bhor industries ltd Directors report

BHOR INDUSTRIES LIMITED ANNUAL REPORT 2004-2005 DIRECTORS REPORT To The Members, Your Directors are forwarding herewith the Sixty Second Annual Report of your Company together with the Audited Accounts for the year ended 31st March, 2005. FINANCIAL RESULTS: Year ended Year ended 31.03.2005 31.03.2004 (Rs in Lacs) (Rs in Lacs) Income (008) 412 Other Income 391 746 Total Income 383 1158 Total Expenditure 249 962 Operating Profit / (Loss) 134 196 Interest: Net 84 55 Gross Profit / (Loss) 50 141 Depreciation 23 43 Profit / (Loss) before Tax 27 98 Taxation for earlier years - 12 Net Profit / (Loss) 27 86 Balance brought forward from previous year (4624) (4710) Profit / (Loss) carried to Balance Sheet (4597) (4624) Your Company has achieved a turnover of Rs. 22.38 Lacs during the Financial Year 2004-2005 as against Rs. 481 Lacs in the previous year. The Company reported a profit of Rs. 27 Lacs after Interest & Depreciation during the year 2004-05, this is on account of sale of fixed assets of the Company. AUDITORS: The Directors recommend re-appointment of M/s. JCR & Co., Chartered Accountants, Mumbai as Auditors of the Company for the Financial Year 2005- 06. The Company has received certificate from them stating that their appointment, if made, will be in accordance with the limits specified in Section 224 (1B) of the Companies Act, 1956. AUDIT COMMITTEE: The Board of Directors of the Company has constituted an Audit Committee, pursuant to Section 292 A of the Companies Act, 1956. This committee has three Directors, Shri.L.J.Tanna, Shri.T.T.Tanna and Shri. V.Ramamrutham. The committee meets as and when required. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO: Information in accordance with the provisions of Section 217 (1) (e) of the Companies Act, 1956 read with Companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988 regarding conservation of energy, technology absorption and foreign exchange earnings and outgo is given here below: (A) CONSERVATION OF ENERGY: (a) Energy Conservation measures taken: Conservation of energy is given top priority by the Company. During the year, the Company has taken following measures towards energy conservation. 1. Organising the operating procedures in such a way that energy losses are minimised by eliminating idle running. This has helped in reducing Furnace Oil consumption and Energy per unit. 2. Modifying the processes so as to eliminate intermediate steps bringing down per unit consumption of energy. 3. Optimisation of electrical load by matching motor power capacity to the exact operational requirements. (b) Proposals being implemented for reduction of consumption of energy: 1. Reduction in wastage of raw materials leading to lower consumption of energy. 2. Development of products to meet new uses and users in domestic and export market. 3. Development of products aimed at import substitution particularly in automobile sector. 4. Introduction of ingredients to enhance environmental protection. 5. Modification of process so as to reduce the number of steps. The above measures have been instrumental in bringing down the cost of energy per unit of production in addition to improving quality. (B) TECHNOLOGY ABSORPTION: (a) Specific areas in which R &D was carried out by the Company 1. Efforts are directed towards producing products meeting international standards by devising processes and introducing materials to enhance quality. 2. As a result of these efforts, products developed to meet the requirements of new customers resulting in import substitution and cost reduction. (b) Benefits derived as a result of above: i) Product range widened to meet market requirements and to serve new customers. ii) Reduction in cost of new products. iii) Improved quality and productivity. (c) Technology Absorption, adaptation and innovation: The Company has not improved any technology during the year. (C) FOREIGN EXCHANGE EARNINGS AND OUTGO: 2004-2005 2003-2004 Rs Rs Total Foreign Exchange earned Nil 3,67,755 Total Foreign Exchange used Nil 14,49,746 RESPONSIBILITY STATEMENT PURSUANT TO SECTION 217 (2A) & 217 (2AA) OF THE COMPANIES ACT, 1956: Section 217 (2A), No employee is paid remuneration above Rs. 24 Lacs per year. Section 217 (2AA) of the Companies Act, 1956, the Board of Directors state that: i. in the preparation of the Annual Accounts, the applicable Accounting Standards have been followed except wherever otherwise disclosed. ii. the Company has selected and applied such Accounting Policy consistently and judgements and estimates are made in reasonable and prudent manner so as to give true and fair view of the State of Affairs of the Company as at the end of the financial year and profit of the Company for that period, iii. proper and sufficient care has been taken for maintenance of accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and preventing/detecting fraud and other irregularities, iv. the annual accounts are prepared on a going concern basis. HUMAN RESOURCES: The Company is having qualified and trained employees who are responsible to both customers needs and changing economic scenario. Employees relations were cordial and work atmosphere was congenial during the year. ACKNOWLEDGEMENT: The Directors place on record their appreciation for the co-operation given by Bankers, Shareholders, Dealers, Valued Customers and the Employees of the Company during the year under review. For and on behalf of the Board K.J.Tanna T.T.Tanna Director Director Mumbai, July 20, 2005