AUTOCOMPS INDIA LIMITED
ANNUAL REPORT 1999-2000
Your Directors have pleasure in presenting the Fifteenth Annual Report
together with the audited statement of Accounts for the financial year
ended 31st December. 2000.
The significant accounting policies on the basis of which accounts have
been drawn and other significant matters have been detailed in the Notes to
the Accounts 'N' and are self explanatory
Your Company achieved a gross revenue of Rs. 1124.93 lacs for the period
under review as compared to Rs. 1812.19 lacs (18 months) in the previous
Financial Year. The operational losses during the period under review were
Rs. 116.73 lacs as compared to the loss of Rs.986.19 sacs (18 months) in
the previous Financial year. The net loss, for the period under review,
after depreciation of Rs. 75.09 lacs (Rs. 128.09 lass in the previous
Financial Year) are Rs. 191.82 lacs as spared to the loss of Rs.1114.28 (18
months) in the previous Financial year which resulted a decrease in net
loss of 82.8%
Your Company's turnover had registered a negative growth of approximately
7% during the year under review inspite of orders in hard as the working
capital limits of the Company were sanctioned but not available for
disbursement by the Banks.
Your Company has consistently concentrated on export to Eastern Countries
such as Sri Lanka and Bangladesh. It also continues to explore new export
markets and avenues for its. product.
Your Directors are pleased to inform that the Company continued with its
sustained efforts in improving the quality of its products and regularly
checking on rejections. During the period under review, the Company
continued supplies to LML, Bajaj Auto Ltd., and other OEMs.
The net worth of your company has been consistently improving by induction
of Rs. 19 crores towards the equity share capital which was allotted to
Mannesmann Sachs AG and then transferred to Mr. Ashish Dasgupta on the
directions of the Board for Industrial and Financial Reconstruction.
The name of the Company was changed from Sachs India Limited to AUTOCOMPS
INDIA LIMITED with effect from 21 June, 2000.
Mr. Chinubhai R. Shah retires by rotation and being eligible offers himself
On the basis of stipulated conditions of sanctioned letter issued by the
Canara Bank, Mr. Arun Kumar Nahar, Asst. General Manager, Canara Bank was
appointed as Nominee Director of Canara Bank.
M/s. Goyal Sanjay & Associates, Chartered Accountants were appointed as
Auditors of the Company. They have confirmed that their appointment, if
made, will be within the limits specified in Section 224(1-B) of the
Companies Act, 1956.
The Auditors' observations and/or qualifications are detailed in the
Auditors' Report annexed hereto and are self explanatory and be read
together with the Notes to the Accounts in Schedule 'N' annexed to the
Information pursuant to Section 217(2A) of the Companies Act, 1956 read
with the Companies (Particulars of Employees) Rules, 1975 forms part of
this Report and enclosed as Annexure - 1.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
The information relating to conservation of energy, technology absorption
and foreign exchange earnings and outgo as required under section 217(1)(e)
of the Companies Act, 1956 read with the Companies Rules, 1988 forms part
of this Report and enclosed as Annexure - II.
We wish to convey our sincere thanks to the Board for Industrial and
Financial Reconstruction, the Central Government, State Government of
Himachal Pradesh, Financial Institutions, Banks and other concerned
Agencies for their co-operation extended to the Company.
We also wish to record our deep appreciation of the contributions made by
the employees at all levels towards our efforts to revive the Company and
make it a profitable venture in the near future.
For and on behalf of the Board
Place: New Delhi
Date : 15.01.2001 MANAGING DIRECTOR DIRECTOR
ANNEXURE I TO THE DIRECTORS' REPORT
PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION
AND FOREIGN EXCHANGE EARNINGS & OUTGO AND FORMING PART OF DIRECTORS REPORT
FOR THE PERIOD ENDED 31ST DECEMBER, 2000.
A. Conservation of energy :
a. Energy conservation measures taken
Efforts have been taken to conserve and optimise use of energy through
improved operation methods, machinery and other means.
b. Additional investments and proposals, if any, being implemented for
reduction of consumption of energy --NONE--
c. Impact of the measures at (a) and (b) above for reduction of energy
consumption and consequent impact on the cost or production of goods.
d. Total energy consumption and energy consumption per unity of production
as per Form A of the annexure in respect of Industries specified in the
B. Technology absorption :
a. Efforts made in technology absorption as per Form B of the Annexure.
(See Rule 2)
Form for disclosure of particulars with respect to absorption
Research and Development (R&D)
1. Specific areas in which R&D carried out by the Company.
Development of different Shock Absorbers for new applications in the OE and
After Market segments
2. Benefits derived as a result of the above R & D.
Some of the abode developments have resulted in regular commercial
production during the period under review Sustained results are expected
during the current year also.
3. Future plan of action
The R&D activities are being focussed on improving ride comfort and safety
through improved design of Shock Absorbers to be used in the Motor Cycle
and Scooters segment. Investment has been made in acquiring high quality
machinery for testing and performance monitoring.
Expenditure on R & D
(a) Capital (Work in Progress)
(b) Recurring Rs. 35985.97
(c) Total Rs. 35985.97
(d) Total R & D expenditure as a percentage
of total turnover. 0.04%
Technology absorption, adaptation and innovation
1. Efforts in brief made towards technology absorption, adaptation and
With the technology available, AutoComps is developing Shock Absorbers for
new applications. During the year the Vario Gas Charged Shock Absorbers
have been developed and are under field trials. In addition, constant
review is being carried out of the designs, manufacturing processes,
quality and process control and materials management systems of the
2. Benefits derived as a result of the above efforts, e.g. product
improvement, cost reduction, product development, import substitution, etc.
The Benefits derived shall further reflect constant improvement in the
quality of Company's products in the coming years.
In case of imported technology (imported during the last 5 years reckoned
from the beginning of the financial year), following information may be
(a) Technology imported )
(b) Year of import. )
(c) Has technology been fully absorbed? ) NOT APPLICABLE
(d) If not fully absorbed, areas where )
this has not taken place, reasons therefore )
and future plans of action. )
G. Foreign Exchange earnings and outgo
(f) activities relating to exports; initiatives taken to increase exports;
development of new export markets for products and services; and export
The Company executed a small export order. However constant efforts are
being rnade to explore neighbouring export markets.
(g) Total foreign exchange used and earned.
Foreign Exchange earning - Rs. 18,G7,110/-
Foreign Exchange Outgo - NIL