DENMUR FAX ROLL LIMITED
Your Directors take great pleasure in presenting the Third Annual Report
for the year ended 31 st March, 1995.
Project Details & Future Prospects
The technology for making Thermal Paper is implemented for the first time
in the Country and the Company decided to have a comprehensive trial run.
For this purpose the Company had the Collaborators visit the plant both
before and after the installation of the equipments and subsequently trial
runs after thorough dry run and with inputs, the Company started
production. The Company among other things faced technological deficiencies
due to tropical conditions. The Collaborators help sought to overcome the
problems but adequate support has not been forthcoming. Hence the Company
with its own in-house Research & Development have done suitable
modifications to machineries, changed coating chemistry and redefined paper
specifications to overcome the deficiencies stated above. The Company is in
the process of lodging claim on the Collaborator. In respect of the Pouch
production the Company experienced problems in setting parameters and hence
commercial exploitation could not be achieved. Due to the above and also
due to modifications to be carried out to the machineries it has been
decided to Capitalise expenditure incurred during the year 1994-95 and the
pre-operative expenses of Rs. 705.80 lacs till 31.3.95 is carried forward.
A Statement of Pre-operative expenses is presented. Hence furnishing of
information pertaining to Projections and Performance for the year does not
The Company undertook successfully trial orders to export Fax Rolls during
the year out of the trial production and has received lot of enquiries from
both domestic and overseas markets. The Directors are optimistic about the
During the year Mr. P. Nagaraj has been appointed as Alternate Director to
Mr. Suresh Nagaraj on 12.3.95. Mr. J.H. Kumar, Alternate Director to Mr.
Chandrasekar Venkatraman Vacated office on 24.11.94 and reappointed on
3.12.94 as Alternate Director.
Mr. P.N. Devarajan, Mr. Upendra Ambalal Shah and Mr. Pankaj Madhukar
Tamhane Directors are due to retire under Section 256 of the Companies Act,
1956 and are eligible for reappointment.
The Company has not accepted any deposits from the public.
Conservation of energy
The Company has not commenced any manufacturing activities and particulars
regarding Conservation of Energy are not applicable.
The Company has entered into a Technical Collaboration Agreement with M/s.
Mark Sensing Australia (Pty) Ltd, Australia for the manufacture for
Thermally Coated Sensitive (TCS) Paper for which three instalments have
been remitted and the relevant Technology documents, drawings, etc. have
been obtained from the collaborators. The technology absorption details as
required by Section 217 (1) (e) of the Companies Act, 1956 are given in
Foreign Exchange Earnings & Outgo in 1994-95
The Company has earned through export of Fax Rolls of Rs. 8.56 Lacs out of
trial Production. The Company has incurred an expenditure in foreign
exchange of Rs. 91.08 Lacs towards remittance of Technical Know-how fees
and Rs. 3.50 Lacs for Investors Conference at Dubai.
Particulars of Employees
There are no employees drawing in excess of the limits prescribed under
Section 217 (2A) of the Companies Act, 1956.
Observation made in the Auditors Report are self explanatory and do not
require further clarification. M/s. Krishnan & Co., Chartered Accountants,
retiring auditors, are eligible for re-appointment.
The Directors are thankful to M/s. Mark Sensing Australia (Pty) Ltd.,
Australia, Industrial Development Bank of India, Indian Bank, Bank of
Baroda, Punjab National Bank, Ind Bank Merchant Banking services Ltd,
Government of India, Government of Tamil Nadu and State Industries
Promotion Corporation of Tamilnadu Ltd., for their support during the year.
The Directors also place on record their appreciation of the good work done
by the employees during the year under report and look forward to their
sustained cooperation in the years to come.
ANNEXURES OF THE REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31.3.95
I. Particulars required under the Companies (Disclosure of Particulars in
the Report of Board of Directors) Rules 1988.
A. Conservation of Energy: Since the Company has not commenced operations
this is not applicable.
B. Foreign Collaboration / Technology absorption: Efforts made in
technology absorption as per from - B enclosed.
Form - B
Disclosure of particulars with respect of Technology Absorption
Research and Development
1. Specific areas in which R & D carried out by the Company:
Product Development, Improvement in Quality, Process & System improvement.
2. Benefits derived out of above:
Reorientation of Control, system to meet the product specifications.
3. Future plan of action:
To strengthen R & D, develop newer range of thermal products and usage of
4. Expenditure on R & D:
No specific expenditure has been incurred during the year 1994-95.
Technology Absorption, Adaptation and Innovation
1. Efforts in brief made towards Technology Absorption, Adaptation and
The Technology documents relating to the manufacture of Thermal Sensitive
Paper, Labels and product thereof, drawings, document etc. have been
transferred by the collaboration. The Company through its in-house R & D
upgraded and changed the Paper specifications, Coating Chemistry and done
major equipment changes to standardise the product.
2. Benefits derived out of the above:
The project is yet to commence commercial production. Hence benefit not
3. Particulars of technologies imported during the last 5 years:
i. Name of the Collaborator:
M/s. Mark Sensing Australia Pty. Ltd., Australia.
ii. Name of the Products being manufactured by the Company under Foreign
Thermal Sensitive Paper, Labels and product thereof.
iii. Nature of Agreement/Foreign Collaboration/Financial-cum-
Technology Transfer Licensing Agreement. (Exclusive License Agreement).
iv. Year of import/absorption : 1993.
v. Status of Implementation:
The physical implementation of the Project essentially implemented and has
overcome deficiencies in Paper Specifications, Coating Chemistry and
Equipment design through its in-house R & D efforts.
For and on behalf of the Board
Place : Madras,
Date : 27th October, 1995.