mehta rubber chemcials ltd Directors report

1995 MEHTA RUBBER CHEMICALS LIMITED DIRECTORS REPORT Your Directors have pleasure in presenting the Third Annual Report of your Company together with the Audited Balance Sheet and Statement of Accounts as at 31st March 1995. 1) ACCOUNTS As the Company had no manufacturing, trading or service activities during the accounting period ended on 31st March, 1995, no Profit and Loss Account has been prepared for the above period and all expenditure incurred has been carried forward as capital work in progress to be capitalized appropriately at a later date. 2) FINANCE Your Company was incorporated on 17th September, 1992, with the main object of manufacturing and to carry on the business in all types of Rubber Chemicals used in the manufacture of Rubber Goods. The Company has accordingly set up a factory for this purpose at MIDC, Tarapur. The total cost of the project had been appraised by The State Industrial & Investment Corporation of Maharashtra Ltd. at Rs. 4.69 crores, and to finance a part of the project the Company had made a public issue during the year. The Public Issue met with good response. The allotment of shares was made on 20th July 1994 as per the basis of allotment approved by the Bombay Stock Exchange. 3) PROJECT IMPLEMENTATION The plant has been commissioned and the start-up teething problems that normally come with greenfield projects have been overcome and regular production in feasible quantities commenced in June 95. Originally it was proposed to install a plant of 700 TPA capacity, but in view of the very good response from potential customers, the Company has installed a plant of 900 TPA capacity. This capacity expansion has been implemented at an additional cost of Rs. 50 lacs. 3. MARKETING The Company has tied up its market through appointment of experienced distributors in all major territories for the non-tyre sector. The response from the tyre sector also has been most encouraging and the Company is in the process of formalising approval for its products by this sector. There is also a good export potential for some of the products and this avenue for sales is also being explored by the Company. 4. DIRECTORS In accordance with the provisions of the Companies Act, 1956, and the Companys Articles of Association, Dr. Asheesh V. Mehta retires by rotation and, being eligible, offers himself for re-appointment. Mr. Jagdish G. Muley and Mr. Mohan Shenoy, resigned from the Board with effect from 9th March, 1995 and the Company wishes to place on record its appreciation of the services rendered by them during their tenure. Dr. Suresh V. Bhopi, who was appointed Additional Director by the Board, holds office upto the Annual General Meeting. The Company has received Notice proposing his candidature for appointment as a Director at this Annual General Meeting. 5) CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO. Pursuant to Section 217 (1) (e) of the Companies Section 224 (1B) of the Companies Act, 1956. Act, 1956 read with the Company (Disclosure of Particulars in the report of Board of Directors) Rules, 1988 the following information is provided. a) CONSERVATION OF ENERGY The Company has taken effective steps to conserve power and minimise the consumption of fuel. b) TECHNOLOGY ABSORPTION The process of technology absorption has been substantially completed. c) FOREIGN EXCHANGE EARNINGS AND OUTGO 1) Foreign Exchange Earnings - Nil 2) Foreign Exchange Outgo - Nil 6) FIXED DEPOSIT The Company has not accepted any Fixed Deposit from the Public. 7) AUDITORS M/s. Deshmukh & Associates, Chartered Accountants, are deemed to retire as Auditors of the Company at the conclusion of the forthcoming Annual General Meeting and, being eligible, offer themselves for re-appointment. They have forwarded a certificate to the effect that the re-appointment, if made, will be in accordance with Section 224 (1B) of the Companies Act, 1956. 8) AUDITORS REPORT The Notes on the Accounts referred to in the Auditors report are self- explanatory and do not call for any further comments. 9) PARTICULARS OF EMPLOYEES. There were no employees who were in receipt of aggregate remuneration of not less than Rs. 3 lacs per annum, if employed throughout the year, or not less than Rs. 25,000/- per month, if employed for part of the year. 10) ACKNOWLEDGEMENT Your Directors acknowledge and place on record their appreciation of the assistance and co-operation rendered by Bankers, Financial Institutions and the Government. For and on behalf of the Board of Directors MEHTA RUBBER CHEMICALS LTD. NITIN G. MEHTA MANAGING DIRECTOR Place : Bombay Dated : 15th Sept. 1995