hitechi jewellery industries ltd Directors report

HITECHI JEWELLERY INDUSTRIES LIMITED ANNUAL REPORT 2000-2001 DIRECTORS REPORT To The Shareholders Hitechi Jewellery Industries Limited Mumbai Your Directors have pleasure in placing before you the 9th Annual Report together with the Audited Statement of Accounts for the year ended 31st March 2001. FINANCIAL RESULTS During the year under review your Company achieved a turnover of Rs.5969.44 lacs representing an increase of 14.76 percent over Rs.5197.22 lacs in the previous financial year 1999-00. Despite the growth in the companys turnover, the overall gross margin, however, continued to be constrained, as a result of substantial production activities of the Company being confined to plating / assembling operations of outsourced semi-finished / finished items wherein the margins are lower. The continued working capital constraints faced by the company inevitably lead to the company focusing on plating / assembling operations as mentioned above. A significant achievement has been the companys ability to successfully operate the EOU manufacturing unit located at bhayandar which significantly contributed to companys overall profitability during the year. The net profit during the year stood at Rs.42.56 lacs as against Rs.109.70 lass achieved in the previous financial year 1999-2000. DIVIDEND In view of the reduced profitability and with a view to conserve the resources of the company, your Directors do not recommend payment of any dividend on equity shares for the financial year 2000-2001. BUSINESS PROSPECTS As mentioned earlier, the Company has been successfully operating the EOU which has a good profit potential. The domestic market has become extremely competitive following ever changing tastes and preferences of the consumer which have had its impact on the profit margins. Your company in the long run focuses to enhance its export operations, which market seems to be extremely lucrative both on the price as well as the volume front. Your company does look forward to achieving much better performance on the back of enhanced exports in coming years. DIRECTORS In accordance with the requirements of the Companies Act, 1956 and Articles of Association of the Company, Mr. S. N. Patadia, Mr. J. T. Ranpara and Mrs. G. B. Mehta retires by rotation and being eligible offer themselves for reappointment. Mr. Azhar Patrawala has since resigned from the Directorship of the Company. Your Directors place on record its appreciation of the valuable services rendered by Mr. Azhar Patrawala during his tenure as Director on the Companys Board. DIRECTORS RESPONSIBILITY STATEMENT Pursuant to section 217 (2AA) of the Companies (Amendment ) Act, 2000 the Directors confirm: i) That in the preparation of the Annual Accounts, applicable accounting standards have been followed alongwith proper explanation relating to material departures; ii) That the Directors have selected such accounting policies and applied them consistently and made judgement and estimates that are reasonable and appropriate so as to give true and fair view of the statement of affairs of the company at the end of the financial year 31st March, 2001 and the profit of the company for that period: iii) That the Directors have taken proper and sufficient care for the maintenance of the adequate accounting records in accordance with the provisions of the companies Act, 1956 for safeguarding the assets of the company and for preventing and detecting frauds and other irregularities. iv) That the Directors have prepared the Annual Accounts on a going concern basis. AUDITORS At the Annual General Meeting, Members are requested to appoint Statutory Auditors for the current year. FIXED DEPOSITS / CLAIMS ETC. The Company has not accepted any fixed deposits. PARTICULARS REGARDING CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO Information regarding conservation of energy etc. as per Sec. 217 (1) (e) of the Companies Act, 1956 read with Companies (Disclosure of Particulars in the Report of Ward of Directors) Rules 1988, is given below a. Conservation of Energy The particulars regarding conservation of energy are not applicable to the Company as the Imitation Jewellery Industry is not covered under the schedule prescribed by the said Rules. b. Technology Absorption The manufacturing process for imitation Jewellery involves making of dies for different designs which are manufactured using in-house technology developed by the Company. c. Foreign Exchange Earnings and Outgo Details regarding foreign exchange earnings and outgo are given in note 12 of Schedule "P" of the Accounts. PARTICULARS OF EMPLOYEES There are no employees in respect of whom a statement of particulars u/s 217 (2A) of the Companies Act 1956 read with the Companies (Particulars of Employees) Rules is required to be given. ACKNOWLEDGMENT Your Directors would like place on record their appreciation to all the staff members for their excellent contribution to the creditable performance of the Company and to the Bankers, Shareholders and Customers for their sustained support. For and an behalf of the Board of Directors Place: Mumbai N.C. Soni Date : 31st August, 2001 Chairman & Managing Director