ANNUAL REPORT 1998-99
HILTON RUBBER LIMITED
TO THE MEMBERS,
Your Directors have pleasure in presenting their Twenty Sixth Annual Report
and Audited Accounts of the Company for the year ended 31 st March, 1999.
The Gross Sales for the year were is.2115.32 Lacs against Rs.2828.18 lacs
in the previous year.
REVIEW OF OPERATIONS
Production of conveyor belting througnout the year remained low due to
adverse market conditions. The Company had invested heavy amount in Unit IV
with an expectation that it will become a major player for supply of
conveyor belts in new projects. However due to political instability in the
country, many infrastructure projects having been shelved, the market
remain depressed. Also the company sufferad serious liquidity crunch
because of non- receipt/delayed receipt of sales amount from cash starved
public sector companies like Steel, Cement, Mines, State Electricity 130ard
etc. Further because of stay order passed by the Honorable Delhi High Court
on 17th Sept. 1998, the Company could not hold any meeting of the Board
and therefore could not pass any resolution for arranging working capital
The Company reduced its manpower to cut down its fixed expenses but even
after taking such a drastic step, the company continued to incur its
unproductive fixed expenses coupled with mounting interests.
The Company has become sick and it was decided by the Board of Directors in
their discretion to refer it to BIFR.
1. Mr. Deepak Sahay who was appointed as an additional Director of the
company w.e.f March 27th 1998 had submitted his resignation on Dec. 1.
1938. As there was stay of Board meetings, the same could be accepted only
on 29th Sept. 1999 when the Board was re-constituted in terms of order
passed by the Hon'ble Delhi High Court, Delhi on 27th Aug. 1998.
2. Mr Sanjay .S.Kilachand who was managing Director has resigned from the
Board as Chairman & Managing Director as well as Director w.e.f 31st
3. Mr C.B.Sharma who was Executive Director has resigned from the post of
Executive Director as well Director w.e.f 30th September,1999.
4. Mr N.S.Sharma has been re-appointed as Chairman & Whole time Director of
the Company w.e.f. Sept 29,1999.
5. Mr. S, R. Kasliwal was appointed as Additional Director of the Company
w. e. f 29th September, 1999 and he was further appointed Managing Director
w.e.f. 29th September, 1999
In view of losses during the year. the Directors are unable to recommend
The Company has accepted /renewed deposits upto 30th September,1998 during
the year from Public, Shareholders & Employees. And after 30th
September,1998 has not accepted or renewed any deposit.
M/s. S Prashad & Co., Chartered Accountants retire at the ensuing Annual
General Meeting and are recommended for reappointment. A certificate has
been received to this effect that their reappointment, if made, will be in
conformity with the provisions of Section 224 (1) of the Companies Act,
As regards qualifications in Auditors Report the amount due towards
Provident Fund, Employee State Insurance, Income Tax and Tax deducted at
Source could not be deposited with appropriate authorities due to cash
crunch in the Company. The over due amount of Fixed deposit of Rs.138.59
Lacs includes an amount of Rs. 120.68 lacs of promoters. The remaining
payable amount towards fixed deposits amounting to Rs. 17.91 Lacs could not
be paid due to cash crunch.
DISCLOSURE OF PARTICULARS
Information as per the Companies (Disclosure of Particulars in the Report
of Board of Directors) Rules, 1988 relating to conservation of energy,
technology absorption, foreign exchange earnings and outgo are given in
Annexure forming part of this report.
Information as per Section 217 (2A) of the Companies Act. 1956 read with
Companies (Particulars of Employees) Rules 1975, as amended, is given in
Annexure forming part of this report.
The only computerised operations of the Company are in the field of
Accounts and Book-keeping The Efforts are on to comply with theY2K
The Board places on record its gratitude to the Government Authorities,
Financial Institutions, eankers and Investing Public for their continued
support, co-operation and confidence in the Company.
The Board also places on record its appreciation of the valuable services
rendered by all the employees of the Company
For and on behalf of
Place: New Delhi
Date : September29,1999.
ANNEXURE TO DIRECTORIES REPORT
Information as per Section 217 (1 ) (a) of the Companies Act, 1956 read
with Companies (Disclosure of particulars in the Report of Board of
Directors) Rules, 1988 and forming part of the Directors Report for the
year ended 31 st March. 1995
1) CONSERVATION OF ENERGY:
i. New State - of - the - Art Oil Fired Boiler has been installed and
commissioned. This boiler has a efficiency of 88% as against 60% of the old
coal fired steam boiler.
ii. Further experiments are being carried out to reduce operation Cycle
Time of the Presses and Intermix by improved methods, procedures and
iii. Separate cell has been created for monitoring wastage and loss of
utilities on day-to-day basis, which has resulted In reduction of wastage
and loss of utilities.
2) TECHNOLOGY ABSORPTION
Research & Development (R&D) :-
a) Specific area in which R&D is carned out by the Company: Fire Resistant
Conveyor Belt with High Abrasion has been developed and its commerclal
production has started. R81D work is also under progress for OR -HR (Oil
Resistance + Heat Resistance) and FR-HR (Fire Resistant + Heat Resistant )
b) Benefits derived as a result of above R&D :- Having developed our own
special compounds for Fire Resistant Belts with high abrasion Resistant,
Hilton is able to cater to the needs of important domestic and export
c) Future Plan of Action :-
R&D work is in further progress to develop compounds at reduced cost
without making any compromise on quality of Conveyor belts.
3) TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION
Technology received from M/s. Trellex AB, Sweden has been fully absorbed
and adopted for Manufacturing Rubber Sheets for export market.
4) FOREIGN EXCHANGE EARNINGS AND OUTGO
(A) Activities relating to exports, initiatives taken to increase export,
development of new export markets for products and services plans:
Visits are being made by companys personnel to develop new export markets
from time to time and export possibilities are being explored.
(B) Total foreign exchange used and earned
Rs 274.78 lacs Rs 156.34 lacs
For and on behalf of the
Place: New Delhi
Date : 29th September,1999.