The Directors have pleasure in presenting the 31st Annual Report
together with the audited accounts of the Company for the
financial year ended 31st March, 1997.
(Rs. in lacs)
Year ended Year ended
Profit (before Financial Charges
& Depreciation) 384.94 275.60
Less Financial Charges 175.66 91.26
Less Depreciation 99.05 45.15
PROFIT BEFORE TAXATION &
EXTRAORDINARY ITEM 110.23 139.19
Less Provision for taxation 14.25
PROFIT AFTER TAX 95.98 139.19
Less Extraordinary Item - 176.50
Profit (Loss) for the year 95.98 (37.31)
Add Prior Period Adjustments 5.10 10.81
Add Balance as per last
Balance Sheet 131.17 157.67
PROFIT AVAILABLE FOR APPROPRIATIONS 232.25 131.17
RESERVES 1214.98 1127.17
The commercial production of Laminated Safety Windshieled Glasses was
commenced in March 1996 and has been well accepted by the market
including Original Equipment Manufacturers (QEMs).
The Company has been able to achieve turnover of Rs.1023.48 Lacs by
supplies to OEMs during the year under review. Encouraging response has
been received from OEMs for company's Products and regular orders are
being received from OEMs like Bajaj Auto, Bajaj Tempo, Hindustan Motors,
Ashok Leyland, Eicher, Swara Mazda, Premier Automobiles and PAL Peugeot
etc. Total Turnover of the Company was Rs.3217 Lacs; a growth of 59% as
compared to previous year Turnover of Rs.2019 Lacs. The Cash profit of
the Company also improved by 14% to Rs.209.28 Lacs, as compared to
Rs.184.34 Lacs of previous year.
Growth in automobile Industry has shown some signs of slowing down
during the previous 4 months but with the launching of new models by
existing automobile manufacturers and selling up of manufacturing
facilities by Multinational Corporations, the growth in the Industry
has been revived. The Directors hope to maintain the growth in
turnover at the same rates achieved in the year 1996-97. The Production
of vehicles is estimated to touch 10,00,000 Nos. by the end of year
The Directors express their inability to recommend any dividend for
the year and the profits of the Company are recommended to be ploughed
back for future.
The Company has not accepted any fixed deposits within the meaning of
Section 58A of the Companies Act, 1956 and the Rules made thereunder.
Mr.Jacques Aschenbroich, Mr. Anand Mahajan & Mr. M.S. Gujral, Directors
retire by rotation at the conclusion of this Annual General Meeting and
being eligible, offer themselves for reappointment. In its meeting held
on 20th August, 1997, Board of Directors has inducted Mr. B. Santhanam
as an Additional Director, Notice under Section 257 of the Companies
Act, 1956 has been received from a member proposing the appointment of
Mr. Santhanam as a Director at the ensuing Annual General Meeting.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information in accordance with the provisions of 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 is given
in Addendum to this report.
Section 217(2A) of the Companies Act, 1956 read with Companies
(Particulars of Employees) Rules, 1975 is not applicable to the
Company, as none of the employees is getting remuneration above the
prescribed limit. The Company continues to maintain cordial relations
with Workers and Employees of the Company.
The Directors wish to place on record their sense of appreciation for
the continued support of the shareholders and devoted services rendered
by the executives, staff and workers of the Company. The Directors
also acknowledge with gratitude the cooperation and assistance given by
ICICI Societe Generale, Standard Chartered Bank, Foreign Collaborators
and look forward to their continued support.
A. CONSERVATION OF ENERGY
a) Energy Conservation measures taken:
i) In Generators with higher capacity, old radiator system has been
replaced with very efficient new cooling tower generating more power
with the same fuel consumption.
ii) Two Batch type furnaces have been equipped with automatic switch on
device with time control system which has effected 15% to 20% of power
iii) Mirror line heating chamber has been modified and heat load of 300
KW has been brought down to 250 KW with the same efficiency and better
results by introducing 100% Intra-Red heating system (IR) as against
old conventional heating system.
b) Additional investments and proposals, if any, being implemented for
reduction of consumption of energy:
c) Impact of the measures taken at (a) and (b) above for reduction of
energy consumption and consequent impact on the cost of production of
Estimated annual savings of Rs. 8 Lacs is expected to accrue on
implementation of above.
d) Total energy consumption and energy consumption per unit of
production as per Form A of the Annexure in respect of industries
specified in the schedule thereto: Please refer Form A.
B. TECHNOLOGY ABSORPTION
e) Efforts made in technology absorption as per Form B of the Annexure.
Please refer Form B.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO
(a) The Company is now exporting its products viz. Mirrors, Laminated
Safety Glasses and Bevelled Panels to various new countries viz. South
Africa, Australia, Israel, U.S.A; Mauritius, Sri Lanka and Gulf
D. TOTAL FOREIGN EXCHANGE USED AND EARNED
Used Rs.308.89 Lacs Earned Rs.42.76 Lacs
RESEARCH & DEVELOPMENT (R&D)
1. Specific areas in which R&D carried out by the company.
Sound Absorbed Architectural Laminated Glass- Splinter Bullet Proof
Glass-Double glazed sound insulated glass- Mirror-Tempered Glass.
2. Benefits derived as a result of the above R&D.
Improvement in quality. Reduction in Costs. Expansion of Product
3. Future plans of action.
a) Upgradation of laboratory facilities to achieve certified approval
for automotive glass export.
4. Expenditure on R&D
a) Capital No separate records for
b) Recurring R&D are maintained &
c) Total recurring expenditure is
d) Total R&D expenditure merged with various other
as a percentage of
total turnover heads
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION
1. Efforts made towards technology absorption, adaptation and
(i) Argon gas filled insulating glass units have been developed. Now we
are in a position to supply Insulating Glass Units with dry air as well
as with argon gas filled. This has resulted in improved properties in
heat insulation and sound insulation.
(ii) New Quality of Mirror has been introduced with two coats of mirror
backing paint with one base coat and another top coat both being of
(iii) New Quality Control Equipments have been imported to further keep
a constant check on Quality Standards.
2. Benefits derived as a result of the above efforts.
- Production capacities largely enhanced.
- Superior quality products produced.
- Product range enhanced.
3. In case of imported technology (imported during the last 5 years
reckoned from the beginning of the financial year) following
information may be furnished:
a) Technology imported N.A.
b) Year of Import N.A.
c) Has Technology been fully absorbed
d) If not fully absorbed, areas where this has not
taken place, reasons therefore and future
Plans of action N.A