The Directors present the Annual Report and the Audited Accounts for
the year ended 31st March 2002.
Your Company attained an all-time high turnover of Rs. 524 crores
during the year, as against Rs. 402 crores in the previous year; an
increase of 30%. Operating profit for the year increased to Rs. 29.87
crores. After providing financial charges of Rs. 32.81 crores,
depreciation of Rs. 15.93 crores and tax credit of Rs. 6.93 crores,
there was a deficit of Rs. 11.94 crores.
It was yet another challenging year. The continued slowdown in the
economy has particularly impacted the transport sector which in turn
has affected demand for tyres. It is satisfying to note that despite
this, your Company has registered a significant increase in sales
turnover and operating profit. Interest and depreciation were higher
on account of the investments made in modernisation of Companys
plants. The full benefits of modernisation will be derived in the
As reported earlier, several initiatives taken to synergise the
activities of Vikrant and JK Tyre in the areas of sales, distribution,
procurement and supply chain management have yielded substantial
benefits to your Company.
The Company signed a long-term productivity linked wage agreement with
the workmen in February 2002. A voluntary retirement scheme was also
introduced to rationalise the workforce. This should lead to
significant increase in production and better plant performance which
augurs well for the Companys future.
Considering the loss during the year, your Directors are unable to
propose any dividend.
All-Steel Truck/Bus Radials
Your Company has the distinction of being the only one in India to
commercially manufacture Ail-Steel Truck/Bus Radials. It is indeed
heartening to note that concept selling approach being pursued by your
Company to promote radial tyres in the truck and bus segments has been
a major boost to the radialisation process in the country. The
Companys All-Steel Truck/Bus Radial Tyres incorporating the latest
technology are finding increasing acceptance with the consumers.
With the Governments increased focus on development of road network,
radialisation in commercial sector is bound to pick up and your
Company is well-positioned to take full advantage of the opportunity.
Your Company achieved yet another landmark by achieving the highest
ever export of Rs. 119 crores - 51% higher than the previous year.
Your Companys products enjoy high customer satisfaction in export
markets. The Award of Certificate of Merit from Capexil was received
for the fourth year in succession.
Human Resource and Industrial Relations
The Company regards Human Resource among its most valuable assets.
Shared vision and building result-oriented teams have been the
cornerstone for improving the performance of the Company. Emphasis is
laid on constantly upgrading the job related skills and imparting new
management techniques to its people to enable them to achieve
corporate goals in the challenging times and at the same time,
fulfilling individual aspirations.
Industrial relations during the year remained cordial.
Shri K. S. K. Khare was nominated as a Director by LIC in place of
Shri B. R. Sethi. Shri B. Ravindranath was nominated as a Director by
IDBI in place of Shri R. Balasubramaniam. Shri Chiranjiv Singh, IAS
and Shri S. Swatantra Rao, IAS, were appointed as Directors
respectively in the casual vacancies caused by Shri C. Gopal Reddy,
IAS and Shri C. K. Neelakanta Raj, IAS, ceasing to be Directors.
KSIIDC withdrew the nomination of Dr. H. Basker to the Board. The
Board of Directors place on record their appreciation of the valuable
services rendered by Shri C. Gopal Reddy, Shri C. K. Neelakanta Raj,
Shri B. R. Sethi, Shri R. Balasubramaniam and Dr H. Basker during
their tenure as Directors.
Shri Srawan Kumar Bagla, Shri Om Prakash Khaitan and Shri Kama Singh
Mehta, retire by rotation at the forthcoming Annual General Meeting
and being eligible, offer themselves for re-appointment.
M/s K. P. Rao & Co., Chartered Accountants, Mysore, the Auditors of
the Company, retire at the conclusion of the ensuing Annual General
Meeting and are eligible for re-appointment. The appointment of
Auditors is required to be made by a Special Resolution pursuant to
Section 224A of the Companies Act, 1956. The observations of the
Auditors in their Report on Accounts read with the relevant notes are
Cost Audit for the year ended 31st March 2002 will be conducted by the
Cost Auditors and the report will be submitted to the Department of
Company Affairs, Government of India.
Particulars Of Employees
None of the employees, during the whole or part of the year, was in
receipt of remuneration prescribed under the Companys (Particulars of
Employees) Rules, 1975 as amended.
Conservation of Energy etc.
The details as required under the Companies (Disclosure of Particulars
in the Report of Board of Directors) Rules, 1988 are annexed.
Pursuant to Clause 49 of the revised Listing Agreement with the Stock
Exchanges, a Management Discussion & Analysis and a Corporate
Governance Report are annexed.
Audit & Shareholders/Investors Grievance Committee.
Audit Committee - Your Company has an Audit Committee of Directors in
place since 1986. The Terms of Reference of the Committee have been
revised as per the provisions of Section 292A of the Companies Act,
1956 and Clause 49 of the Listing Agreement.
Shareholders/Investors Grievance Committee -
Your Company has been having a structured system of reviewing
shareholders/ investors complaints. A specific Committee of
Directors has now been constituted, as per provisions of the Listing
Agreement to look into redressal of such complaints.
Directors Responsibility Statement
As required under Section 217 (2AA) of the Companies Act, 1956, your
Directors state that:
i. in the preparation of Annual Accounts, the applicable accounting
standards have been followed along with proper explanation relating to
ii. the accounting policies have been selected and applied
consistently and judgements and estimates have been reasonably and
prudently made when required so as to give a true and fair view of the
state of affairs of the Company at the end of the financial year and
of the profit and loss of the Company for that period;
iii. proper and sufficient care has been taken for maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities; and
iv. the annual accounts for the financial year have been prepared on a
going concern basis.
The Board places on record its appreciation for the valuable inputs
provided by J. K. Industries Ltd. in all areas of operation. The Board
also acknowledges the support extended by Government of Karnataka,
Financial Institutions, Banks and the Technical Collaborators, M/s
Continental AG. The Directors wish to thank all the Shareholders,
State Transport Undertakings, Dealers and the valued Customers for
their patronage and support. The Directors also convey their
appreciation Shri Om Prakash Khaitan to the employees at all levels
for their continued support.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
The Companies (Disclosure of Particulars in the Report of the Board of
Directors) Rules, 1988.
A. CONSERVATION OF ENERGY
The Company has taken various measures for Energy Conservation like
maximising use of daylight and time clock for streetlight, Steam Trap
Management, Upgradation of Induced Draft/ Forced Draft fan by
providing Variable Frequency Drive along with Combustion Management.
Optimisation of chilled/ cooling water depending on process needs.
Automatic control of cooling water temperature by monitoring operation
B. AREA OF ADDITIONAL INVESTMENT PROPOSAL.
Further Energy Saving projects identified for implementation are
replacement of Oil fired boiler by Coal fired boiler, revamping of hot
water generator and providing auto control for heavy duty equipments.
3. Consumption Per unit of Production
i) Electricity (Kwh/MT) 1056 1189
ii) Furnace Oil (Litre/MT) 275 308
C. TECHNOLOGY ABSORPTION.
1. RESEARCH & DEVELOPMENT (R&D)
a) Area of R&D Activities:
Development of new sizes of All-Steel Truck/Bus Radial Tyres both for
Indian and International markets was the focus of R&D. In the bias
tyre category, new tyres for various identified segments of the market
The Company has arrangement with Hari Shankar Singhania Elastomer and
Tyre Research Institute (HASETRI) for R&D support.
b) R&D Expenses
Total expenditure incurred during the year was Rs. 87.56 lacs which
amounted to 0.17% of the net turnover.
2, TECHNOLOGY ABSORPTION, ADOPTION AND INNOVATION
The Company is putting greatest emphasis on absorption of technology.
All efforts are made to adopt the latest technology as well as to
implement the same on continuous basis with the assistance of the
collaborators, M/s Continental AG.
D. EXPORT, FOREIGN EXCHANGE EARNINGS AND OUTGO
(RS. IN LACS)
Foreign Exchange 11919.20 7936.61
Earnings (on account
of Export Sales - FOB value)
Foreign Exchange Outgo 8646.46 7450.55
For and on behalf of the Board
New Delhi B. S. Patil
28th June 2002 Chairman