KAVINI ISPAT LIMITED
To The Members of Kavini Ispat Limited
Your Directors have pleasure in presenting the second Annual Report together
with the audited accounts for the year ended 31 st March 1994.
Your directors are happy to inform you that the project to manufacture 9000
tons of Cast Iron Castings has been implemented within time and cost
parameters. There has been a saving in the cost of about Rs.1.81 Lakhs.
With a view to operating efficiently your campany has created necessary
infrastructure facilities. Your company attaches utmost importance to quality
and is working towards the goal of achieving and surpassing its projections.
We take this opportunity to record our gratefulness to the contractors,
suppliers, consultants, Govt. Departments for their support in enabling us in
executing the project in time. Our, appreciation goes to the staff, who have
shown dedication in completing the various tasks on time during the
COMMENCEMENT OF COMMERCIAL OPERATION
The company commenced commercial operation from the 20th April 1994 and is
already through with executing the orders/supplies in a satisfactory manner.
The company has achived a turnover of Rs.146.40 lakhs and a gross profit of
Rs.36.27 lakhs during the current year in its operations untill June 1994.
As there was no commercial operation during the period under review, the
question of declaring dividend does not arise.
Despite recessionary conditions in major importing countries, Indian exports
of steel and services have increased drastically. The impressive export
performance is a result of the liberalised economic environment and the
strong image India has acquired in the international market over the years.
PUBLIC ISSUE AND LISTING:
The company offered 23,40,000 Equity Shares of Rs.10/- each in December 1993
to the Indian public aggregating to Rs. 234 Lakhs for cash at par and the
Board of Directors are pleased to inform that the issue was fully subscribed
despite adverse conditions prevailing in the Capital Market. The Directors
thank the investing public for the confidence reposed in the company.
Allotment of shares was made on the 21st February 1994 and the listing
applications were made on the 24th February 1994 to the Bombay, Madras and Hyderabad Stock Exchanges. Trading permission was granted by Bombay,
Hyderabad and Madras Stock Exchanges on the 9th March 1994.
INFORMATION PURSUANT TO SECTION 217(1) OF THE COMPANIES ACT 1956 READ WITH
COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF DIRECTORS) RULES, 1988.
Particulars in respect of conservation of energy and technology absorption
are nil for the period under review.
There was no foreign exchange outgo or earnings during the year under review.
There are 114 employees on the works of the company as of date.
Sri Basu Bhuwalka & S.M. Uday Kumar retire by rotation and being eligible
offers themselves for re-election. The company has received a separate notice
in writing from a member under section 257 of the Companies Act 1956
signifying his intention to propose the appointment of Sri S.M. Uday Kumar.
M/s Basil Miranda & Co. auditors of the Company retire at the conclusion of
this Annual General Meeting and offer themselves for re-appointment. The
directors recommend Rs. 7,500/- towards audit fees for the next year.
The Board of Directors gratefully acknowledge the warm and overwhelming
support from the shareholders of the company and solicit their continued
patronage in nurturing this company to a bright future. Your directors wish
to clace on record their appreciation for the devoted service of all
Bimal K Bhuwalka
S.M. Uday Kumar Directors
17/08/94 P.K. Dutta