BARODA ELECTRIC METERS LIMITED
ANNUAL REPORT - 1999-2000
BARODA ELECTRIC METERS LIMITED
The Directors submit herewith the 39th Annual Report of the Company
together with the Audited Accounts for the year ended 31st March, 2000.
OPERATION AND TRADING CONDITIONS
During the year the production was 60,558 single phase meters and 52,961
Poly phase meters as compared with 67949 and 12655 respectively for 1998-
99, indicating increase in production of about 78.5%. The average sale
price per meter also increased by about 6% from Rs.359/- to Rs.381 /-.
Resultant inadequate improvement in profitability of the company is
probably due to the change in product mix with increase of Polyphase meters
and static meters.
The improvement in resultant profitability however has kept pace with the
increase in cost.
The outlook of the future indicates improvement in profitability provided
adequate working capital finance is secured. The factors indicating
improvement in outlook are:
1. Recent tenders floated by State Electricity Boards as GEB and PSEB
indicating improvement in demand for energy meters.
2. Establishment of Electricity Regulatory Commissions like GERC and MERC
etc. which should improve the specifications and pricing of the energy
DEVELOPMENT AND DIVERSIFICATION
WIND MILL PROJECT
Energy units credited to the company through Wind mill and
corresponding fund credit is as follows :-
Unit Rs . Unit Rs .
1,27,341 4,05,564/- 1,88,776 6,66,562/-
The company's production of Static energy meters during the year 1999-2000
has been as follows :-
Single phase 68 Nos.
Poly phase 1453 Nos.
Value (Total Sales) Rs.34 lacs (approx.)
Company has made significant progress with the development of static energy
meters particularly in the sphere of tamper resistant meters. The company
has also executed MOU with Natelco for the manufacture of static energy
meters as per the company's design. The Company is looking forward to
sanction by Syndicate Bank of adequate working capital facilities as a
nursing programme for restoring the profitability of the company.
Auditors observations and respective notes to the accounts are self
No fixed deposits were invited, received or are outstanding.
INCOME TAX AND SALES TAX ASSESSMENTS
The Income tax assessment upto 1996-97 i.e. assessment year 1997-98 and
Sales tax Assessment for 1995-96 have been completed.
STAFF AND LABOUR
The liability for the Labour Award has been fully provided for in the
Accounts. Although the award of the Labour Court is still awaited.
The relation with employees otherwise remained cordial during the year.
In accordance with the provisions of the Companies Act, 1956 and Articles
of Association of the Company Shri K.B. Mansharamani and Shri J.S.Aiyer
retire by rotation, but being eligible offer themselves for reappointment.
Messrs Kantilal Patel & Co., Chartered Accountants, Ahmedabad, hold office
as Auditors of the Company until the conclusion of the ensuing 39th Annual
General Meeting and the Board recommends their re-appointment till the
conclusion of the next Annual General Meeting.
The Company has received a certificate from Auditors under Section 224(1)
of the Companies Act,1956 to the effect that their re-appointment, if made,
would be within the prescribed limits under Section 224(1B) of the Act.
Members are requested to consider their re-appointment as Auditors of the
Company for the current year at a remuneration to be decided by the Board
For and on Behalf of Board of Directors
Chairman of the Meeting
REPORT OF THE BOARD OF DIRECTORS OF THE COMPANY PURSUANT TO SECTION
23(1)(b) OF THE SICK INDUSTRIAL COMPANIES (SPECIAL PROVISIONS) ACT, 1985.
Section 23 of the Sick Industrial Companies (Special Provisions) Act, 1985
(`the Act') provides that if the accumulated losses of an industrial
company as at the end of any financial year have resulted in an erosion of
fifty percent or more of its peak net worth during the immediately
preceding four financial years, the company shall within a period of sixty
days from the date of finalisation of the duly audited accounts of the
Company for the relevant financial year report the fact of such erosion to
the Board for Industrial and Financial Reconstruction 'the Board')
constituted under the Act, and hold a General Meeting of the Shareholders
of the Company for considering such erosion. The Company is an industrial
company as defined in the Act.
39th Annual General Meeting of the Company will be held on 26th August 2000
when the accounts for the year ended 31 st March, 2000 will be considered
and adopted. With the finalisation of these accounts which showed that more
than fifty percent of the peak net worth of the Company has been eroded in
view of the accumulated losses amounting to Rs.132.03 lakhs as against the
peak net worth of Rs.225.38 lakhs as on March 31,1997 the provision of the
above said Act have become applicable to the Company.
The Board of Directors' have reviewed the situation and are of the opinion
that market conditions continue to be difficult and in view of the
situation explained, your Company's financial position continues to be
CAUSES FOR EROSION OF MORE THAN FIFTY PERCENT OF THE NET WORTH OF THE
i. Due to slow realization of Debtors, the company cannot liquidate the
Bill discounted on due date and hence overdue interest is payable to
ii. Due to cash crunch, supplier's L.C.'s are not discharged on due date
and hence overdue interest is payable to bank.
iii. Competition in the market causes to lower market price of the products
of the company.
iv. Finalisation of wage settlement with workers increase the wage bill of
MEASURES TO OVERCOME THE POTENTIAL SICKNESS OF THE COMPANY
i) Negotiation are under way with suppliers for credit facilities in lieu
of suppliers against L.C.
ii) Efforts to realise debtors on due date.
iii) To get better market price for the products of the company.
iv) Development of static meters in which company can get better margin.
BY ORDER OF THE BOARD OF DIRECTORS
(N. G. KAMAT )
PLACE : VALLABH VIDYANAGAR.
DATE : 29th June 2000
ADDITIONAL PARTICULARS REQUIRED UNDER COMPANIES (DISCLOSURE OF PARTICULARS
IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988 FORMING PART OF THE
DIRECTORS REPORT FOR THE YEAR ENDED 31ST MARCH 2000
A CONSERVATION OF ENERGY
The energy consumption by the company being limited. The scope of energy
conservation may not be significant. However the company's efforts are
continuing in making its products energy efficient.
B RESEARCH & DEVELOPMENT (R&D)
1. Specific area in which R&D is carried out by the company.
Microprocessor based (digital) single phase and polyphase static energy
meters: More specifically the products being developed are singlephase kwh
meters, single phase KVA meters, three phase KWH meters and three phase
2 Benefits derived as a result of above R&D
These static meters have been developed for use in house service and
industrial applications and a replacement to the Ferrari's
electromechanical meters. The Static meter have better sustained accuracy.
They incorporate a number of tamper resistant features and are energy
3 Future plan of action:
Shift the static meter production from pilot production plant to higher
capacity production line.
4. Expenditure on R&D
Rs. 5.04 Lacs (Previous Year Rs.4.42)
5 Technology absorption, adaptation and innovation:
Does not arise as the development is through in-house R&D