BHARAT SEATS LIMITED
It gives me immense pleasure to welcome you all to the 9th Annual General
Meeting of the Bharat Seats Limited. The audited balance sheet and Profit
and Loss account for the year ended on 31-03-96 together with Directors'
Report have been with you and I presume that you had the opportunity of
going through the same and I can take it as read.
In line with the automobile boom your Company's turnover has increased from
Rs. 64.87 crores to Rs. 76.50 crores i.e, showing a rise of 17.91% whereas
your profit before tax and after depreciation has increased from Rs.2.17
crores to Rs.2.93 crores i.e an increase of about 34.65% on an annualised
Looking into the better profitability and secured future your Company has
recommended an increased dividend of 15% against last years 12.5% i.e. out
of Rs.1.71 crores profits available for appropriation your Company will
distribute Rs.47.10 lacs as dividend and will carry forward Rs.1.24 crores
to Reserves Account.
Against a Capital of Rs. 3.14 crores, the Reserves & Surplus of your
Company has gone up from Rs.5.13 crores last year to Rs.6.23 crores this
year thus creating a sound and healthy financial position.
On the operational front we expect that our production will increase, as
Maruti Udyog Limited production is likely to increase by more than 20% over
last year's production level. Your Company hopes to gain substantially by
the increased target of Maruti Udyog Limited.
In the last four months, I am happy to inform that we have produced 41,453
seat sets against last years 36,973 seat sets for the corresponding period
thus showing a rise of 12.10% over last year's production level.
Not only your Company is giving thrust to additional productivity but also
to product upgradation and improvement in Quality. We have already
developed new features in the YE2 model with the co-operation of M/s Maruti
Udyog Limited, M/s Suzuki Motor Corporation, Japan and our technical
collaborators M/s Houwa Kogyo Co. Ltd., Japan. You will be happy to note
that these new features to the seat sets are being supplied to Maruti for
not only their export model but would also be introduced for their domestic
production shortly. We are also already in advance stage of discussions
with Maruti Udyog Limited for development of new product range.
As regards quality improvement your Company has been awarded the ISO 9002
certification by the assessing authority. As you know, ISO stands for the
International Organization for standardization which currently comprises
the standard bodies of 91 nations. Its function is to develp global
standards in an effort to improve the exchange of goods and services
We are not sitting on the laurels of having obtained ISO 9002 but your
Company wants to start a journey towards total quality management and steps
are being initiated to work for QS 9000 standards which are beyond ISO 9000
and ask for higher level of quality performance. With thes steps, the
Company is going to move towards a culture of total quality management.
Last year the automobile industry grew by 32%. Many new players have either
entered the market or are in the process of entering the Indian market.
With total Quality Management concepts, your Company has better propects of
growth in the near future.
I am very grateful to the members of our Board for their valuable support
and advice which has enabled us to achieve the results and equally to all
the share holders who had all along been providing strength to us to make
the company a success.
I place my thanks to our technical collaborators, M/s Houwa Kogyo Company
Ltd., Japan who have been providing help all throughout.
I am thankful to Suzuki Motor Corporation, Japan and Maruti Udyog Ltd., our
joint promoters and customers for their valuable support and guidance which
contributed greatly to improve our performance.
I am also thankful to our vendors, suppliers, financial institutions i.e.
IFCI, State Bank of Travancore, Bank of Tokyo and Central Government,
Haryana Government and their respective departments for their continuous
Last but not the least, I wish to place on record the very cordial
industrial atmosphere prevailing in our company and thank all employees for
their dedication and sincerity, they remain our major asset and our
performance has been sustained by their commitment to the spirit of
I thank you once again for giving support and attending this meeting.
N. D. RELAN
Place : New Delhi,
Dated : 29th August, 1996.