Sumex Chemicals Ltd Directors Report.

SUMEX CHEMICALS LIMITED ANNUAL REPORT 1999-2000 DIRECTORS REPORT The Members of SUMEX CHEMICALS LIMITED The Directors hereby present their Fourteenth Annual Report together with the audited statements of account for the year ended 31st March 2000. 1) DIVIDEND: In view of loss, Directors do not recommend any dividend for distribution to share-holders. 2) OPERATIONS: The award of BIFR is still awaited and the Sick status of the company continues. The Marketing arrangements with Zagro Industries (India) Private Ltd. (ZAGRO) stopped during the year. Hoping for an early resolution of BIFR reference and revival of the company, the promoters continued operations to a limited extent by injecting own funds. However, the non acceptance of rehabilitation scheme by bankers and financial institutions and inability of operating agency to change management have made chances of revival bleak. The year under review also resulted in a huge loss of Rs. 406.36 Lacs (Rs. 419.89) on Sales of Rs. 181.61 Lacs (Rs. 371.46) The losses are due mainly to interest, depreciation and bad doubtful debts. 3) CURRENT YEAR: The operations of the company have stopped completely in the current year. The company has dispensed with all employees and minimised the expenses. 4) DIRECTORS: Pursuant to the provisions of the Companies Act 1956 and Articles of Association of the Company Mr. Dinesh Chaturvedi shall be the Director liable to retire by rotation at the ensuing Annual General Meeting and being eligible has offered himself for re-appointment. During the year Mr. D. N. Chaturvedi, Chairman & Managing Director of the Company resigned with effect from 01st February 2000 due to ill health. The Board decided not to fill the casual vacancy caused by his resignation; Dr. S. Chaturvedi resigned with effect from 15th May 2000. Mr. K. B. Jangir was appointed on the Board as additional director to hold office till conclusion of next Annual General Meeting of the Company. 5) AUDITORS REPORT: Directors refer to the observations made in the auditors report and the same is explained in the notes to Accounts. 6) EMPLOYEES: The company maintained good relations with the employees in general. 7) CONSERVATION OF ENERGY / TECHNOLOGY ABSORPTION / RESEARCH DEVELOPMENT, FOREIGN EXCHANGE EARNINGS & OUTGO ETC. Particulars as required under the Companies (Disclosure of particulars in the Report of the Board of Directors) Rules, 1988 are annexed in Form A&B. 8) AUDITORS: The present statutory auditors M/s. Anand Jain & Associates, Chartered Accountants retire at the conclusion of the ensuing Annual General Meeting and are eligible for re-appointment. Members are requested to appoint Auditors. 9) Listing of Shares: The shares of the company are listed on Mumbai & Ahmedabad Stock Exchanges. For and on behalf of the Board of Directors Mumbai-400 053. Dated: 30th June 2000 Dinesh Chaturvedi