somani swiss industries ltd Directors report

SOMANI SWISS INDUSTRIES LIMITED DIRECTORS REPORT Your Directors take pleasure in presenting the Annual Report of the Company together with Audited Accounts for the year ended on 31 st March, 1998 OPERATIONS Existing Business Your company has performed very well during the financial year and the Companys Steel Division and Maruti Sales & Services Dealership. have been doing well even during depressed market conditions as is evident from the results shown above. PROJECT It was decided by the Shareholders in the last Annual General Meeting to change the parameters of the Project h1to manufacturing of Polyester Polymer Bottlegrade Chips. Many of the Share allottees have not paid their call money inspite of repeated reminders. ln the meantime, the depressed market conditions continue to prevail in the industry. Further sanctions have been imposed by U.S.A. and other countries. thereby many foreign lenders have either deferred or stopped lending to Indian Industry. All these factors have delayed finalising financing plan for the Polyester Polymer Bottlegrade Chips Project and consequential delay in implementing the project. In view of the over capacity in the Polyester Filament Yarn Industry, it was decided to change the product mix to produce Polyester Polymer. which could be exported. The company took effective steps by signing foreign collaboration for this Polyester Polymer Project. However the target export market was largely South East Asian the company has been forced to put on hold the project till the revival of the South East Asian economies. In view of the above, Projection vs Performance are not relevant and hence not given. DIRECTORS During the year, Mr. J.R. Gagrat, Alternate Director to Mr. W.F. Buchel, resigned due to pre-occupation. The Board placed on record their appreciation for the service rendered by him. Mr. Shailendra Swarup and Mr. J.S. Nanda are retiring by rotation in the ensuing Annual General Meeting and being eligible. offer themselves for re-election. AUDITORS M/s. Pramod Kumar Co., Chartered Accountants of Delhi, Auditor of the Company, retire at ensuing Annual General Meeting and being eligible. offer themselves for re-appointment. Joint Auditors M/s. Suresh Binani and Associates. New Delhi retire at the ensuing Annual General Meeting and have not offered themselves for re-appointment. The Company has received a notice from a member signifying his intention to propose the name of M/s. S. Chand Mittal Co., Chartered Accountants New Delhi. for appointment as Joint Auditors of the Company. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGo, (U/S 217(I) (e) OF THE COMPANIES ACT. 1956. Conservation of Energy : Measures have already been taken and are in force to conserve Power, Fuels etc. Technology : Setting up Project With Foreign Technology is under initial stage of implementation. Foreign Exchange lnflow : NIL Foreign Exchange Cutflow : NIL PERSONNEL & INDUSTRIAL RELATIONS Your Directors are pleased to inform that the Industrial Relations during the year under review remained cordial and no "Man Days" were lost. PARTICULARS OF EMPLOYEES The company did not have any employee who was in receipt of remuneration to be reported under sub section 2A of Section 217 of the Companies Act 1956 as such no statement is furnished under the said section. ACKNOWLEDGMENT The Directors place on record their appreciation for Banks. State Governments. RIICO and other agencies for valuable assistance and guidance. The Directors also place on record their appreciation for the contribution of employees at all levels for the success. growth and development of the Company. For and on behalf of the Board of Director PLACE : NEW DELHI ASHISH SOMANl DATED : 27th June,1998 Managing Director