Lunar Diamonds Ltd Directors Report.

1997 LUNAR DIAMONDS LIMITED DIRECTORS REPORT The Directors are pleased to present the performance of your Company during the financial period 1995-96 in this 7th Annual Report alongwith the Audited accounts for this financial period. OPERATIONS The accounting year of the company is changed from a period commencing from 1st April and ending on 31st March every year to a period of 12 months commencing from 1st October and ending on 30th September every year. The company obtained permission pursuant to section 166 and section 210 of the Companies Act, 1956 and in consequence of which, this financial year comprises a period of 18 months commencing from 1st April 1995 and ending on 30th September, 1996. In the current year the performance of the Company in the fist half year has been satisfactory. The salient features of the Companys financial results for the year under review are as follows:- (Rs. in lacs) For the For the Period 1.4.95 to 30.09.96 31.03.95 Gross Profit for the year 111.67 773.50 Less: Depreciation 23.56 12.22 Profit before taxation 88.11 761.28 Less: Taxation -- -- Net Profit 88.11 761.28 Profit brought forward 369.62 89.13 Income tax adjustment 8.04 3.09 Amount available for appropriation 465.77 853.50 APPROPRIATIONS General Reserve -- 310.00 Dividend (Subject of tax) -- 173.88 Debentures Redemption Reserve 100.00 -- Balance Carried Forward 365.77 369.62 DIVIDEND Although the company has achieved a turnover of Rs. 12225.70 Lacs during this period, there is delay in realisation of Exports Proceeds. The Company as a prudent measure is not declaring any dividend for this period. EXPORTS Your Companys exports continue to rise. There is a tremendous scope of increase in the export turnover of jewellery items in the international market and your company is actively taking steps to increase its exports towards which the company is receiving a good response. EXPANSION PLANS The company has acquired the requisite land for setting up an Export processing zone near the L.G. International Airport, Delhi (i.e. around 13 khms only). Your approval for the same is being sought. The land being prominently located, can also be put to alternate usage. FIXED DEPOSITS The deposits from the public as on 30th September, 1996 amounted to Rs. 587.74 lacs. There were no overdue or unclaimed deposits. AUDITORS M/s Rajiv Prakash & Co., Chartered Accountants Auditors of the Company retire at the Annual General Meeting and being eligible offer themselves for re-appointment. DIRECTORS Mr. K.K. Agrawal and Mr. D.C. Maloo, Directors of the Company retire by rotation at the Annual General Meeting and being eligible offer themselves for re-appointment. During the period Mr. S.B. Pandey resigned from the Board. The Company appreciates valuable services rendered by him. COMPANY SECRETARY Sh. A.K. Mittal, Company Secretary has resigned during this period. Sh. G.L. Minocha, F.C.A, A.C.S. Joined as Company Secretary of the Company on 1.12.96. STATUTORY DISCLOSURE i) CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO Information pursuant to section 217(1)(c) of the Companies Act, 1956 read withe Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 in respect of these matters is appended as Annexure A and forms part of this report. ii) PARTICULARS OF THE EMPLOYEES There is no employee covered under Section 217 (2A) of the Companies Act, 1956. iii) The information as required in terms of clause 43 of the listing agreement executed with Bombay Stock Exchange is enclosed as Annexure-B. APPRECIATION The Directors place on record their appreciation for the sincere and dedicated services of all the employees and convey their thanks for the co- operation extended by all the members, bankers and all others, who are associated with the Company. ANNEXURE TO THE DIRECTORS REPORT 1. CONSERVATION OF ENERGY The manufacturing process adopted by the Company do not involve use of much energy. The plant and machinery installed by the company are state of the art, computerised based and consume substantially lower energy than the conventional equipment. 2. TECHNOLOGY ABSORPTION a. Research and Development: As a part of the production process, efforts are made for improvisations in the design and style of jewellary based on the feed back from the market. The continuous process of developing new designs & styles help in the growth of turnover of the Company. Two full time designers have been employed by the company apart from the designing support coming from buyers. b. Technology Absorption, adaptations and Innovation: The Company has not imparted any foreign/outside technology. ANNEXURE TO DIRECTORS REPORT INFORMATION UNDER LISTING AGREEMENT WITH STOCK EXCHANGE The funds raised by the company through Right Issue which closed on 6th July, 1993 have been utilised for the purpose they were intended. Statement of projected profitability as per Letter of Offer and actual profitability for the period ended on 30th September, 1996 are as follows: (Rs. in lacs) Projected Actual for the for the year Period of 1.4.95 ended on to 30.9.96. 31.03.96 as per letter of offer. Sales & other Income 2643.75 12225.70 Net profit after tax 629.25 88.11 Reserve 1183.92 1601.40 Equity Capital 966.00 1116.00 Book Value (Rs.) 22.26 24.35 EPS (Rs.) 6.51 0.79 For & on behalf of the Board S.L. MALOO Chairman & Managing Director Place : NOIDA Dated : 28th February, 1997.