akar laminators ltd Directors report

ANNUAL REPORT 1998-99 AKAR LAMINATOR LIMITED DIRECTORS REPORT Your Directors have pleasure in presenting the Tenth Annual Report with the Audited Statement of Accounts for the year ended 1999. DIVIDEND In order to meet the present future Working Capital requirements your Directors believe the Company should continue to build and preserve financial strength in the long term interest of the company and hence do not recommend payment of Dividend for the year under review. OPERATIONAL, PERFORMANCE Your Company has continued the trend of growth at the steady rate achieving the turnover of Rs. 98.74 crores during the year under review compared to Rs.84.98 Crores in the previous year registering an increase of more than 16% over the previous year. The Profit before interest, depreciation and taxation (operating profit) jumped from Rs, 13,48 crores in the previous year to Rs.15.77 crores in 1998-99. However. the net profit during the year reduced marginally to Rs, 293,53 lacs compared to Rs. 349.95 lacs in the previous year mainly on account of the charge of higher depreciation from current years profit. Due to the healthy marketing segments. the company is hopeful of securing better performance and the current years operations are expecled to reflect further growth and improvement in profitability of the company in the coming years. FUTURE OUTLOOK The Company is in the final stages of implementing the scheme for modernisation and product mix up-gradation. The benefits of the schedule are expected to accrue from December. 1999 onwards as a result of which the operations and profitability are expected to improve in the year 2000, Y2K COMPLIANT The Company has taken appropriate steps to be Y2K compliant. The software packages being used by accounts / commercial departments & plants are already Y2K compliant. Hence the company does not foresee any operational collapses due to Y2K problem INDUSTRIAL RELATION The industrial relation throughout the period remained cordial. DIRECTORATE Shri Inder Chand Jain and Shri Srujal Dalal, Directors of the Company have resigned during the year under review due to personal reasons. Your Directors place on record the appreciation of valuable services received from time to time during the tenure of their directorships. During the year Shri Hitesh.R.Shah & Shri Vatsal.S.Parikh have been appointed as an Additional Directors on the Board of the company to strengthen the Board Under the Provisions of the Companies Act, 1956 and the Articles of Association of the Company Shri Rajesh Sheth retires by rotation at the ensuing Annual General Meeting and is eligible for reappointment. AUDITORS M/s Mehta Lodha & Co; Chartered Accountants, Ahmedabad, the statutory Auditors of the Company retire at the ensuing Annual General Meeting and being eligible offer themselves for reappointment. COMPANIES (DISCLOSURE ,OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988 CONSERVATION OF ENERGY, RESEARCH & DEVELOPMENT AND TECHNOLOGY ABSORPTION: All energy conservation measures are taken on a continuing basis on various fields Addilional investments are also being made on installation of new equipments and modification of existing equipments. wherever necessary to reduce energy consumption These measures have yielded positive results in reducing energy consumption. The company is not covered under the list specified in Form A" of the Companies (Disclosure of Particulars in-the Report of Board of Directors) Rules, 1988. FOREIGN EXCHANGE EARNINGS AND OUTGO (Rs.in.Lacs) a.C.l.F. value of Imports of Raw Materials. Capital Goods. Stores & Spares 11.13 b. Expenditure incurred in Foreign Currency - Travelling 2.76 c. Advance For Capital Goods Nil d. Earnings in Foreign Currency Nil PARTICULARS OF EMPLOYEES The information required in terms of Section 217(2A) of the Companies Act. 156 read with Companies (Particulars of Employees) Rules. 1975 and forming part of this report is given in the Annexure to the Directors Report. ACKNOWLEDGEMENTS We take this opportunity to express our deep sense of gratitude to Financial Institutions, Banks for their continued support and gratitude. We would like to place on record our sincere appreciation of the dedication and hard work put in by every member of Akar team for the Companys achievements. For & On behalf of the Board Place: Mumbai VINOD SHETH Date: 3rd December, 1999. CHAIRMAN & MANAGING DIRECTOR