The Board of Directors hereby present the 5th Annual Report of the Company alongwith audited accounts for the
year ended 31st March, 1998.
FINANCIAL RESULTS :
The summarised financial results for the year ended 31st March, 1998
are as under :-
(Rs. in Lacs)
PARTICULARS 1998 1997
Sales & Other Income 330.81 556.19
Profit/(Loss) before depreciation and tax (322.19) (90.11)
Depreciation 94.06 17.22
Provision for Taxation Nil Nil
Profit/(Loss) after tax and depreciation (416.25) (107.33)
Profit Brought Forward 48.59 155.73
Prior period adjustments (3.15) 0.19
Amount transferred to General Reserve NIL NIL
Balance carried to balance sheet (370.81) 48.59
No dividend has been recommended for the financial year 1997-98.
CURRENT OPERATIONS AND FUTURE PROSPECTS :
During the year, the company has incurred the loss primarily due to bad
realisations from the overseas buyers and depressed conditions in the international market.
The company is suffering from delay in realisation of export proceeds
which together with worldwide recession has badly affected the financial position of the company. It has
offered discounts to the overseas buyers to clear the outstandings and it has been compelled to suspend
further exports till improvement in situation.
Sh. Vidya Sagar Gupta, director of the company retires by rotation at the ensuing Annual General Meeting and
being eligible offers himself for re-appointment, Smt. Ritu Gupta was appointed as additional director during
the year in the board meeting held on 1.12.97 and retires at the ensuing AGM.
Sh. Yogesh Kumar Goel was appointed as additional director during the year in the board meeting held on
18.08.98. He is proposed to be appointed as nominee director of PSIDC in the ensuing AGM.
The existing auditors of the company M/s Deepak Kumar & Associates retire at the ensuing AGM. The company
has received a certificate from
them to the effect that their appointment, if made, would be within the
limits prescribed in section 224(1B) of the Companies Act, 1956. The notes to the accounts read with the
Auditors' Report are self explanatory and, therefore, do not call for any further comments.
The company hereby appreciates the dedication with which employees of the company have worked during the
year. There is no employee drawing salary in excess of limits prescribed under section 217(2A) of the
Companies Act, 1956.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO :
The particulars relating to conservation of energy and technology absorption are given in annexure to the
report. Particulars of Foreign
Exchange Earnings and outgo are furnished as under :-
01. Foreign Exchange Earnings Rs. 112.11 lacs
02. Foreign Exchange Outgo Rs. 2.24 lacs
Measures undertaken for conservation of Energy
The manufacturing process does not involve heavy use of power and only
electric power is used for running of machines. As such no special technique for conservation of energy has
been adopted as the expenditure on power is not significant.
Disclosure of Particulars with respect to Technology Absorption.
The company has installed imported machinery equipped with latest technology. The manufacturing process of
the company is well accepted
and indigenised. The company has fully absorbed the entire process technology. The nature of manufacturing
process is relatively simple and the company is not undertaking significant research and development