new india industries ltd Directors report

THE NEW INDIA INDUSTRIES LIMITED DIRECTORS REPORT The Shareholders, Your Directors present the Fifty-Sixth Annual Report together with the Audited accounts of your Company for the year ended 31st March, 1999. 1. OPERATIONS. 1.1 PHOTO-SENSITISED PRODUCTS The sales volume and turnover of Black & White Paper marginally improved compared to the previous year from Rs. 1364 Lacs to Rs. 1406 Lacs. There was a marginal reduction in exports. However, the margins continued to remain under considerable pressure on account of heightened competition from lower priced Black & White Paper imports as a consequence of reduced import duty on finished goods. 1.2 TEXTILE ACCESSORIES: The year witnessed a continuous down trend in Textile Accessories. The turnover decreased substantially from Rs. 621 Lacs to Rs. 556 Lacs particularly in the second half of the year. The personnel cost as a percentage of turnover is extremely high and a cause of concern. This being caused by surplus labour. 1.3 EXPORTS: The Companys exports of Photopaper, during the year under review, amounted to Rs. 388 lacs against Rs.458 lacs in the previous years, largely aided by the London Office. The Company hopes to increase exports during the current year. 1.4 PROPERTY DEVELOPMENT: The Company successfully completed its first residential project "RIVIRESA" at Pune and in accordance with the accounting policy the profit in respect of units sold has been recognised and accounted for in the current year. This project has substantially contributed to the profitability of the Company. 2. FOREIGN EXCHANGE EARNINGS AND OUTGO . The details are as per Note No. 12 to the Balance Sheet and Profit and Loss Account 3. RESEARCH & DEVELOPMENT The Company successfully completed the development work in the area of Inkjet Papers. 4. ENERGY CONSERVATION . The Company has taken effective steps to effect substantial savings in consumption of energy and will continue to monitor the same. The Company expects the benefits of these steps to be reflected in the year 1999-2000. 5. PUBLIC DEPOSITS: Out of the total deposits accepted by the Company 18 deposits amounting to Rs.1.04 lakhs had natured but remained unclaimed out of which 5 deposits amounting to Rs. 0.36 lakhs has since been claimed/renewed. 6. DIRECTORS: Mrs. S. M. Ruia and Mr. N. Bhogilal retire by rotation and are not seeking re-appointment. 7. AUDITORS REPORT . The Directors wish to state that the information given in Note No. 1 K of Schedule 21 to the accounts referred to in the Auditors Report is self- explanatory and therefore does not require any explanation under Section 217(3) of the Companies Act, 1956. 8. AUDITORS: The term of the Auditors M/s, N. M. Raiji & Co., Chartered Accountants, Mumbai, expires at the forthcoming Annual General Meeting. They are eligible for re-appointment. You are requested to appoint Auditors for the current year and fix their remuneration. 9. STATUS OF YEAR 2000 (Y2K): The Company is in the process of achieving Year 2000 compliance in all hardware and software systems, developed in-house and does not envisage any serious problem to the Companys business activities from the Y2K issue. The Company has taken effective steps and expects to be Y2K compliant by 30th September, 1999. The expenditure to ensure Y2K compliant is insignificant. 10. GENERAL: In compliance with the provisions of Section 217(1)(e) & 217(2A) of the Companies Act, 1956, statements giving the required information are annexed hereto, forming part of the report. Relations between the employees and the management continued to be cordial. By and on behalf of the Board Place : Mumbai, S. Jambunathan Dated : 25th August, 1999. Managing Director ANNEXURE TO THE REPORT OF THE BOARD OF DIRECTORS DISCLOSURE OF PARTICULARS WITH RESPECT TO TECHNOLOGY ABSORPTION RESEARCH AND DEVELOPMENT 1. Specific areas in which R & D is carried out by the Company: R & D is carried out mainly in the following areas - New Product and Process development - Import substitution - Technology upgradation - Development and evaluation of alternate raw materials and intermediates. 2. Benefits derived as a result of the above R & D The Company has successfully manufactured Photo-typesetting Paper of various types, Oscilloscope Recording Paper, PE Based Bromide Paper, Variable Contrast Paper and Lith Paper, which have been well accepted by the market. The Company has also developed local suppliers for a number of critical raw materials which were earlier imported. Furthermore, the Coating technology at the Companys Photopaper Plant is upgraded with indigeneiously developed know-how. 3. Future Plan of Action The Company continues to develop new products in the Black & White Coated Products range as per market needs. 4. Expenditure on R & D 1998-99 (Rs. in Lacs) (a) Capital -- (b) Recurring 0.92 (c) Total 0.92 (d) Total R & D expenditure as a 0.02% percentage of total turnover TEChNOLOGY ABSORPTION, ADAPTATION AND INNOVATION 1. Efforts, in brief, made towards technology absorption, adaptation and innovation The Research and Development Department keeps itself abreast of the technical developments and innovations relating to the Companys line of Photo-sensitised products and brings about improvements in the products of the Company for better quality, cost effectiveness and utilisation of non- traditional ingredients. 2. Benefits derived as a result of the above efforts As per paragraph 2 above. 3. Imported technology (a) Technology imported Technical Assistance Agreement for upgrading of technology for manufacture of All Metal (Profile) Reeds for Airjet Looms. (b) Year of Import 1993 to 1998 (c) Has the technology been fully absorbed? N.A. (d) If not fully absorbed N.A. By and on behalf of the Board Place : Mumbai, S. Jambunathan Dated : 25th August, 1999. Managing Director