CHOKSI TUBE COMPANY LIMITED
ANNUAL REPORT 2001-2002
1. Your Directors present their Thirty Ninth Annual Report together with
the Audited Accounts of your Company for the year ended 31st March, 2002.
(a) The Directors recommend for your approval, payment of dividend on 14%
Redeemable Preference Shares of Rs.500 Lacs (inclusive of Rs.150 lacs not
redeemed during the year) issued to Industrial Development Bank of India on
Private Placement Basis.
(b) The Directors have decided not to recommend any dividend on equity
shares for the year with a view to conserve the resources for future
3. REVIEW OF PREVIOUS YEAR'S OPERATIONS
(a) Overall project activity in the domestic sector continued to remain
relatively low. The energy sector, however continues to remain as a
potential user of the Company's product. The company's Motibhoyan plant was
evaluated for approval for supply of high pressure long length feed water
heater tubes for 250 MW+ power stations in India and the results are
expected to be favourable. The Company has also been approached for supply
of instrumentation tubes in the domestic sector for high critical
industries and we are hopeful that this approval will also come through. On
the export front, the markets continue to remain relatively active and the
Company was able to develop newer customers in various European markets as
well as in the United States.
(b) The Company's Wind Mills at Navadra Bhogat Near Porbandar produced
35.62 lac units of power with an overall productivity of 25% compared to
the normal standards of other mills of 14-15%. The Company was able to
convince the local power authorities to permit allocation of its wind mill
power for both the Vatva as well as Motibhoyan plants. This was warranted
due to excess power being produced by the wind mill as well as
implementation of energy saving measures in the Company's two plants.
4. CURRENT YEAR'S OPERATIONS AND LONG TERM OUTLOOK
Since April `02, the activities in the domestic market for petroleum and
power sector have started picking up with the Company booking a large order
for over Rs.4 crores for supply of tubes ultimately destined for a
petroleum refining project. On the export front, the imposition of anti-
dumping duties on the Japanese mills for the US market is expected to
enable the company to increase its share of exports to that region.
However, the entirely unexpected and unwarranted civil disturbances in
Gujarat in the first quarter of the new accounting year created problems in
the functioning of the company's Primary plant at Motibhoyan. This has
resulted in the first quarter operations being unsatisfactory and it is
expected that the overall expected improvement in the economic activity
will make amends for the shortfall.
The Gujarat Government has announced the new wind mill policy which however
is made applicable from 20.6.2002 only and that too for the wind mills
installed henceforth. The Company has represented alongwith the Wind Mill
Association of India to the Gujarat Energy Regulatory Commission for
reinstating the changes in the wheeling power to all existing wind mill
users also as per the norms set by the new wind mill policy.
Shri Himanshu H Choksi and Shri Mahipendra Singh, Directors of your Company
are retiring by rotation and being eligible, offer themselves for re-
Deposits of Rs.3.42 Lacs due for repayment on or before 31st March, 2002
were not claimed by 30 depositors as on that date. Of these, deposits
amounting to Rs.1.35 Lacs of 5 depositors have since been paid.
7. AUDITOR'S REPORT
With regard to Qualifications contained in Para No. 5.6 of the Auditor's
Report, your attention is drawn to Note Nos.8 to 10 & 13 of Schedule 17B
Notes to the Accounts, which are self explanatory.
Relations with the employees were cordial throughout the year.
9. PARTICULARS OF EMPLOYEES
As none, of the employees of the Company, during the year/part of the year,
were, in receipt of remuneration in excess of limit specified under
provisions of Section 217(2A) of the Companies Act, 1956 read with
Companies (Particulars of Employees) Rules, 2,000 no details have been
M/s. M.A. Parikh & Company, Chartered Accountants, Mumbai are the retiring
Auditors. The said Auditors have furnished a certificate that if re-
appointed, their appointment shall be within the limits prescribed under
Section 224 (1-B) of the Companies Act, 1956. You are requested to re-
appoint them and fix their remuneration.
Form of disclosure of particulars with respect to conservation of energy.
A. CONSERVATION OF ENERGY
The Company has installed a brand new bright annealing furnace in the HXTD
plant which has unique design features intended to reduce the energy cost
for producing heat exchanger tubes.
B. TECHNOLOGY ABSORPTION
1. Specific areas in which R & D carried out by the Company.
(a) Development of Stainless Steel Instrumentation Tubes in continuous
(b) Alternative methods of Bright Annealing Furnace.
2. Benefits derived as a result of the above R & D
(a) Improvement in yield.
(b) Improvement in productivity.
3. Future plan of action
To continue the efforts as in 1.
4. Expenditure on R & D
R & D expenses are not substantial and hence not accounted separately.
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION
1. Efforts in brief, towards technology absorption, adoption and
Company has successfully utilized inhouse technology to design a high speed
cold pilger mill which has commenced production in its new Plant at Moti
2. Benefits derived as a result of above efforts e.g. product improvements,
cost reduction, product development, import substitution etc. :
With the development of this technology, it is possible for the Company to
make long length heat exchanger tubes at high speeds which results in
improved productivity and better yield.
3. In case of imported technology (imported during last 5 years reckoned
from the beginning of the financial year) following information may be
(a) Technology imported -
(b) Year of import -
(c) Has technology been fully absorbed -
(d) If not absorbed, areas where this has not
taken place, reason thereof and future,
plans of action -