gandhinagar electronics ltd Directors report

GANDHI NAGAR ELECTRONlCS LIMITED (Formerly Shaw Wallace Electronics Limited) DIRECTORS REPORT DIRECTORS REPORT TO THE MEMBERS Your Directors present herewith their Report and Statement of Accounts for the financial year ended 30th June, 1998. 1. FINANCIAL RESUlTS During the year under review your Company suffered a lower loss of Rs. 22,127,127/- as against a loss of Rs.97,791.337/- in the previous year. Along with the accumulated losses of earlier years the entire networth of the Company has been eroded and the Company has been referred to the Board for Industrial and Financial Reconstruction (BIFR) Due to constraints of working capital, the factory remained closed for the entire period under review In view of the losses your Directors are unable to recommend any dividend for the year. 2. CHANGE IN THE NAME OF THE COMPANY After completion of all the formalities the name of the company has been Changed to Gandhi Nagar Electronics Ltd. with effect from 20th January 1998. 3. REFERENCE TO THE BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION (BIFR) UNDER SECTION 15 AND 23 OF THE SICK INDUSTRIAL COMPANIE (SPECIAL PROVISIONS ACT 1985 During the year under review, the Company was referred to the BIFR who declared the company as sick and directed the company to prepare a Scheme of Rehabilitation and submit the same to ICICI, the Operating Agency. Accordingly, A scheme of rehabilitation has been submitted to ICICI for its consideration. 4 AUDITORS REPORT As regards the observations in the Auditors Report, the relevant notes on the Accounts are self-explanatory. 5. DIRECTORS As reported earlier Mr P. R. Mulchandani has tendered his resignation from the Board of Directors of the Company with effect from 26th March, 1996 and a copy of his resignation has been sent to the Financial Institution for their views thereon. The Company is yet to receive the views of the Financial Institution in this regard. Mr. Rajiv Suri retires by rotation and being eligible, offers himself for reappointment 6. AUDITORS Messrs S.A Pradhan & Co. Chartered Accountants, retire and are eligible for reappointment 7. INFORMATION PURSUANT TO SECTION 217 OF THE COMPANIES ACT 1956 The Statement pursuant to section 217 (1) (e) of the Companies Act 1956 read with Companies (Disclosures of Particulars in the report of the Board of Directors) Rules, 1988 under section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules 1975 are either nil or not applicable as the manufacturing activities of the company remained closed for the full financial year. There were no employees in respect of whom statement is required to be annexed under section 217 (2A) of the companies Act, 1956 read with companies (Particulars of Employees) Rules, 1975. 8. INDUSTRIAL RELATIONS The factory remained closed for the entire period under review. 9. GENERAL Your Directors wish to place on record their appreciation for the valuable support rendered to the Company by its Bankers and Financial Institutions. On Behalf of the Board Place : Mumbai Date : 16th Sept,1998, Director Director