city lifts india ltd Directors report

1996 CITY LIFTS (INDIA) LIMITED DIRECTORS REPORT Your Director have pleasure in presenting Tenth Annual Report and the Audited Accounts for the financial year ended 30/06/96. AMALGAMATION As per scheme of Amalgamation sanction by the Honourable High Court of Mumbai. City Financial Services Limited and City Delstar Cable Limited were amalgamated with the Company w.e.f. 1st July, 1995. DIVIDEND: Your Director have not recommended any dividend for the year 1995-96 (Previous year NIL). Due to the recession in the construction industry and also slackness in the market the profit has droped compared to the year 1994-95 and further internal funds are used in the wada project, so we are unable to pay the Dividend. MSFC has sanctioned the Term loan of Rs 240 Lacs for new project but the disbursement could not be received from MSFC due to incompletion of Amalgamation Procedure which is one of the condition for disbursement. The approval for amalgamation which was pending with High Court could received only latter part of the year as funds could not be availed from MSFC. This also has delayed progress of wada. Process of issuing shares to the new shareholders of Amalgamating Company and additional listing procedure is delayed due to the same above said reason and the work is being expediated. YEAR IN RETROSPECT: During the year 1995-96 the company has shown improvement in its turnover by Rs. 171.46 lakhs due to the above said amalgamation. FOREIGN EXCHANGE EARNING & OUTGO: As required under section 217(1)(e) of The Companies Act, 1956 read with Companies (Disclosure of particulars in Report of Board of Directors) Rules, 1988 the information relating to conservation of energy, technology absorption and foreign exchange and outgo is annexed. DIRECTORS: Mr. Ketan C. Dedhia and Mr Atul Merchant, Directors of the Company, retire by rotation at the ensuing Tenth Annual General Meeting and being eligible, will be proposed for re-election. The Director Mr. Tarachand Jain has retired at his own will due to some health problems. AUDITORS: M/s: R.R. SUVARNA & CO. Chartered Accountants, Statutory Auditor of the company are retiring at the forthcoming Annual General Meeting and being eligible, offer themselves for reappointment & the same are reappointed as Statutory Auditor. The specific notes forming part of the Accounts referred to the Auditors Report are self explanatory & do not require any further clarification. PARTICULARS OF EMPLOYEES: Particulars of employees as required under section 217(2A) of the Companies Act, 1956, is given in annexure forming part of this Report. ANNEXURE TO THE DIRECTORS REPORT The Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988. (A) CONSERVATION OF ENERGY (a) Energy Conservation measures taken: The companys operations involve low energy consumption. However, following conservation measures have been implemented. 1. The use of natural light enhanced by providing glass skylights. 2. Use of energy-efficient sodium vapour lamps in place of mercury vapour lamps and fluorescent tubes. b. Additional investments and proposals, if any being implemented for reduction in consumption of energy: Not applicable c. Impact of the measures at (a) & (b) above for reduction in consumption of energy: The measures taken above have resulted in saving in energy consumption. (B) TECHNOLOGY ABSORPTION Form B Form for disclosure with respect to Technology Absorption. Research and Development (R & D) 1. Specific areas in which R & D is carried out; Elevator 2. Benefits derived as a result of the above R & D: a) Introduction of new products. b) Improvement in overall performance, reliability, serviceability and safety of the existing products. c) Cost reduction, primarily by the efficient use of indigenous raw materials and improved designs. d) Saving in energy consumption of existing and new products. 3. Future plan of Action To continue R & D in relevant areas to achieve benefits listed under (2) above. 4. Expenditure on R & D: Rs. a) Capital 136627.20 b) Recurring -- c) Total 136627.20 (d) Total R & D expenditure as percentage of total turnover 0.31%. Technology Absorption, Adaptation and Innovation 1. Efforts in brief, made towards technology absorption adaptation and innovation.: Introduction of Hydraulic elevator with appropriate technology using totally indigenous components. Improved design, material and performance in capsule elevator with good aesthetic features to meet customers changing tastes and needs. 2. Benefits derived as a result of the above efforts, i.e. product improvement, cost reduction, product development, import substitution etc. Improved performance, enhanced aesthetics, serviceability, space saving and reduction in elevator callback. (C) FOREIGN EXCHANGE EARNING & OUTGO 1. Activities relating to exports : Not applicable 2. Foreign exchange earned : Not applicable 3. Foreign exchange outgo : Not applicable for and on behalf of the Board V. RAJAGOPAL K.K. SHAH Managing Director Director Place : Mumbai Dated : 9th November, 1996.