rana mohendra papers ltd Directors report

RANA MOHENDRA PAPERS LIMITED ANNUAL REPORT 1998-99 DIRECTORS REPORT Dear Shareholders Your directors have pleasure in presenting their report and audited accounts of the Company for the year ended 31 st March, 1999. REVIEW OF OPERATIONS During the year 1998-99 the total turnover of the Company decreased to Rs.1278.81 lacs from Rs.1835.75 lacs last year. As reported last year the recessionary trend in paper industry continued during the period under review. The company is also facing some restrictions on production from Punjab Pollution Control Board, the Sincere efforts, however are being made to comply with requirements as imposed by the PPCB. Since April/May, 99 there are some signs of improvement. in the market for the paper and if the trend sustains the company hopes to report better results during the current year. DIVIDEND The Directors regret their inability to declare a Dividend for the year under review. FIXED DEPOSITS The Company has not accepted any Fixed Deposits from the Public within the meaning of Section 58-A of the Companies Act, 1956 and the rules made their under the period under review. DIRECTORS Sh. G.S. Pandey and Sh. H.C. Jain, Directors retires by rotation and being eligible offers themselves for re-appointment. ENERGY, Technology & FOREIGN EXCHANGE Information required under Section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosure of Particulars in Report of the Board of Directors) Rules 1988, regarding conservation of energy, technology absorption and foreign exchange earning and outgo is annexed and forms part of the report. Y2K COMPLIANCE STATUS The Company has taken adequate steps to ensure that all computerized systems are Y2K compliant. The company has formulated a contingency plan to take care of any eventualities in this connection. The expenditure to ensure Y2K compliance is not expected to have any material financial impact. The shares of the company are listed on Mumbai, Ahmedabad, Delhi, Jaipur and Ludhiana Stock Exchanges. AUDITORS M/s Kansal Singla & Associates, Chartered Accountants retire at the ensuing Annual General Meeting but being eligible offer themselves for re- appointment. PARTICULARS OF EMPLOYEES None of the employees was in receipt of the remuneration over and above the limit prescribed under Section 217 (2A) of the Companies Act, 1956 read with the Companies (particulars of employees) Rules 1975. ACKNOWLEDGEMENT The Board of Directors wish to express their sincere thanks to IFCI, PSIDC, PSCB and State Bank of India for their continued support and co-operation . The Board also record their appreciation for the dedicated service rendered by all ranks of the company personnel. For and on behalf of the Board Rana Hardeep Singh Chairman cum Managing Director Place: Chandigarh Dated: 28th August 1999 ANNEXURE TO DIRECTORS REPORT Disclosure of particulars with respect to conservation of Energy, Technology Absorption, Foreign Exchange earnings and Outgo as required under Companies (Disclosure of Particulars in the Report of Board of Directors) Rule, 1988 and forming part of Directors Report for the year ended 31st March,1999. A) Energy consumption and conservation Various steps have been taken for the conservation of energy specially in the area of optimizing usage of power and fuel. Efforts are on to eliminate leakage, ensuring effective heat transfer as well as heating utilisation. B) Disclosure of particulars with respect of Technology Absorption, Adaption and Innovation. Our manufacturing process is based on Indigenous Technology and does not involve any imported Technology. Presently, the Company is not undertaking any significant Research and Development work, The Company has fully absorbed Indian Technology and the Company is in constant touch with the experts both Indian and Abroad for upgrading the Technology. Continuous efforts are on the upgrade our product and to develop further in house expertise. C) Foreign exchange earnings and outgo . 1998-99 1997-98 (Rs. in lacs) Earnings in Foreign Exchange NIL NIL Outgo 4,35 6.02