oasis textiles ltd Directors report

UNIPON (INDIA) LIMITED DIRECTORS REPORT To, The Members of UNIPON (INDIA) LIMITED Your Directors are presenting the 24th Annual Report together with the Audited Statement of Accounts for the year ended on 31st March, 1998. DIVIDEND In view of losses suffered by the Company, Directors regret to recommend Dividend. OPERATIONS During the year under review, the Company has incurred a loss of Rs. 1519.25 lacs. The main reasons of these huge losses were: 1. Hike in the prices in the petroleum products like diesel. 2. Stiff competition leading to reduction in Product Value. 3. Another important factor responsible for these losses was inadequate working capital. 4. More interest charged by Financial Institutions and Banks on Term Loan and working capital facility granted to the Company. DIRECTORATE Shri. Bipin T. Shah resigned as a Director during the year. The Board of Directors are thankful for the unstinted support and co-operation received by the Company from him. Shri. J.P. Shah resigned as a Director during the year. The Board of Directors are thankful for the unstinted support and co-operation received by the Company from him. In accordance with the provisions of the Companies Act, 1956 and the Companys Articles of Association, Shri Amar H. Patel retires by rotation and being eligible offers himself for reappointment. Sarvashri Harshad N. Patel, Amar H. Patel and Dhruv H. Patel, are reappointed as Chairman & Managing Director, Managing Director and Executive Director respectively, subject to approval of shareholders/IFCI at the AGM. ENVIRONMENT AND ENERGY CONSERVATION Your Company attaches a great deal of importance to energy conservation. The Company reviews on an ongoing basis the energy consumption to optimise the best use of the same. The Company also constantly endeavors to lowering its per kg consumption of energy by adopting innovative techniques. REFERENCE TO BOARD FOR INDUSTRIAL & FINANCIAL RECONSTRUCTION (BIFR) In view of Total Erosion of Net Worth of the Company, your Directors have formed an opinion in the Board Meeting dated 15.04.1998 that Company has become sick u/s 3(1)(O) of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) and Company has to make a reference to BIFR u/s 15(1) of the said Act. FIXED DEPOSITS During the year the Company has not accepted any Fixed Deposits to which the provisions of Section 58A of the Companies Act, 1956 are applicable. PERSONNEL As no employees salary/remuneration were of an amount equal to or more than limits specified u/s 217(2A) of the Companies Act, 1956 details of information u/s 217(2A) of the Companies Act, 1956 has not been provided herewith. INDUSTRIAL RELATIONS During the period under review the industrial relation remained cordial and peaceful. The Directors wish to place on record their appreciation for the devoted services rendered by all categories of staff to the Company. APPOINTMENT OF AUDITORS M/s. C.C. Chokshi & Company, Chartered Accountants hold office as Auditors of the Company until the conclusion of the AGM and being eligible are recommended for reappointment. ACKNOWLEDGMENT Your Directors take this opportunity to acknowledge the trust reposed in your Company by its shareholders, bankers and clients. Your Directors also keenly appreciate the dedication & commitment of all our employees, without which the continuing progress of the Company would not have been possible. On Behalf of the Board of Directors For UNIPON (INDIA) LIMITED Dated: 15th April, 1998 HARSHAD N. PATEL Place: Silvassa CHAIRMAN