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Mideast (India) Ltd.

BSE: 500278 Sector: Others
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Mideast (India) Ltd. (MIDEASTI) - Director Report

Company director report

Mideast (India) Limited DIRECTORS' REPORT To the Members, Your Directors of the company have pleasure in presenting the 21st Annual Report together with Audited Statement of Accounts of the Company for the year ended 31st March, 1997. DIVIDEND In order to conserve resources the Board of Directors of your Company are of opinion that no dividend for the financial year 996-97 be recommended & resources be utilized for strengthening the existing operations of the Company. OPERATIONS Shoe Division The year 1996-97 was not good for the Indian Footwear Industry, due to unfavourable Government policies like reservation of the Shoe Industry for Small Scale Industry and higher import duty on the raw materials and components. Your Company has also experienced its impact, resulting de- cline in the turnover. The turnover of the Company has decline from Rs. 31395.14 lacs to Rs. 26584.53 lacs, a fall of 15% as compare to the previous year. The Company has posted a net profit of Rs. 1932.31 lacs. During the year under review your Company was in a consolidation phase being the 3rd year of domestic operation. The retail market was under severe strain due to the slump in the economy. Your Company faced the situation in a planned manner, and rationalized its distribution net work. The operations were regulated and inventory control system was improved. During the year six new showrooms were opened in strategically important markets. A sales conference was organized, which was attended by all the business associates. In the conference the future plans were unveiled and new advertisement and marketing strategies were formalized considering the direct market feedback. Your Company is negotiating with two Foreign Shoe Companies for setting up a joint Venture shoe manufacturing unit for retail shoe marketing. As per market study conducted by the Company the prospect for the Indian Shoe Industry is very bright in the coming years. OTHER VENTURES Steel Project The project implementation work of Mideast Integrated Steels Limited was delayed due to non disbursement of over run finance by some financial institutions. Your Company has appraised the affairs of the project to the lead term lending Financial Institution, IDBI and IDBI Is taking all necessary steps including further finance to ensure early completion of the said project. Aviation Project Directors are pleased to inform that the Mesco Airlines Limited has once again baged prestigious contracts from ONGC and Government of Himachal Pradesh. The performance of the Mesco Airlines is assuring you the best long term returns. L & T Shoe Division The Company has installed all the machines purchased for L&T Shoe unit, at Bhiwadi (Rajasthan) instead Kalol (Gujarat), as L&T could not get the Industrial Licence transferred in our name within the stipulated period. The Bhiwadi unit has already started commercial production. SUBSIDIARY The Annual Report, together with Audited Accounts, of Mesco (Mauritius) Limited are annexed hereto. The information required under Section 212 of the Companies Act, 1956 relating to subsidiary is attached to the accounts of the Company. FIXED DEPOSITS The Company has invited fixed deposits from Public during the financial year as per section 58A of the Companies Act, 1956 & provisions of the Companies (Acceptance of Deposits) Rules, 1975. The position of the Fixed Deposits as on 31st March, 1997 are as follows: 1. Big deposits (only 2 nos.) : Rs. 232.50 lacs 2. Small deposits : Rs. 249.75 lacs AUDITOR'S OBSERVATIONS The Company has been keeping sufficient balances in its current accounts with various scheduled banks, free from charges or lien, to maintain the liquid assets as prescribed in Rule 3A of the Companies (Acceptance of Deposits) Rules, 1975. As per the Auditors, liquid assets should be maintained in a separate account. The Company could not repay some of its fixed deposits in time, however the Company is repaying to all its small depositors regularly with their mutual consent. INDUSTRIAL RELATIONS Your Directors wish to sincerely thank all the employees for the cordial relations and the Management recognizes that the Company's human resources represent a vital contribution to its success, both past and future, and will continue its progressive policies to encourage excellence in professionalism both individually and team spirit. DIRECTORS During the year under review, Ms. Natasha Singh and Mr. J. K. Singh, Directors who retire by rotation at the conclusion of the ensuing Annual General meeting and, being eligible have offered themselves for re- appointment. During the year Mr. Panduranga Rao, Director of the Company had resigned from the board due to personal reason. The Board places on record the valuable and useful contribution made by him as Director of the Company. AUDITORS A.R & Associates, Chartered Accountants, Delhi who are the Statutory Auditors of the Company, retire at the conclusion of the ensuing Annual General Meeting and are being eligible for re-appointment. NOTES ON ACCOUNT The observation of the Auditors and Notes on Accounts are self explanatory and have been suitably dealt within the Schedules and Notes. PARTICULARS REGARDING EMPLOYEES INFORMATION AS PER SECTION 217 (2A) OF THE COMPANIES ACT, 1956 READ WITH THE COMPANIES (PARTICULARS OF EMPLOYEES) RULES, 1975. Particulars of employees in terms of Section 217 (2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 are set out in the Annexure ll and forms part of this report. CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNING AND OUTGO As required under Companies (Disclosure of Particulars in the report of Board of Directors) Rules, 1988 a statement showing the information relating to the conservation of energy, technology, absorption and foreign exchange earnings and outgo is enclosed as Annexure-I and forms part of this report. ACKNOWLEDGMENTS The Directors wish to thank the Financial Institutions, Company's Bankers and various authorities for all the help and encouragement extended towards the Company. Your Directors deeply acknowledge the continued trust and confidence you have place in the company. The Directors also wish to place on record their deep appreciation for the services rendered by the Officers, Staff and workers of the Company at all levels and for their dedication and loyalty. For and on behalf of the Board RITA SINGH MANAGING DIRECTOR & CHAIRPFRSON Place: New Delhi Date: 5th December, 1997