HITECHI JEWELLERY INDUSTRIES LIMITED
ANNUAL REPORT 2000-2001
Hitechi Jewellery Industries Limited
Your Directors have pleasure in placing before you the 9th Annual Report
together with the Audited Statement of Accounts for the year ended 31st
During the year under review your Company achieved a turnover of Rs.5969.44
lacs representing an increase of 14.76 percent over Rs.5197.22 lacs in the
previous financial year 1999-00. Despite the growth in the company's
turnover, the overall gross margin, however, continued to be constrained,
as a result of substantial production activities of the Company being
confined to plating / assembling operations of outsourced semi-finished /
finished items wherein the margins are lower. The continued working capital
constraints faced by the company inevitably lead to the company focusing on
plating / assembling operations as mentioned above. A significant
achievement has been the company's ability to successfully operate the EOU
manufacturing unit located at bhayandar which significantly contributed to
company's overall profitability during the year. The net profit during the
year stood at Rs.42.56 lacs as against Rs.109.70 lass achieved in the
previous financial year 1999-2000.
In view of the reduced profitability and with a view to conserve the
resources of the company, your Directors do not recommend payment of any
dividend on equity shares for the financial year 2000-2001.
As mentioned earlier, the Company has been successfully operating the EOU
which has a good profit potential. The domestic market has become extremely
competitive following ever changing tastes and preferences of the consumer
which have had its impact on the profit margins. Your company in the long
run focuses to enhance its export operations, which market seems to be
extremely lucrative both on the price as well as the volume front. Your
company does look forward to achieving much better performance on the back
of enhanced exports in coming years.
In accordance with the requirements of the Companies Act, 1956 and Articles
of Association of the Company, Mr. S. N. Patadia, Mr. J. T. Ranpara and
Mrs. G. B. Mehta retires by rotation and being eligible offer themselves
Mr. Azhar Patrawala has since resigned from the Directorship of the
Company. Your Directors place on record its appreciation of the valuable
services rendered by Mr. Azhar Patrawala during his tenure as Director on
the Company's Board.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to section 217 (2AA) of the Companies (Amendment ) Act, 2000 the
i) That in the preparation of the Annual Accounts, applicable accounting
standards have been followed alongwith proper explanation relating to
ii) That the Directors have selected such accounting policies and applied
them consistently and made judgement and estimates that are reasonable and
appropriate so as to give true and fair view of the statement of affairs of
the company at the end of the financial year 31st March, 2001 and the
profit of the company for that period:
iii) That the Directors have taken proper and sufficient care for the
maintenance of the adequate accounting records in accordance with the
provisions of the companies Act, 1956 for safeguarding the assets of the
company and for preventing and detecting frauds and other irregularities.
iv) That the Directors have prepared the Annual Accounts on a going concern
At the Annual General Meeting, Members are requested to appoint Statutory
Auditors for the current year.
FIXED DEPOSITS / CLAIMS ETC.
The Company has not accepted any fixed deposits.
PARTICULARS REGARDING CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION,
FOREIGN EXCHANGE EARNINGS AND OUTGO
Information regarding conservation of energy etc. as per Sec. 217 (1) (e)
of the Companies Act, 1956 read with Companies (Disclosure of Particulars
in the Report of Ward of Directors) Rules 1988, is given below
a. Conservation of Energy
The particulars regarding conservation of energy are not applicable to the
Company as the Imitation Jewellery Industry is not covered under the
schedule prescribed by the said Rules.
b. Technology Absorption
The manufacturing process for imitation Jewellery involves making of dies
for different designs which are manufactured using in-house technology
developed by the Company.
c. Foreign Exchange Earnings and Outgo
Details regarding foreign exchange earnings and outgo are given in note 12
of Schedule "P" of the Accounts.
PARTICULARS OF EMPLOYEES
There are no employees in respect of whom a statement of particulars u/s
217 (2A) of the Companies Act 1956 read with the Companies (Particulars of
Employees) Rules is required to be given.
Your Directors would like place on record their appreciation to all the
staff members for their excellent contribution to the creditable
performance of the Company and to the Bankers, Shareholders and Customers
for their sustained support.
For and an behalf of the Board of Directors
Place: Mumbai N.C. Soni
Date : 31st August, 2001 Chairman & Managing Director