ANNUAL REPORT 1999-2000
DATAR SWITCHGEAR LIMITED
Your Company was awarded a major contract from Maharashtra State
Electricity Board for manufacture installation and commissioning of
L.T.Load Management System on 27th March 1997. The same was partly
executed by the company upto December 1998.
The contract is now in dispute and company has invoked Arbitration Clause.
The company has been adviced that it has a STRONG CASE on Merits and in
Due to the above circumstances company s Cash Flow planning collapsed and
has affected payments of interest and principle to Financial Institutions
Banks and other Financial and also loss of substantial business
The Directors of the company have abstained from claiming any Salary or
Bonus or Dividend due to this reason during the financial year as a token
of their commitment.
No Dividend is recommended in view of losses suffered by the Company during
the financial year.
In view of losses during the financial year Company has not made any
provision for Income Tax.
HUMAN RELATIONS IN THE COMPANY-
The Company sincerely acknowledges the outstanding contribution from all
its members. Various schemes of mutual benefit have been initiated and
implemented during the year.
(A) Mr. Kamlesh Morarji and Mr. M.G,Varade retire by rotation and being
eligible offer themselves for re-appointment.
(B) Mr. S. Ramlingam is appointed as Nominee Director of Industrial
Investment Bank of India in place of Mr. D.P.Chakraborty w.e.f. 24th
November 2000 by the said Financial Institution.
QUALIFICATIONS IN AUDITORS REPORT
1. Now the LTLMS Project is no more under implementation the amount of Rs.
24.98 Crores, on account of interest paid, has been debited to Profit and
Loss Account and unpaid lease rent and hire purchase rent of Rs.21.66
Crores has been Capitalised.
2. Since the matter is subjudice, the accumulated Capitalised balance of
Rs.123.71 Crores has not been considered while preparing current year's
Profit and Loss Account
REPORT UNDER SECTION 217 (2A)
Particulars of employees as required under section 217 (2A) of the
Companies Act,1956 read with the Companies (Particulars of Employees)
Rules,1975 are annexed.
REPORT UNDER SECTION 217 (1) (e)
Information pursuant to Section 217 (1 ) (e) of the Companies Act ,1956
read with the Companies (Disclosure of Particulars in the Report of Board
of Directors) Rules 1988, is given in the ANNEXURE to the report.
The Auditors, M/s. S.J.Mene & Co. Retire at the conclusion of this Annual
General Meeting and being eligible, offer themselves for re-appointment.
Your Directors wish to place on record their appreciation for the valuable
co-operation received by the Company from its Bankers and Financial
On Behalf of the Board of Directors
Chairman and Managing Director
Datar Apartments,Commercial Complex,
Vakilwadi, Nasik - 422 001
Nashik 29th November 2000
ANNEXURE 'A' TO DIRECTORS' REPORT
Additional information as required under the Companies (Disclosure of
Particulars in the Report of Board of Directors) Rule, 1988.
A. Conservation of Energy:
The Company is not an energy intensive unit and therefore the costs of
energy do not form a substantial part of the manufacturing costs. Every
care is taken to avoid the wastage of electricity.
B. Technology Absorption:
1 ) Research and Development
(a) Development of Amorphous Magnetic Materials.
(b) Optimization of Plastic Parameters.
2) Benefits derived as a result of this R & D -
(a) Cost Savings
(b) Lesser toxic waste
(c) Higher- reliability of products
3) Future Plans
The focus for the next year is on utilization of existing technologies and
expansion of the product range.
4) Expenditure on R & D
The expenditure on R & D during the financial year 1999-2000 was
Technology absorption, adaptation and innovation:
In brief, the efforts made towards technology absorption, adaptation and
innovation have been:
(a) Improvement in product design
(b) Improvement in processes
(c) Introduction of advanced quality monitoring schemes
C. Foreign Exchange Earning & Outgo:
Total Foreign Exchange Earnings Rs.44.77 lacs
Total Foreign Exchange Outgo Rs.85.10 lacs
Raw Material Import Rs.85.10 lacs
Machinery Import NIL