GTCL MOBILE COM TECHNOLOGY LIMITED
ANNUAL REPORT 2002-2003
GTCL MOBILE COM TECHNOLOGY LIMITED
Your Directors have pleasure in presenting their Ninth Annual Report
together with the Audited Statements of Accounts, for the year ended 30th
(Rs In Lacs)
PARTICULARS Year Year
Gross Total Income 1461.38 5240.62
Profit Before interest. (345.64) 349.94
Depreciation & Tax
Less: Interest 37.69 749.42
Profit after Interest but (383.33) (399.48)
before Depreciation and Tax
Less: Depreciation 126.61 120.82
Profit / (Loss) before Tax (503.94) (520.36)
Profit /(Loss) after Tax (563.94) (520.36)
Surplus carried forward (2284.45) (1763.91)
from the Previous year
Less Prior Period (487.14) (0.24)
Balance Carried to
Balance Sheet (2301.25) (2284.45)
OPERATIONS AND FUTURE OUTLOOK
During the year under review, your Company was able to achieve a turnover
of Rs.1392.62 Lacs as compared to Rs. 5137.44 achieved during the previous
year. The Income during the year has come down to Rs. 1461.38 as compared
to Rs. 5240.62 during the previous year. The decline it the Turnover and
income is mainly cue to the steep decline in the prices of Jelly Filled
Cables not limited to your Company alone, but also covered the industry
itself. With a view to offset the effect of the falling prices, your
Company has embarked upon A Major Cost cutting Exercise in the entire
operations of the Company.
Further, your Company is also exploring the possibility of diversifying in
outer areas, with the opening up of the Telecom Sector, the number of
players has increased to a great extent This throws open various
opportunities as well as challenges to the Company. The Company is aware of
the said fact of dwindling demand of the PIJF Cables and taking into
consideration the existing state-of-the art manufacturing facilities which
is coupled with quality manpower, the Company has identified and developed
a wide range of electrical and specialised communication cables and the
Company is making vigorous efforts to cater the market thereof.
Shri Ramjibhai H. Patel, Director of the Company retires by rotation at the
ensuing Annual General Meeting and being eligible, offer himself for
M/s Doctor & Patel Chartered Accountants, hold Office till the conclusion
of the ensuing Annual General Meeting and are eligible for reappointment.
The Auditors Report, the observation of the Auditors read In conjunction
with the Notes on accounts are self explanatory.
DIRECTORS' RESPONSIBILITY STATEMENT AS REQUIRED UNDER SECTION 217 (2AA) OF
THE COMPANIES ACT, 1956:
The Directors confirm that
(1) in the preparation of the annual accounts, the applicable accounting
standards have been followed along with proper explanation relating
(ii) appropriate accounting policies have been selected and applied
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 or loan of the
Company for that period;
(iii) That the Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities ;
(iv) That the directors had prepared the annual accounts on a going concern
Pursuant to Clause 49 of the Listing Agreement with the Stock Exchanges,
Management Discussion and Analysis, Corporate Governance Report and
Auditors Certificate regarding compliance of Corporate Governance are made
a part of the Annual Report.
PARTICULARS OF EMPLOYEES
There are no Employees who are covered as per the Provisions of Section 217
(2A) of the Companies (Particulars of Employees) Rules, 1975.
COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF "THE BOARD OF
DIRECTORS) RULES, 1998:
in terms of the above rules, the Board is pleased to give the particulars
as proscribed therein in the annexure which forms part of this report.
Your Directors are grateful for the assistance and co-operation received
from the Financial Institutions, Banks. and Employees of the Company.
For and on behalf of the Board
Place: Ahmedabad R. H. PATEL
Date : 29th November, 2003 CHAIRMAN
COMPANIES ( DISCLOSURE OF PARTICULAR& IN THE REPORT OF THE BOARD OF
DIRECTORS) RULES, 1988.
A) CONSERVATION OF ENERGY
As in the past, the company continued its efforts to improve methods of
energy conservation and utilisation.
(b) TECHNOLOGY ABSORPTION RESEARCH AND DEVELOPMENT (R & D)
RESEARCH AND DEVELOPMENT ( R & D)
1. Specific Areas in which R & D : Process Improvement, Product
carried out try the Company. Improvement & Cost effectiveness.
2. Benefits derived as a result of : Reduction in cost of Production &
above R & D Improvement it quality &
3. Future Plan of Action : Efforts will continue to be made in
the areas of cost reduction and
product and process improvement
4. Expenditure on R & D : R & D Expenditure has not been
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION
1) Efforts in Brief toward : The Company has successfully
technology absorption absorbed the to manufacture all
adaptation and innovation types and sizes of PIJF Telephone
Cables and efforts are continuously
on to upgrade the same with
innovation in design, process
controls and logistics.
2) Benefits derived as a result : Cost has been reduced where ever
of the above efforts. possible.
(C) FOREIGN EXCHANGE EARNINGS AND OUTGO
Total Foreign Exchange earned : Rs. Nil
Total Foreign Exchange Outgo : Rs. Nil
For and on behalf of the Board
Place: AHMEDABAD R.H. PATEL
Date : 29-11-2003 CHAIRMAN
MANAGEMENT DISCUSSIONS AND ANALYSIS
The Company is in the business of manufacture and safe of Jelly Filled
Jelly Filled Telephone Cables ware introduced by the erstwhile Department
of Telecommunications (DOT) to substitute paper covered unfilled cables in
order to solve the problem of water seepage in Telecom Cables resulting in
distortion of signals. The Telecom Industry in India form part of the
priority sector of the Industrial Policy of the Government of India and a
total outlay of As.40000 Crores have been planned for this sector in the
8th Five year plant. Bharat Sanchar Nigam Limited (BSNL), part of erstwhile
Department of Telecommunications (DOT) and Mahanagar Telecom Nigam Limited
(MTNL) are the major purchasers of the cables accounting for more than 80%
of the domestic consumption, other users include railways, defence and
other private sector telecom service providers, At present there are 48
PIJF Cable Manufacturers in India, which has resulted in the increase in
competition and pressure on the prices of the cables. The year under review
was a difficult year for the Telecom Industry due to steep decline in the
prices and increased competition
1) Lower demand resulting into lower sales volume of Jelly Filled Cables.
2) Steep fall of about 15 % in the cable prices.
The turnover of the Company has come down to Rs. 1392.62 from Rs. 5137.44
achieved during the previous year on account of the reasons mentioned
OPPORTUNITIES AND THREATS:
With the Telecom Industry being part of Priority vector, the Government of
India has ambitious plans carved out for the Industry in its Eighth Five-
year , plan. Gujarat Telephone Cables Limited, with its huge manufacturing
capacity and being one of the major players of the Industry, is in a better
position to reap the fruits of the same.
The Telecom Cables Industry depends on the Bharat Sanchar Nigam Limited
(BSNL) and Mahanagar Telephone Nigam Limited (MTNL). During the year BSNL
has floated the tender for a quantity which its less by about 50 % of the
Tender for the previous year, This reduction is mainly due to Increased use
of wire Less in Local Loop (WLL) technology by BSNL and MTNL and other
private operators. This is in addition to the increased competition from
the existing as wall as new entrants in the Industry. Order are being
accepted by the competitors at the rate below the variable cost. The
Company is taking steps, to offset the implications of this by undertaking
major cost cutting exercise.
INTERNAL CONTROL SYSTEMS:
The Company has proper arid adequate Internal Control System, which ensures
the proper authorization , recording and reporting of all the transactions
and safeguard of all assets from the risk of toss due to unauthorised use
and disposition. The in place internal control system ensures prompt
financial reporting, optimum utilisation of various resources and quick
reporting of deviations. Compliance with laws and regulations is also
ensured and confirmed and is reported In every Board Meeting.
The Company has fully computerised and Integrated various financial and
accounting functions, information feed back system of process parameters
and back tracing from finished goods to raw-material stage.
All financial, operating and information technology systems are reviewed
from time to time by the Management.
INDUSTRIAL RELATIONS AND HUMAN RESOURCES
The biggest of any Company is its committed staff and work force, and your
Company sees its relationship with its employees as vary critical to the
existence of the Company. The Company has a proper mix of experienced and
youth among its employees. The Company is committed to provide the
necessary training and opportunity to Its employees, which helps them to
develop themselves to face the future challenges.
The company's relations with the employees At all levels are vary cordial