CHAIN IMPEX LIMITED
ANNUAL REPORT 2001-2002
The Directors presented to the members the Annual Report together with the
Statement of Accounts of the Company for the year ended 31st March 2002 and
the Auditor's Reports thereon
During the period under review, the economic activities in the Country
slowed down to a state of stagnancy. Marked fall in the scale of operations
of industries consuming the products of your Company caused reduction of
orders placed on your Company, resulting in lower capacity utilisation and
substantial fall in Production and turnover. Secondly, the price of
indigenous coal fixed by the Government continues to be high resulting in
increase in the cost of production. In a highly competitive market
situation, your Company is unable to pass on adverse impact on the cost of
production to the customer and is forced to absorb the impact to a large
extent causing erosion of margin, Thirdly; taking advantage of the
Government's policy of import liberalisation several Countries are dumping
Coal & Coke at cheaper rate. Your Company is faced with stiff and uneven
competition from the imported Coal & Coke. The cumulative effect of all
these factors has taken a heavy toll on the profit of the Company.
FINANACE & MANAGEMENT
As a part of its prudent resource management, the Company has not availed
of the loan facility of Rs.90 lacs sanctioned by the Bihar State Credit &
Investment Corporation Ltd., and thus has not incurred any interest
charges. The Company also exercised strict cost control in all areas.
As a part of the poor trading results of the Company during the year under
review your Directors are of the view that it would not be prudent to
recommend any dividend for the year ended 31st March, 2002.
PUBLIC ISSUE OF EQUITY SHARES
Calls receivable as on 31st Match, 2002 remained unchanged at Rs.
Your Directors fervently hope that in the near future the economic and
industrial situation in the country will improve and the government will
take suitable policy for distribution, pricing and protection for supply of
indigenous coal which will benefit your companies operations.
During the year tinder report, the company has not accepted any fixed
deposits under the Companies (Acceptance of Deposits) Rules, 1975 from the
shareholders and the public. As on the date of this report, there is,
therefore, no matured and/or unclaimed deposits.
PARTICULARS OF EMPLOYEES
There are no employees in respect of whom particulars are required to be
furnished under section 217(2A) of the Companies Act, 1956, and the rules
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
A statement giving information regarding conservation of energy, technology
absorption and foreign exchange earnings and outgo, as required under
section 217(1)(c) of the Companies Act, 1956 is annexed hereto and forms
part of this Report.
DIRECTORS RESPONSIBILITY STATEMENT
Your Directors Confirm :
(i) that in the preparation of annual accounts, applicable Accounting
Standards have been followed
(ii) that the Directors have selected such accounting policies and applied
them consistently and made judgements and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of the
company at the end of the financial year and of' the profit of the company
for that period.
(iii) that the Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956, for safeguarding the assets of the
company and for preventing and detecting fraud and other irregularities;
(iv) that the Directors have prepared the annual accounts on a going
The term of office of the companies Auditors, R. K. Patnia & Co., Chartered
Accountants, 1st Floor, Rathore Mansion, Bank More, Dhanbad - 826 001,
will expire at the conclusion of the ensuing Annual General Meeting and
they, being eligible offer themselves lot re-appointment. They have
furnished a certificate to the effect that the proposed re-appointment, if
made, will be in accordance with section 224 (1B) of the Act.
Your Directors are pleased to place on record their thanks to the companies
shareholders, Customers, bankers arld all other benefactors of the company.
Your Directors also wish to place on record their appreciation for the
devoted service rendered by the employees of the company.
Place Kolkata BY ORDER OF THE BOARD
Dated The 22nd day of July, 2002. J.N. GUPTA S.N. SHARMA
ANNEXURE TO DIRECTORS' REPORT
INFORMATION UNDER SEC.217(1)(e) OF THE COMPANIES ACT, 1956 READ WITH
COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS)
RULE 1988, FORMING PART OF THE DIRECTORS REPORT FOR THE YEAR ENDED 31st
(A) CONSERVATION OF ENERGY
(a) Energy conservation measures taken : The Coal Washery Plant has been in
operation since 8th November 1994. But due to inadequate and irregular
supply of coal, it has not so far been possible to operate at its optimum
capacity. Measures for energy conservation will be taken when the Washery
will operate at the optimum capacity. The Company does not envisage any
measure to be taken at this stage.
(b) Additional investment & Proposals, if any, being implemented for
reduction of consumption of energy: Further investment at present not
(c) Impact of the measures at (a) & (b) above for reduction of energy
consumption and consequent impact on the cost of production of the goods :
The measures required, if any, will be considered in due course of time and
efforts for reduction of energy consumption and cost of production will be
(d) Total energy consumption and energy consumption per unit of production
as per Form A : Not applicable as the company is not a specified industry a
(B) TECHNOLOGY ABSORPTION
1. (i) RESEARCH AND DEVELOPMENT: The company is continuously engaged in R&D
activities and taking all care and steps to see that there is minimum
wastage of raw materials and power, for protecting the environment
(ii) TECHNOLOGY ABSORPTION, ADOPTION & INNOVATION :
The latest technology has been / is being adopted in various ways for
improving productivity and product quality and reducing the consumption of
scarce raw materials and energy.
2. The Company has set up facilities for the manufacture of Washed Coal
based on latest non polluting technology from Derek Parnaby Cyclones
International Ltd., U.K. it has multifarious advantages. The technology has
been adopted and absorbed in the process of manufacturing Washed Coal.
(C) FOREIGN EXCHANGE EARNINGS & OUTGO
The information on foreign exchange earnings & outgo : NIL