Mideast (India) Limited
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.
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
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
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.
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
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.
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.
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
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.
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.
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
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)
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
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
MANAGING DIRECTOR & CHAIRPFRSON
Place: New Delhi
Date: 5th December, 1997