substitution oriented, the reduction in import duty of finished products in the last three years without corresponding reduction in costs to off-set the same, had also affected the margins of the products in the domestic market. During the year, the company has introduced new products like Self Ballasted Mercury Lamps (SBML), low wattage tubular Sodium lamps. Sodium lamps with internal ignitors etc. and made initial inroads in both domestic and export markets. FUTURE PROSPECTS Your company is operating in high growth high tech segment of Indian industry and hence has sound long term prospects for establishing itself as a focussed player in the energy efficient lamp segment. In order to overcome the current problems and to strengthen the position of the Company, it is felt necessary to go in for a joint venture with a suitable foreign collaborator so as to get global access and latest technology. With the joint venture in place and the Government focus on implementation of infrastructure projects, the Company hopes to achieve greater capacity utilisation through sale of lamps and PCA Tubes in the domestic market and international markets. The company is currently undertaking a financial restructuring with a view to reduce the interest burden which will help the company in improving their profitability. The company expects better results in coming years. DIRECTORS Shri B.P. Bajoria and Shri J.N. Sapru, Directors retire by rotation at the ensuing Annual General meeting of the Company and being eligible, offer themselves for re- appointment. AUDITORS The Companys Auditors M/s Lodha Company, Chartered Accountants, retire at the close of the Annual General Meeting and are eligible for re- appointment. The notes to the accounts referred to in the Auditors Report are self explanatory. CONSERVATION OF ENERGY Details of energy conservation and research and development activities undertaken by the Company alongwith the information in accordance with the provisions of Section 217 (1) (e) of the Companies Act, 1956 read with the Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988 are given in Annexure A to the Directors Report. PARTICULARS OF EMPLOYEES Information in accordance with the provisions of Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975, as amended regarding employees forms part of this Report. However, as per the provisions of Section 219(1)(b)(iv) of the Companies Act, 1956, the Report and Accounts is being sent to all shareholders of the Company excluding the aforesaid information. Any shareholder interested in obtaining such particulars may write to the Secretary of the Company. ACKNOWLEDGEMENT Your Directors wish to place on record their sincere appreciation to the foreign collaborators, financial institutions and banks for the support and cooperation extended by them. The Directors also place on record their appreciation for the dedication and commitment of employees at all levels. For and on Behalf of the Board K.K. Bajoria Chairman Place: Calcutta Date : 14.10.1997 ANNEXURE A ANNEXURE TO DIRECTORS REPORT Particulars required under Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 A. CONSERVATION OF ENERGY Not Applicable B. TECHNOLOGY ABSORPTION 1. Research & Development a. Specific areas in which R&D is being carried out by the Company. i. Improvement in Stem machine for assembly of Pinch cracks. ii. Development of low wattage Tubular lamp with indigenously developed glass shell. iii. In-house, development of Ceramic supporters in PCA machinery to be used in lamp assembly out of alumina powder process waste. b. Benefits derived i. Reduction in rejection of lamps due to Stem cracks. ii. Increased product range. iii. Cost reduction and reduction in procurement lead time. c. Future Plan of Action i. Development of PCA Tubes of different wattage for different applications of Sodium Vapour lamps. ii. To produce HPSV lamps of Retrofit type with different colour rendering properties. iii. Higher lamp production through process improvement and additions of balancing equipments. iv. In-house manufacture of Mercury Vapour Arc Tubes. v. Introducing tube type Sodium Vapour Arc Tubes instead of wire type. 2. Technology Absorption, Adaptation and Innovation a. Efforts i. The Company is continuously endeavouring to upgrade its manufacturing technology to improve plant capacity, technical efficiencies and enable manufacture of new products through in house technical development. b. Benefits i. Cost effective manufacturing of international quality products. ii. More satisfied customers.