Summary of Financial Results -
(Rs. in Lacs)
Previous Year Ended Current Year Ended
Total Income 3569.22 1543.20
Total Expenditure 2253.79 1564.05
Interest 253.48 3109.40
Gross Profit after Interest
But before Depreciation 1061.95 (3130.25)
Depreciation 1466.17 1264.45
Provision For Taxation Nil Nil
Net Profit/(Loss) (404.22) (4394.70)
The Company was awarded a major contract from Maharashtra State
Electricity Board for manufacture, installation and commissioning of
L.T. Load Management System on 27th March, 1997. The same was partly
executed by the company upto December 1998.
The contract is now in dispute and company has invoked Arbitration
Clause. The company has been advised that, it has a STRONG CASE on
Merits and in Law.
Due to the above circumstances, company's Cash Flow planning collapsed
and has affected payments of interest and principle to Financial
Institutions, Banks and other Financers and also loss of substantial
The Directors of the company have abstained from claiming any Salary or
Bonus or Dividend due to this reason during the financial year as a
token of their commitment.
No Dividend is recommended in view of losses suffered by the Company
during the financial year.
In view of losses during the financial year, Company has not made any
provision for Income Tax.
HUMAN RELATIONS IN THE COMPANY
The Company sincerely acknowledges the outstanding contribution from
all its members. Various schemes of mutual benefit have been initiated
and implemented during the year.
(A) Mr. Kamlesh Morarji and Mr. M.G. Varade retire by rotation and
being eligible offer themselves for re-appointment.
(B) Mr. S. Ramlingam is appointed as Nominee Director of Industrial
Investment Bank of India in place of Mr. D.P. Chakraborty w.e.f. 24th
November 2000 by the said Financial Institution.
QUALIFICATIONS IN AUDITORS REPORT
1. Now the LTLMS Project is no more under implementation the amount of
Rs. 24.98 Crores, on account of interest paid, has been debited to
Profit and Loss Account and unpaid lease rent and hire purchase rent of
Rs.21.66 Crores has been Capitalised,
2. Since the matter is subjudice, the accumulated Capitalised balance
of Rs.123.71 Crores has not been considered while preparing current
year's Profit and Loss Account
REPORT UNDER SECTION 217 (2A)
Particulars of employees as required under section 217 (2A) of the
Companies Act, 1956 read with the Companies (Particulars of Employees)
Rules, 1975 are annexed.
REPORT UNDER SECTION 217 (1) (e)
Information 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, is given in the annexure to the
The Auditors, M/s. S.J. Mene & Co. Retire at the conclusion of this
Annual General Meeting and being eligible, offer themselves for
The Directors wish to place on record their appreciation for the
valuable co-operation received by the Company from its Bankers and
Additional information as required under the Companies (Disclosure of
Particulars in the Report of Board of Directors) Rule, 1988.
A. Conservation of Energy :
The Company is not an energy intensive unit and therefore the costs of
energy do not form a substantial part of the manufacturing costs. Every
care is taken to avoid the wastage of electricity.
B. Technology Absorption :
1) Research and Development
(a) Development of Amorphous Magnetic Materials.
(b) Optimization of Plastic Parameters.
2) Benefits derived as a result of this R & D -
(a) Cost Savings
(b) Lesser toxic waste
(c) Higher reliability of products
3) Future Plans
The focus for the next year is on utilization of existing technologies
and expansion of the product range.
4) Expenditure.on R & D
The expenditure on R&D during the financial year 1999-2000 was Rs,
Technology absorption, adaptation and innovation :
In brief, the efforts made towards technology absorption, adaptation
and innovation have been :
(a) Improvement in product design
(b) Improvement in processes
(c) Introduction of advanced quality monitoring schemes
C. Foreign Exchange Earning & Outgo :
Total Foreign Exchange Earnings - Rs. 44.77 lacs
Total Foreign Exchange Outgo - Rs. 85.10 lacs
Raw Material Import - Rs. 85.10 lacs
Machinery Import - NIL