B.J.DUPLEX BOARDS LIMITED
ANNUAL REPORT 1999-2000
Your Directors hereby presents the sixth Annual Report together with the
Audited Accounts of the Company for the Year ended 31st March, 2000.
During the year company's turnover was Rs. 737.31 lacs as compared to Rs.
1429.51 Lacs during the previous year declining substantially. The total
production during the year was 6545 M. Tonnes as compared to 10282 M.T
during the previous year.
During the year under review, your Company has suffered heavy losses
resulting the erosion of net worth of the Company, Your company could not
operate the plant in a stabilised manner during the year on account of
various factors viz;
The manufacturing process employed in the plant uses a large quantity of
water. The used water was being discharged after treatment through effluent
treatment plant into a drain. Due to construction of bridge over the drain,
the Company was asked to discontinue discharging the water as the discharge
would hamper the bridge construction work. The Company was thus forced to
recycle the waste effluent treated water and the same effected the
performance of the plant, particularly the M.G. Cylinder, which developed
pitting on its surface, in turn effecting the surface of the finished and
quality of the board. Due to this a large quantity of defective goods
entered in the market, for which payments have been held up resulting in
shortage of working capital. The Company has to shut down the plant for
about one and half month for the repair of M.G. Cylinder.
The Company's on going efforts to stabilise the production operation caused
distruption in continues operation of the plants working. The consumption
of various material increased significantly including fuel for firing the
boiler as steam was being wasted, wastage of chemical in the pulper at the
time of stoppage of machine, consumption of chemical for improvement of
quality, consumption of oil and lubricants for maintenance of boiler and
other plants and equipment due frequents shut down of the plant.
A fire occured in the plant in November, 1999 resulting loss of raw
material estimated at Rupees 195 lacs causing major distruption in
production operation. The company has filed the claim to recover the loss
and the Insurance Company is yet to settle the claim.
In view of the technological advancement in paper industry/status of Plant
& Machinery of the Company and other commercial consideration, in respect
of plant and machinery the method of depreciation has now been changed from
straight line method to written down value method at the rates and in the
manner specified under schedule XIV (as amended) to the Companies Act,
Due to heavy losses and short fall of working capital, the Company could
not make the payment to the Financial Institutions i.e. the Haryana State
Industrial Development Corporation Limited (HSIDC) towards the repayment of
term loan and interest. Your Company has made repeated request to the
institution for the reschedulement of the loan but the same has not been
done. Despite this, the HSIDC had taken over the unit u/s 29 of the SFC
Act, 1951 on 25th March, 2000 and the HSIDC on persuation by the Company
handed over the unit to the Company on 2nd April, 2000.
EROSION OF NET WORTH
During the year the losses of the Company as on 31.03.2000 has exceeded the
net worth of the Company and your Company has become Sick Industrial
Company within the meaning of Section 3(1)(o) of the Sick Industrial
Companies (Special Provisions) Act, 1985 as per the provision of section 15
of the Sick industrial companies (Special Provision) at 1985 a reference is
required to be made to the Board for Industrial and Financial
Reconstruction. Mr.Satya Bhushan Jain, Director of the Company has been
authorised by the Board of Directors to file the reference and to take the
necessary steps in this regard.
Your directors are making their sincere efforts to pull out the Company
from the red.
Shri Vishwa Bandhu has been appointed Additional Director during the year
w.e.f. 25.02.2000 by the Board of Directors of the Company. Due to sudden
fall in his health Shri Vishwa Bandhu has resigned as director of the
Company w.e.f. 15.03.2000.
Shri Satya Bhushan Jain and Shri Pankaj Jain, Directors of the company has
resigned as directors of the Company w.e.f. 03.03.2000 and the board
accepted the same with due appreciation for the efforts taken by them for
the promotion of the Company during their tenure.
Shri Satya Bhushan Jain and Shri Pankaj Jain, have been appointed as
additional director of the Company w.e.f. 11.03.2000. Your board recommend
their appointment as director of the Company.
Shri Ram Narain Jain, Director of the company retires at ensuing Annual
General Meeting and being eligible, offers himself for re appointment.
M/s. Rajiv Srichand & Co. Chartered Accountants, auditors of the Company
retires at the conclusion of the ensuing Annual General Meeting and are
being eligible for re-appointment. They have indicated the willingness to
accept the re-appointment and have further confirmed their eligibility
under section 224 (IB) of the Companies Act, 1956.
The observation of the Auditor's are explained where ever necessary to the
extent of their satisfaction.
The Company has not accepted any fixed deposits from the public.
PARTICULARS OF EMPLOYEES
There was no employee during the year under review whose particulars are to
be given pursuant to the Section 217 (2A) of the Companies Act 1956, hence
information required under this section is not given.
FOREIGN EXCHANGE EARNING AND OUTGO
During the year there was no earning and outgo in Foreign Exchange.
CONSERVATION OF ENERGY
The plant and all auxiliaries were operated in the most optimum way to
consume minimum auxiliary power Research and Development and Technological
a. Research & Development:: There is no separate Research & Development
department of the Company, however the efforts of the management in the
normal course are directed towards productivity, improvement and better
control on quality improvement and higher efficiencies. There is no other
particulars to be furnished as per "Form B".
b. Technological Absorption : The management has created a work culture in
the organisation to foster innovations in all functions including
production. The Company has machineries of latest technology and is
adopting the processes of production to the state of art technology.
Your Directors would like to express their grateful appreciation for the
co-operation and continued assistance received from various state and
central government authorities, financial Institutions and banks.
By the Order of the Board
for B.J. DUPLEX BOARDS LIMITED
Place: Delhi SATYA BHUSHAN JAIN
Dated: 13/04/2000 Chairman