marutitelstar industries ltd Directors report

MARUTI TELSTAR INDUSTRIES LIMITED ANNUAL REPORT 1999-2000 DIRECTORS REPORT TO THE MEMBERS Your directors have pleasure in presenting the Twelfth Annual Report along with the Audited Accounts of the Company for the period ended 31st March, 2000. OPERATIONS During the current period your Company could not recommence plant operations in view of continuing working capital constraint and resultant loss of market due to suspension of activities in the later part of last accounting year. Effort in the direction of development of certain software packages has yet to yield desired results. As the viability of current operations is not encouraging due to heavy debt burden, the Company has proposed to restructure its financial and its request is pending with the Bankers of the Company. The cash losses during the period have arisen primarily due to interest charges and fixed overheads. DIVIDENDS The Board is unable to recommend a dividend due to loss. FUTURE OUTLOOK Availability of glass shells ar reasonable rates continues to be a constraint, despite this there is practically no improvement in sales and prices. The Cathode Ray Tubes for Monitors also could not be commercially produced and marketed during the year due to constraints of import of its raw materials at viable rates and change in consumer preference towards colour monitors. In its efforts to resolve the present situation the Company has been exploring other options and one among them has been registering of a domain name for developing a portal for entrepreneurs. DIRECTORS During the period Shri Vijay Vaidya who was co-opted as a director on the Board as a professional director resigned. The Board places on record its appreciation for the services rendered by him during his tenure as a director, Shri K.C. Suthar, a Company Secretary has been appointed as an alternate director to Shri Ram Chattani, a non-resident director on the Board of the Company. Shri C.S. Kapoor retires by rotation and offers himself for re-appointment. PARTICULARS OF EMPLOYEES There is no employee drawing annual salary of Rs.6 lacs or more if employed for whole year or Rs.50,000/- or more per month, if employed for part of the year. AUDITORS M/s Parikh & Associates, Chartered Accountants hold office until the conclusion of the ensuing Annual General Meeting and being eligible offer themselves for re-appointment. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS & OUTGO The particulars as prescribed under sun-section (1) of Section 217 of the Companies Act, 1956 read with Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988 are set out in the Annexure included in this report ACKNOWLEDGEMENTS Your Directors express their appreciation for the valuable assistance provided by the State Government and other authorities, and Central Bank of India. Your Directors also place on record their appreciation for the support extended by the shareholders FOR & ON BEHALF OF THE BOARD OF DIRECTORS Place: Mumbai C.S. Kapoor Date : 21 June, 2000 Executive Vice Chairman DISCLOSURE OF PARTICULARS IN THE REPORT OF THE BOARD OF DIRECTORS, RULES, 1988 I. CONSERVATION OF ENERGY Energy Conservation had been an ongoing activity in the Company and where ever possible energy conservation measures have been implemented. During the interim period of suspension of plant activities no further step could be taken in that direction. The efforts to conserve and optimise the use of energy through improved methods will continue. II. TECHNOLOGY ABSORPTION: Research & Development (R & D) 1. Specific areas in which R & D was carried out by the Company: Process improvement for reducing consumption of glass shell. 2. Benefits that was derived as a result of the above R & D Improvement in product quality, cost effectiveness. 3. Future plan of action: To focus on cost reduction and process simplification and development of the products upon recommencing operations. TECHNICAL ABSORPTION, ADAPTATION AND INNOVATION The Company has successfully absorbed and adapted the picture tube manufacturing technology. III. Information As Per Section 217 (2A) (B) (II) Read with Companies (Particulars of Employees) Rules, 1975 and forming part of the Directors Report for he year ended 31st March, 2000 None of the employees of the Company under the above category. FOR & ON BEHALF OF THE BOARD OF DIRECTORS Place: Mumbai C.S. Kapoor Date : 21 June, 2000 Executive Vice Chairman