sunku auto ltd Directors report

ANNUAL REPORT 1998-99 SUNKU AUTO LIMITED DIRECTORS REPORT To The Members, As the Financial year of the Company extended up to 31-03-2000 ,your Directors are now presenting a tentative performance appraisal for the period ended 30th Sept, 1999. REASONS FOR SHORTFALL: Due to un-precedented demand recession in the automobile industry and down trend in the prices of the products of competitors and also entry of new players in the market, lower sales realisation and increased cost of inputs have adversely affected the sales and profit margin of the company. DEPOSITES: The Company did not accept any deposits during financial Year under review. SUBSIDIARIES: M/s Appollo Chains & Zips Pvt. Ltd. The audited accounts along with the Directors report for the year ended 31-03-1999 in respect of the above subsidiary company is annexed as required u/s 212 of the Companies Act, 1956 DIVIDEND: Due to inadequacy of profits, your Directors do not recommend the dividend for the Financial Year under consideration. OPERATIONS: The operations of the Company for the year under review are satisfactory. The Sales for the Year is Rs. 1 138 lacs (for the 12 months period) despite the prevailing market conditions and tough competition. The Company is taking steps to substantially increase the production. DIRECTORS: Sri M V Narayana Rao will retire by rotation at this Annual General Meeting and, being eligible, offers himself for re-appointment. Smt S Annapurna will retire by rotation at the ensuing Annual General Meeting, and being eligible, offers herself for re-appointment. INDUSTRIAL RELATIONS Industrial relations are cordial. Your directors wish to express their appreciation for the dedicated services rendered by the staff, officers and workers of the company. ACKNOWLEDGEAENTS: Your directors take this opportunity to place on record their great appreciation and gratitude for the whole-hearted support,assistance, co-operation and valuable guidance that has been coming from Induslnd Bank Ltd., S.P Road, Secunderabad and also from Central and State Governments and all those who are associated with the Company more particularly the investors who have reposed their confidence in the company. On behalf of the Board For Sunku Auto Limited PLACE Nyderabad (M.V.NARAYANA RAO) DATE: 29.11.99 ANNEXURE: Information as per Section 217(1 )(e) read with the Companies (Disclosure of particulars in the Report of Board of Directors Rules. 1988 and forming part of the Directors Report for the year ended 30th September, 1999 (A) CONSERVATION OF ENERGY a) Energy Conservation Measures taken : Nil b) Additional investment and proposals,: Nil if any being implemented for reduction of consumption of energy c) Impact of the measures at (a) and (b) : Nil above for reduction of energy consumption and consequent impact on the cost of production. d) Total energy consumption and energy : Nil consumption per unit of production (B) TECHNOLOGY ABSORPTION: (e) Efforts made in technology absorption : Nil as per Form B FORM B (See rule 2) Form for disclosure of particulars with respect of absorption Research and Development (R & D) 1. Specific areas in which R & D carried out by the company. A new model vehicle 6+1 seater has been developed in the in- house and sent to ARAI Pune for statutory approval and already clearance received from them. 2. Benefits derived as a result of the above R & D. The Commercial vehicles are already released in the market for which there is good response from the market 3. Future plan of action A regular plan has been chalked out to develop some more new models of vehicles and relevant components in the in-house. 4. Expenditure on R & D: (a) Capital Nil (b) Recurring Nil (c) Total Nil (d) Total R & D expenditure Nil as a percentage of total turnover. Technology absorption,adaptation and innovation 1. Efforts, in brief, made towards technology absorption,adaptation and innovation. Nil 2. Benefits derived as a result ot the above efforts, e,g, product improvement,cost reduction,product development,import substitution, Nil etc. 3. In case of imported technology (imported during the last 5 years reckoned from the beginning of the financial year), following information may be furnished: (a) Technology imported Nil (b) Year of import Nil (c) Has technology been fully absorbed ? Nil (d) If not fully absorbed,areas Nil where this has not taKen place, reasons therefor and future plans of action. (C) FOREIGN EXCHANGE EARNINGS & OUTGO (f) Activities relating to exports, initiatives taken to increase exports, development of new export markets for products and services and export plans. : Export of Auto Rickshaws. (g) Total Foreign Exchange used and earned : $ 6.282.