shakti rods and wires ltd Directors report

ANNUAL REPORT 1997-98 SHAKTI RODS & WIRES LIMITED DIRECTORS REPORT To. The Members, Your Directors present the 7th Annual Report with the Audited Accounts for the 18 months period ended on 31st December,1998. OPERATION It was a most difficult year for the company. The company made constant loss on account of constant fall in non-ferrous market. Your Directors made serious efforts to keep production going on and continued business, but against the adverse market conditions and heavy rise in manufacturing and operating cost your directors have decided to stop the production which resulted in a loss of Rs. 748.41 lacs, and this loss have exceeded the entire net worth of the Company, the Board of Directors is required to make reference to the Board for industrial and financial Reconstruction (BIFR) under Section 15 (1) of the Sick Industrial Companies (special Provision) Act, 1985 for determination of the measures which shall be adopted with respect to the company. Reference to the BIFR shall be made very shortly. FIXED DEPOSIT The Company has not accepted any fixed de- posits during the year from public. DIRECTORS Mr. J. T. Jeswani retires by rotation and being eligible offers himself for reappointment. EMPLOYEES There were no employees in respect of remuneration of Rs. 50,000/- per month or Rs. 6,00,000/- per annum during the year under review. AUDITORS The Auditors M/s. S. Chandulal & Co., Chartered Accountants, hold office until the conclusion of the ensuing Annual General Meeting. You are requested to appoint Auditors to hold office until the conclusion of the next Annual General Meeting and to fix their remuneration. ENERGY CONSERVATION Efforts are continuosly being made to improve upon the energy conservation measures allready initiated by the company in their wire divisions earlier. The company has installed energy efficient melting furnace with the modern control device as now in their casting division . FOREIGN EXCHANGE Outflow: C.I.F. value of Import Rs.262.62 Lacs. Inflow : NIL ACKNOWLEDGE The Directors wish to express their appreciation to employees at all levels for their continued hard work and support. For and on behalf of the Board SHAKTI RODS AND WIRES LIMITED Place: Mumbai N. A. Mehta Date : 3rd March,2000 Chairman