AVS INDUSTRIES LIMITED
DIRECTORS' REPORT TO THE MEMBERS
The Directors present herewith the 15th Annual Report of the company
together with the Audited Statements of Accounts for the year ended 31st
In view of losses the directors regret their inability to recommend any
During the year under review sales and conversion charges were Rs.983.97
Lacs as against Rs.5778.52 Lacs of previous year. The operations for the
year under review resulted in a net loss of Rs.1405.93 Lacs. The main
reason for company's dismal performance during the year is continuous
recession in the Steel Industry.
REFERENCE TO BOARD FOR INDUSTRIAL & FINANCIAL RECONSTRUCTION (BIFR).
In view of total erosion of net worth of the company your directors have
formed an opinion in the Board Meeting dated 20th April 1999 that the
company has become sick u/s 3(1) (O) of the sick Industrial Companies
(Special provisions) Act 1985 (SICA) and company has to make a reference to
BIFR u/s.15(1) of the said Act.
The company has not invited or accepted any Public Deposits during the
Shri G.D.Singi, Director of the Company retires by rotation and being
eligible offers himself for re-appointment.
The nomination of Shri M.T. Chiddarwar was withdrawn by SICOM Ltd. and
consequently Shri M.T. Chiddarwar ceased to be a director of the Company
with effect from 30th January 1999. The Board has recorded with
appreciation the valuable services rendered by Shri M.T. Chiddarwar during
his tenure as a director of the company.
Shri V.D. Goenka and Shri A.V. Singi resigned from their directorship
during the year. The Board places on record its appreciation for the
valuable services rendered by them during their tenure as a director of the
Shri G.P. Jhawar was appointed as an additional director of the Company by
the Board of Directors in their meeting held on 30th March 1999 and retires
at the ensuing Annual General Meeting. The Company has received a requisite
notice under section 257 of the Companies Act, 1956 from a member
signifying his intention to propose the candidature of Shri G.P. Jhawar for
the office of the director, he is eligible for appointment.
PARTICULARS OF EMPLOYEES
Particulars in accordance with requirement of Section 2172A) of the
Companies Act, 1956 read with the Companies (Particulars of Employees)
Rules,1975 as amended have not been furnished as there was no employee in
the aforesaid category during the year.
Information in accordance with the provisions of 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 requiring disclosure of
particulars regarding Conservation of Energy, Technology Absorption and
Foreign Exchange Earnings and Outgo is given in the prescribed format
annexed hereto (Annexure 1) and forms part of this report.
The observations made by the auditors with reference to notes to the
Accounts for the year under report are self explanatory and need no further
comments from the Directors.
M/s. Khandelwal Jain & Co., Chartered Accountants, the Auditors of the
Company will retire at the fortheoming Annual General Meeting and are
eligible for re-appointment. The Company has received a certificate from
the Auditors to the effect that their re-appointment, if made would be
within the prescribed limits under Section 224(1-B) of the Companies Act,
1956. The members are requested to appoint the Auditors and fix their
Your Directors place on record their appreciation of the valuable Co-
operation and support of Customers, Shareholders, Company's Banker,
Financial Institutions and Government Authorities. The Board also places on
record its profound admiration and sincere appreciation of the continued
hard work put in by the employees and workers at all levels.
FOR AND ON BEHALF OF THE BOARD
PLACE: MUMBAI G.D.SINGI
DATE : 20th April, 1999 CHAIRMAN
ANNEXURE TO THE DIRECTOR'S REPORT
ANNEXURE - I
Information in accordance with the Companies (Disclosure of Particulars in
the Report of the Board of Directors) Rules 1988.
(A) CONSERVATION OF- ENERGY
(a) Energy conservation measures taken:
The Company is committed to conserving energy and making best use of it.
Various measures like providing automatic power factor controllers,
replacing Diods, improving efficiency of H.F. Welder by provision of
efficient cooling tower, trial runs of energy conserving devices etc. were
(b) Additional investments and proposals, if any, being implemented for
reduction in consumption of energy: Nil
(c) Impact of the measures at (a) and (b) above for reduction of energy consumption and consequent impact on
the cost of production of goods:
Since energy accounts for a significant part of the total overhead cost to
the Company, the measures taken have contributed to a good extent in terms
of amount, though they have definitely reduced and helped to arrest the
(d) Details of total energy consumption and energy consumption per unit of
production: As per Form 'A' given below:
(B) TECHNOLOGY ABSORPTION, ADOPTION AND INNOVATION: .
1. Efforts made in brief towards technology absorption, adoption and
Priority has been accorded to absorption and adoption of technology and the
company has made significant efforts to achieve efficiencies.
2. Benefits derived as a result of the above efforts, e.g. product
improvement, cost reduction, product development import substitution, etc.
as mentioned above.
3.Imported technology: Nil Nil
C) FOREIGN EXCHANGE EARNINGS AND OUTGO;
Total Foreign Exchange earned: Rs. Nil Rs. 11,52,622
Total Foreign Exchange used: Rs. Nil Rs.1,35,40,924