Gujarat Filaments Limited
The Directors hereby submit the Seventeenth Annual Report for the year
ended 31 st March 1998.
In view of losses, directors do not recommend any dividend.
2. YEAR IN RETROSPECT
The sales during the year had declined from Rs. 1249.00 Lacs to Rs. 1129.62
Lacs mainly due to stoppage of production and sales of Cement Unit during
the year on account of its unviability. The Company has incurred a loss of
Rs. 355.35 Lacs as compared to Rs. 346.18 Lacs during the previous year.
This was due to reduction in sales realisation for yarn unit and uneconomic
operations of Cement Unit.
3. CURRENT SCENARIO
The Sales of Yarn during April, 98 to October, 98 have amounted to Rs.
470.78. Cement Unit has not registered any sales.
Cement plant has been facing problem of low margins and inadequency of
working capital since last couple of years and the production had been
greatly affected due to the same. The operations of the Cement Division of
the Company therefore have been suspended in pursuance of the Resolution
passed by the Board at its meeting held on 25.9.97. In order to revive the
Company, Financial Institutions viz. ICICI & IFCI have been requested to
grant rebates & concessions in interest & loan.
4. SUBSIDIARY COMPANY
The annual report together with the audited accounts of M/s.Samrat Trading
& Investments Ltd., a subsidiary company for the period ended March 31,1998
are annexed hereto in terms of Section 212 of the ComPanies Act,1956.
5. FORFEITURE OF SHARES
Since the last report, the Company has on 25.9.97 further forfeited 31996
Equity Shares issued to 56 Debenture Allottees for non-payment of Calls in
Arrears amounting to Rs. 2,51,625/- together with interest for delayed
payment, and on 26.3.98 further forfeited 8581 Equity Shares issued to 17
Debenture Allottees for non-payment of Calls in Arrears amounting to Rs.
69,125/- together with interest for delayed payment.
The forfeited shares have not yet been reallotted due to adverse stock
Shri D.N. Chaturvedi, Chairman of the Company will retire at the ensuing
Annual General Meeting and being eligible offers himself for reappointment.
Shri K.N. Misra, Director of the Company will retire at the ensuing Annual
General Meeting$ and being eligible offers himself for reappointment.
Dr. V.P. Singh who was appointed as an additional Director with effect from
15.1.98 will hold office till the conclusion,n of this Annual General
Meeting and being eligible offers himself for reappointment.
Dr. V.P. Singh was also appointed by the Board as Executive Director of the
Company on non rotational basis subject to the approval of the shareholders
in the ensuing Annual General Meeting of the Company.
Shri K.K. Baheti, Managing Director of the Company resigned from the
Membership of the Board and accordingly ceased to be the Managing Director
of the Company with effect from 31st March, 1998. The Board places its
appreciation for the service~ rendered by Shri. K.K. Baheti to the company.
7. AUDITORS' REPORT
The observations made in the Auditors' Report are self-explanatory and
therefore do not call for any further comments Under Section 217 of the
M/s. M.M.Chaturvedi & Co. Chartered Accountants, the Company's Auditors
will retire at the conclusion of the ensuing Annual General Meeting and are
eligible for reappointment. You are requested to consider their
reappointment at a remuneration to be decided by the Board of Directors.
M/s. Rajiv Bansal & Associates, Chartered Accountant, 303, Sarvpriya,
66/2253 Gurudwara Road, Karolbaug, New Delhi - 110 005 has shown his
unwillingness to be the branch auditor for the Cement Division of the
Company for any further term. Since the operation of,the Cement Division
are stopped, it is not required to appoint any Branch Auditor.
Information as per section 217(2A) of the Companies Act 1956 read with
Companies (Particulars of Employees) Rules 1975 is given in "Annexure 1
forming part of this report.
10 CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS
Information as per Section 217 (1)(e) of the Companies Act, 1956 read with
Companies (Disclosure of Particulars in the Report of Board of Directors)
Rules,1988, has been given in the "Annexure ll" forming part of this
The Directors wish to place on record their appreciation for the co-
operation and support extended by Financial Institutions and Bankers,
Investors, Suppliers, Customers, Employees and the Shareholders to the
For and on behalf of Board of Directors
Place: Bombay D.N. CHATURVEDI
Date : 28th November, 1998 Chairman
"ANNEXURE ll" TO DIRECTORS' REPORT
PARTICULARS UNDER "The Companies (Disclosure of particulars in the Report
of Board of Directors) Rules 1988."
(A) CONSERVATION OF ENERGY
1. ENERGY CONSERVATION MEASURES TAKEN.
i) One pump used for finish circulation instead of four pumps.
ii) To reduce the energy consumption at Cooling Tower, the existing Motor
of 10 H.P. has been replaced by 3 to 5 H.P. Motors.
2. ADDITIONAL INVESTMENTS AND PROPOSALS, IF ANY, BEING IMPLEMENTED FOR
REDUCTION OF CONSUMPTION OF ENERGY.
(i) The detailed energy audit is planned to be carried out.
(ii) Installation of 750KVA D.G.set for running full plant on D.G.Set is
planned for continuous supply and cost saving.
(iii) It is planned to replace high H.P. Motor of Twisting Machine to low
H.P. Motor to save the energy.
(iv) Insulation of heating system is planned to be provided to reduce the
3. IMPACT OF MEASURES 1 & 2 FOR REDUCTION OF ENERGY CONSUMPTION AND
CONSEQUENT IMPACT ON THE COST OF PRODUCTION OF GOODS.
Saving in electrical bill & consumption of electricity per unit of
4. (A) TOTAL ENERGY CONSUMPTION AND ENERGY CONSUMPTION PER UNIT OF
Information is given in Form - A annexed herewith.
(B) TECHNOLOGY ABSORPTION
Efforts made in technology absorption are given in prescribed Form - B
(C) FOREIGN EXCHANGE EARNINGS AND OUT-GO
1.Activities relating to export : No Exports have been made during the year
2. Foreign Exchange Earnings : NIL
3. Foreign Exchange Out-go : Rs. 5,68,575/-