HYDERABAD LAMPS LIMITED
Your Directors present the 11th Annual Report together with the audited
accounts for the year ended 31st March, 1994.
As already reported in the earlier years, several external factors like
severe recession in the Lamp Industry,frequent civil disturbances and
unhealthy competition over which the company had very little control together
with other factors like closures of factory for some times, mainly due to
constraints on working capital funds and labour unrest have resulted in
almost a grinding halt to the regular operations during the year under
review. Despite the closure, as mentioned above the full burden of fixed
over-heads and financial costs including a provision of Rs. 180 lakhs towards
doubtful debts and advances for the year had led to the loss. The steps
initiated over the years for the recovery of stagnant debts other than those
which were under legal dispute could not yield any satisfactory results to
improve the liquidity particularly in the absence of committed and continued
further supplies by the company.
It was therefore considered prudent to reflect the active current asets more
realistically. Accordingly reconciliation process of accounts receivable
which remained pending over the years was completed during the year under
review and consequential adjustments have been given effect to in the
All the above have cumulatively contributed to the reflection of substantial
operating loss during the year under review.
Consequently, the modernisation and diversification plans and Rights Issue
have been deferred.
Report of Sickness:
Since the net worth of the Company has been eroded as on 31.3.1994, the
company has taken the neccessary steps to comply with the provision of Sick
Industrial Companies (Special Provisions) Act 1985 and to submit the report
in the appropriate form to the Board for Industrial and Financial
The Factory has been under Lock-out since 21 st March, 1994.
Deposits amounting to Rs. 1.49 lakhs were claimed but not paid as at the end
of the year.
During the year, Dr. Kakarla Subba Rao has resigned from the Board. Your Directors take this opportunity to place on record their appreciation of the
valuable services rendered by Dr. Kakarla Subba Rao. Sri. V. Venugopal Naidu
and Sri. R. P. Saxena, Directors of the Company will retire by rotation at
the forthcoming Annual General Meeting and being eligible offer themselves
The present Auditors M/s. Nataraja Iyer & Company, Chartered Accountants
retire and are eligible for re-appointment, with regard to the various
remarks by the Auditors the respective notes are self-explanatory.
Particulars of employees as required under Section 217 (2A) of the Companies
Act.1956. read with Companies (particulars of employees) Rules,1975 and
information required under Section 217 (1) (e) of the Companies Act, 1956
read with the Companies (Disclosure of particulars in the Report of Board of
Directors) Rules, 1968 are given in Annexures A and B respectively forming
part of the report.
The Directors thank Central & State Governments, I.C.I.C.I., I.D.B.I.,
I.F.C.I., A.P.I.D.C. State Bank of India, State Bank of Hyderabad and Andhra
Bankforthe Co-operation extended by them to the Company. The Directors record
their appreciation for the services rendered by the staff and workers.
for and on behalf on the Board
ANNEXURE - B
Information as required by companies (disclosure of particulars in the report
of board of directors) Rules 1988.
A.CONSERVATION OF ENERGY:
Energy conservation measures taken and proposals for deduction of consumption
of energy during the year and impact of the measures. NIL
B. Research & Development (R&D)
1. Specific areas in which R&D carried out by the
2. Benefit derived as result of the above R & D. NIL
3. Future plan of action.
4. Expenditure on R & D
d. Totasl R & D expenditure as a percentage of total turnover.