montari leather ltd Directors report

ANNUAL REPORT 1999-2000 MONTARI LEATHER LIMITED DIRECTORS REPORT Your Directors have pleasure in presenting the 7th Annual Report and Audited Accounts for the year ended 31st March, 2000. CORPORATE RESULTS During the year the Company has registered a loss of Rs.1317.72 lacs, including finance charges of Rs. 903.05 lacs and depreciation of Rs. 140.59 lacs. After considering accumulated loss of Rs. 5167.42 lacs, total loss comes to Rs. 6485.14 lacs. OPERATIONS/BIFR STATUS IDBI the operating agency has submitted a draft rehabilitation scheme to BIFR and the approval for the same is awaited. The scheme envisages the induction of Rs. 21.5 crores in order to repay the long term debt within the needs of the company. Reliefs are also proposed from IDBI and debentureholders. Once the scheme is approved th Company will start functioning smoothly. DIRECTORS Mr. P.V. Rao, Nominee Director IDBI has been withdrawn from the Board by IDBI, Debenture Trustee, Vide IDBI letter dated 5th June, 2000. Your directors extend their sincere appreciation to Mr. P.V. Rao for the valuable guidance extended to the Board during his tennure. Dr. Bhai Mohan Singh, and Bhai Manjit Singh Directors retire by rotation and are eligible for re-appointment. AUDITORS M/s. Walker, Chandiok & Co., Charted Accountants, the Auditors of the Company, hold the office until the conclusion of the ensuing Annual General Meeting. The Company has received a- certificate from them to the effect that their appointment, if made, by the company for the year 2000- 2001 will be within the limits prescribed under section 224(1 B) of the Companies Act,1956. The Board of Directors recommends their re-appointment. Notes to accounts referred to in the Auditors Report are self explanatory and, therefore, do not call any further comments. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO As required by the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 the relevant data pertaining to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo is Annexed to and forms an integral part of the report. PARTICULARS OF EMPLOYEES The company has not paid any remuneration attracting the provisions of Companies (Particulars of Employees) Rules, 1975 read with Section 217 (2A) of the Companies Act, 1956. Hence, no information is required to be appended to this report in this regard. ADDITIONAL INFORMATION - BALANCE SHEET ABSTRACT AND COMPANYS GENERAL BUSINESS PROFILE Information pursuant to Department of Company Affairs Notification dated 15th May,1995, relating to the Balance Sheet Abstract and Companys General Business Profile is given in the Annual Report for your information. ACKNOWLEDGEMENTS The Company continues to receive the necessary support and co-operation from IDBI and the Consortium of Bankers led by State Bank of Travancore. Your Directors place on record their thankfulness and sincere appreciation for the same. Your Directors would also like to place on record their sincere appreciation for the whole hearted support and continued co-operation received from Domestic and Foreign associates, Suppliers, Distributors and various Government agencies and other concerned agencies during the year under review. I also wish to place on record my sincere thanks and appreciation for the wise counsel, guidance and co-operation extended by the colleagues on the Board. l am thankful to all officers and staff at all levels for their hard work and dedication. For and on behalf of the Board New Delhi Dr. Bhai Mohan Singh 1st December, 2000 Chairman MONTARI LEATHER LIMITED ANNEXURE TO THE DIRECTORS REPORT DISCLOSURES UNDER SECTION 217(1) (e) OF THE COMPANIES ACT, 1956 READ WITH COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988. I. CONSERVATION OF ENERGY (A) Energy conservation measures taken: (i) Need based lighting requirements of the plant was reassessed and lights, fans and airconditioners were disconnected, wherever found unnecessary. (ii) Enough loading of work on all machinery stations was ensured to optimise the utilisation of energy generated by boiler. This was achieved by introduction of innovative production planning systems. (B) Additional Investments & Proposals, if any, being implemented for reduction of consumption of energy: (i) Continuous training of workers in material handling areas and equipments at the tannery and training of workers on handling the closing and lasting conveyors at the shoe plant has resulted in smooth and better flow of operations, thereby causing reduction in consumption of energy. (C) Impact of the measures at (A) and (B) above for reduction of Energy Consumption and Consequent impact on the cost of production of goods. The above measures will help in reducing power & fuel consumption and consequently lower cost of production of goods. (D) Total energy consumption and energy consumption per unit of production as per Form A of Annexure in respect of Industries sPecified in the Schedule thereto. Not applicable. II. TECHNOLOGY ABSORPTION Research and Development: NIL , III. FOREIGN EXCHANGE EARNING AND OUTGO (Rs. in Lacs) Foreign exchange used and earned: Foreign exchange: used 63.25 : earned 404.56