mohatta heckel ltd Directors report

MOHATTA AND HECKEL LIMITED ANNUAL REPORT 2001-2002 DIRECTORS REPORT TO THE SHAREHOLDERS Your Directors present the 40th Annual Report along with Audited Statement of Accounts your Company for the year ended 31st March,2002. FINANCIAL RESULTS (Rs. In Lacs) Current Year Previous Year Ended on Ended on 31.03.2002 31.03.2001 TOTAL INCOME 1042.41 765.36 PROFIT BEFORE DEPRECIATION, TAXATION AND EXTRA-ORDINARY ITEMS 18.50 (9.64) Less: DEPRECIATION 25.37 50.62 PROFIT BEFORE TAXATION AND EXTRA- ORDINARY ITEM (6.87) (60.26) Less: EXTRA-ORDINARY ITEM EMPLOYEES SEPARATION COMPENSATION 16.53 18.61 PROFIT (LOSS) BEFORE TAXATION (23.40) (78.87) Less: PROVISION FOR TAXATION PROFIT AFTER TAX (23.40) (78.87) Add: BALANCE BROUGHT FROM THE PREVIOUS YEAR (695-02) (616.15) BALANCE CARRIED TO BALANCE SHEET (718.42) (695.02) PERFORMANCE The financial result as depicted above is for a period of 8 months as the company had resumed its production activity only from August 2001 after a suspension of operation nearly for a period of 12 months. The performance of the company is adversely affected due to non-availability of working capital. Old customers stood by the company in the adverse situation of the company and they have reposed their confidence in the company by giving fresh orders. The Company has paid total Employees Separation Compensation of Rs. 84.73 lacs in last two years which has been contributed by the promoters. As a result of that the wage bill of the company has been reduced drastically which will show its positive effect on the profitability of the company the years to come. EXPORTS The F.O.B. Value of exports for the current year is Rs.240.54 Lacs as compared to last year which was Rs.263.05 Lacs. As the company has received ISO 9001 -accreditation the products of the company are well accepted in the international market. DIVIDEND In view of the losses incurred, your Directors do not recommend any dividend for the year ended 31st March, 2002. PUBLIC DEPOSITS During the year the company has not accepted any deposits within the meaning of Section 58 -A of the Companies Act 1956 said the rules made there under. BIFR The Board of Industrial and Financial Reconstruction have declared the company as a sick unit in terms of Section 3(1)(o) of the said Act. The State Bank of India (SBI) has been appointed as the Operating Agency (OA) under Section 17(3) of the Act, to examine the viability of the Company and formulate a rehabilitation scheme of revival. SBI being the Operating Agency appointed by BIFR submitted their report finding the Company to be viable subject to certain conditions. The matter is pending before the BIFR. PERSONNEL Since there are no employees drawing the salaries as specified in Section 217(2A) of the Companies Act 1956 read with the Companies (Particulars of Employees) Rules, 1975. The said rules are not applicable. RESPONSIBILITY STATEMENT Pursuant to Section 217(2AA) of the Companies Act 1956 the Directors confirm: a) that the applicable accounting standards have been followed along with proper explanation whichever required in the preparation on annual accounts. b) that the Company has adopted prudent accounting policies c) that proper care has been taken for maintenance of accounting records in accordance with the provisions of the Act, and d) that the annual accounts of the company have been prepared on a going concern basis. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING AND OUTGO: 1. Conservation of Energy: Form A is not applicable, as the company does not fall in the list of industries mentioned in this schedule. 2. Technology Absorption: The company has not entered into any technology tie up with overseas parties and as such no technology absorption and innovation could be done. The research and development activities could not be continued due to financial constraints. 3. Foreign Exchange Earning and outgo: (Rs. In Lacs) Current Year Previous Year 2001-2002 2000-2001 F.O.B. Value of Exports 240.54 263.05 C.I.F. Value of Imports (a) Raw Materials 417.38 27.99 (b) Capital Goods NIL NIL Expenditure in foreign currency NIL NIL DIRECTORS Shri Anand kumar Mohatta retires by rotation and being eligible offers himself for reappointment. Shri Kotnish C. Todarwal has resigned as director of the company since 12th December 2001. AUDITORS AND AUDITORS REPORT Auditor M/s M. V. Krishna Moorthy Chartered Accountants retire and offer themselves for reappointment. Audit Report The auditors report on the accounts of the company is self-explanatory except the following NOTES made by them 1. NOTE NO.1(V) OF SCHEDULE M: In respect of gratuity liability. The company has decided to account the Gratuity liability on payment basis as the amount of the same is yet to be ascertained. 2. NOTE NO.9 OF SCHEDULE M: In respect of non provision of interest on CC A/c., SBI Mutual Fund (Debentures) & other deposit (amount not ascertained). Since the amount of interest exactly payable by the company is not ascertained, same have not been provided. NOTE NO.10 OF SCHEDULE M:In respect of non provision of power and fuel expenses The amount payable to M.S.E.B. includes penal charges and interest payable to M.S.E.B. for delayed payments of various power bills. The company has made application to M.S.E.B. for relief/waiver of the same on the basis of reference application made to BIFR. CORPORATE GOVERNANCE: Your company and its Board have been complying with to the extent setout in this respect as a separate report, in pursuance of requirements of clause 49 of the Listing Agreement. Auditors certificate regarding compliance of the conditions of Corporate Governance as stipulated under the said clause is also attached to the report. ACKNOWLEDGMENTS: Your Directors would like to express their grateful appreciation for the assistance and cooperation received from the Financial Institutions, Bankers, Staff and Workers. For and on behalf of the Board of Directors Anand Kumar Mohatta Chairman Place: Mumbai Date : 18.07.2002