MOHATTA AND HECKEL LIMITED
ANNUAL REPORT 2001-2002
Your Directors present the 40th Annual Report along with Audited Statement
of Accounts your Company for the year ended 31st March,2002.
FINANCIAL RESULTS (Rs. In Lacs)
Current Year Previous Year
Ended on Ended on
TOTAL INCOME 1042.41 765.36
PROFIT BEFORE DEPRECIATION,
TAXATION AND EXTRA-ORDINARY
ITEMS 18.50 (9.64)
Less: DEPRECIATION 25.37 50.62
PROFIT BEFORE TAXATION AND
EXTRA- ORDINARY ITEM (6.87) (60.26)
Less: EXTRA-ORDINARY ITEM
COMPENSATION 16.53 18.61
PROFIT (LOSS) BEFORE
TAXATION (23.40) (78.87)
Less: PROVISION FOR TAXATION
PROFIT AFTER TAX (23.40) (78.87)
Add: BALANCE BROUGHT FROM THE
PREVIOUS YEAR (695-02) (616.15)
BALANCE CARRIED TO BALANCE SHEET (718.42) (695.02)
The financial result as depicted above is for a period of 8 months as the
company had resumed its production activity only from August '2001 after a
suspension of operation nearly for a period of 12 months. The performance
of the company is adversely affected due to non-availability of working
capital. Old customers stood by the company in the adverse situation of the
company and they have reposed their confidence in the company by giving
fresh orders. The Company has paid total Employees Separation Compensation
of Rs. 84.73 lacs in last two years which has been contributed by the
promoters. As a result of that the wage bill of the company has been
reduced drastically which will show its positive effect on the
profitability of the company the years to come.
The F.O.B. Value of exports for the current year is Rs.240.54 Lacs as
compared to last year which was Rs.263.05 Lacs. As the company has received
ISO 9001 -accreditation the products of the company are well accepted in
the international market.
In view of the losses incurred, your Directors do not recommend any
dividend for the year ended 31st March, 2002.
During the year the company has not accepted any deposits within the
meaning of Section 58 -A of the Companies Act 1956 said the rules made
The Board of Industrial and Financial Reconstruction have declared the
company as a sick unit in terms of Section 3(1)(o) of the said Act. The
State Bank of India (SBI) has been appointed as the Operating Agency (OA)
under Section 17(3) of the Act, to examine the viability of the Company and
formulate a rehabilitation scheme of revival. SBI being the Operating
Agency appointed by BIFR submitted their report finding the Company to be
viable subject to certain conditions. The matter is pending before the
Since there are no employees drawing the salaries as specified in Section
217(2A) of the Companies Act 1956 read with the Companies (Particulars of
Employees) Rules, 1975. The said rules are not applicable.
Pursuant to Section 217(2AA) of the Companies Act 1956 the Directors
a) that the applicable accounting standards have been followed along with
proper explanation whichever required in the preparation on annual
b) that the Company has adopted prudent accounting policies
c) that proper care has been taken for maintenance of accounting records in
accordance with the provisions of the Act, and
d) that the annual accounts of the company have been prepared on a going
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING AND
1. Conservation of Energy:
Form 'A' is not applicable, as the company does not fall in the list of
industries mentioned in this schedule.
2. Technology Absorption:
The company has not entered into any technology tie up with overseas
parties and as such no technology absorption and innovation could be done.
The research and development activities could not be continued due to
3. Foreign Exchange Earning and outgo:
(Rs. In Lacs)
Current Year Previous Year
F.O.B. Value of Exports 240.54 263.05
C.I.F. Value of Imports
(a) Raw Materials 417.38 27.99
(b) Capital Goods NIL NIL
Expenditure in foreign
currency NIL NIL
Shri Anand kumar Mohatta retires by rotation and being eligible offers
himself for reappointment.
Shri Kotnish C. Todarwal has resigned as director of the company since 12th
AUDITORS AND AUDITOR'S REPORT
M/s M. V. Krishna Moorthy Chartered Accountants retire and offer themselves
The auditor's report on the accounts of the company is self-explanatory
except the following NOTES made by them
1. NOTE NO.1(V) OF SCHEDULE M: In respect of gratuity liability.
The company has decided to account the Gratuity liability on payment basis
as the amount of the same is yet to be ascertained.
2. NOTE NO.9 OF SCHEDULE M: In respect of non provision of interest on CC
A/c., SBI Mutual Fund (Debentures) & other deposit (amount not
Since the amount of interest exactly payable by the company is not
ascertained, same have not been provided.
NOTE NO.10 OF SCHEDULE M:In respect of non provision of power and fuel
The amount payable to M.S.E.B. includes penal charges and interest payable
to M.S.E.B. for delayed payments of various power bills. The company has
made application to M.S.E.B. for relief/waiver of the same on the basis of
reference application made to BIFR.
Your company and its Board have been complying with to the extent setout in
this respect as a separate report, in pursuance of requirements of clause
49 of the Listing Agreement. Auditors certificate regarding compliance of
the conditions of Corporate Governance as stipulated under the said clause
is also attached to the report.
Your Directors would like to express their grateful appreciation for the
assistance and cooperation received from the Financial Institutions,
Bankers, Staff and Workers.
For and on behalf of the Board of Directors
Anand Kumar Mohatta
Date : 18.07.2002