rusoday company ltd Directors report

1996 RUSODAY & COMPANY LIMITED DIRECTORS REPORT Your Directors have pleasure in presenting the Eleventh Annual Report together with the Audited Accounts for the year ended, 30th September, 1996. OPERATIONS The Company has earned an income of Rs. 145.41 lacs as compared to Rs. 286.37 lacs in the previous year. The discontinuance of Diamond business and dull atmosphere prevalent in the Capital Market has attributed equally to the very low level of income during the year 1995-96, resulting in a net loss of Rs. 162,18 lacs in the current year. MERCHANT BANKING Though your Company has secured a place in the Merchant Banking area the Company could not manage many Public Issues as anticipated due to sluggishness in the Capital Market as well as in the Economy. However, during the year, the company has handled 19 Public Issues as Lead Managers, 7 Issues as Co-Managers and has underwritten 6 Issues as the tune of Rs.120 lacs. The Company expects good response in the current financial year in this line of activity. DIVIDEND Due to the very low level of income and losses incurred during the current year under review, the Board of Directors have not recommended any Dividend for the financial year 1995-96. Your Directors wish to inform that the company has made an application to the Magadh Stock Exchange to delist the shares of the Company on account of the negligible trading carried on the floor of the Exchange. SUBSIDIARY COMPANY In compliance with the Provisions of Section 212 of the Companies Act 1956, the audited statement of Accounts together with Directors Report of the subsidiary company for the year ended 31st March 1996 are annexed. PARTICULARS OF EMPLOYEES There are no employees in the Company whose particulars are required to be given pursuant to Section 217 (2A) of the Companies Act, 1956, read with Companys (particulars of employees) Rules 1975. FIXED DEPOSITS The Company has not accepted and deposits from the public within the meaning of Section 58 A of the Companies Act, 1956. DIRECTORS Shri V. V. Sastri, Director of the Company will retire by rotation and is eligible for re appointment. Shri J. S. Varshneya, Director of the Company resigned from the Board and his resignation was accepted with effect from 21.08.1996. The Board places on record their deep appreciation for the services rendered by Shri. J. S. Varshneya, as a Director of the Company. AUDITORS M/s. Kanoongo & Associates, Chartered Accountants. Auditors of the Company retire and being eligible, offers themselves for re appointment. ENERGY, TECHNOLOGY AND FOREIGN EXCHANGE Information on Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo required to be given pursuant to Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 are not applicable since there is no such activity at present being pursued by the Company. ACKNOWLEDGEMENT Your Directors wish to place on record their appreciation and grateful thanks to Banks, other State and Central Government agencies and the Shareholders for their continued support. Your Directors also wish to place on record their sincere appreciation for the valuable services rendered by all the employees during the year. For and on behalf of the Board S. K. JAIN Managing Director Place : Hyderabad, Date : 4th December, 1996.