The Directors have pleasure in presenting the Eighth Annual Report and Audited Accounts of the Company for the
year ended 31st March, 1998.
The financial Results of the Company for the year ended 31st March, 1998 are as under :
(Rupees in Lacs)
Year ended on Year ended on
SALES & OTHER INCOME 1058.37 1372.98
Loss before interest and Depreciation (206.20) (245.70)
Add : Interest 144.86 108.12
Depreciation 187.61 214.40
Loss before Taxation (538.67) (568.22)
Less : Provision for taxation - -
Loss after tax (538.67) (568.22)
Less/Add : Depreciation relating
to earlier years written back/off 0.50 160.50
Add/Less : Balance brought forward
from previous year (593.57) 135.15
Loss carried to Balance Sheet (1131.74) (593.57)
COMPARISION WITH PROJECTIONS MADE IN THE LETTER OF OFFER
(In terms of clause 43 of the Listing Agreement)
The company has given following profitability projections in the Letter of Offer dated 07.01.1995, issued to
the Shareholders of the Company.
Projections and Actual for the year 1997-98
(Rs. in Lacs)
Particulars Projected Actual
A. Sales 9720.00 1044.78
B. Profit/(Loss) after tax 939.00 (538.67)
YEAR IN RETROSPECT
During this year the company has made a Sales and Other Income of Rs. 1058.37 lacs as against the amount of
1372.98 lacs during the previous year. The Company could not achieve the targeted results and had incurred a
cash loss of Rs. 351.06 lacs due to slow down in construction activities, adverse market condition, increase
in input costs and shortage of working capital.
EROSION OF NETWORTH
As explained earlier, the performance of the Company for the year ended 31.3.98 has not been satisfactory.
The company has incurred a net loss of Rs. 538.67 lacs for the year 1997-98, together with the brought
forward net loss of Rs. 593.57 from the year 1996-97 resulted in total cumulative loss of Rs. 1131.74 lacs,
thereby leading to erosion of entire net worth of the company. The company became a Sick Industrial Company
within the meaning of Section 3(i)(o) of the Sick Industrial Company (Special Provisions) Act, 1985 based on
the audited accounts of the company for the year ended on 31.3.98. The Board of Directors have decided to
make a reference with the Honourable Board for Industrial and Financial Reconstruction (BIFR) in terms of
Section 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985.
The Company has not accepted any fixed deposits from the Public, and hence Provision of section 58(A) of the
Companies Act, 1956 are not applicable.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO
Information Pursuant to section 217(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 Annexure 1 of this Report.
PARTICULARS OF EMPLOYEES
No employee is required to be covered in the statement of particulars of the employees in terms of Section
217(2A) of the Companies Act, 1956.
Mrs. Lalita Jalan, Director retires by rotation and is eligible for reappointment.
Messers K.K. Naria & Company, Chartered Accountants, Auditors of the Company retire and are eligible for
The notes referred to by the Auditors in their Report are self explanatory and do not require further
ANNEXURE TO THE DIRECTORS' REPORT FOR THE YEAR ENDED 31.03.1998.
Statement of Particulars under the Companies (Disclosure of Particulars in the Report of Board of Directors)
Rules, 1988 to the extent applicable :
A. CONSERVATION OF ENERGY
Measures for energy conservation is taken up as part of ongoing programme. Details of energy consumption as
per prescribed format is enclosed.
B. TECHNOLOGY ABSORPTION
Company have not yet measured by standards for technology absorption and adoption and motivation.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO
a. Foreign Exchange used
i. Import of Capital Goods Nil DM 26250
b. Foreign exchange earned Nil Nil