RISHABH PRECISION BEARINGS LTD
To the Members,
Your Directors have pleasure in presenting the NINTH ANNUAL REPORT together
with the Audited Statement of Accounts for the year ended 31st March, 1998.
The year under report witnessed unsatisfactory for Indian Industry as a
whole. The crisis in South East Asia has also affected Indian economy which
resulted into overall decline in rate of growth of Industrial Production to
4.2% compared to 7.1% in last year. Consequently, there was adverse effect
on automobile industry. The company's 80% of the production is absorbed on
consumption by the Automobile Industry. The year under review was not
particularly favourable to the company due to overall recession being
witnessed by the automobile industry as a whole. The company had to reduced
its prices in view of ongoing recession and depressed market conditions,
which started around January, 1996. There was expectation and hope for
improvement of demand in Auto industry, however the same was not fulfilled.
In fact production of heavy and medium commercial vehicles dropped by 38%
and light Commercial vehicles by 4%. The car industry registered negative
growth of 2% and two wheeler industry had small growth of 3%. Hence
bearing industry as a while suffered severe set back, first on reduced
prices and next on volume. Under the adverse circumstances, your company
has managed to have turnover of Rs.22.78 lakhs compared to previous year
turnover of Rs. 21.55. Lakhs.
Your company has envisaged a capital expenditure project of Rs. 140.00
crore for which land has been acquired at Ahmedabad to put up additional
capacity to manufacture Ball and Taper Roller.
Your company is taking steps to boost its market share by approaching OEM
Original Equipment Manufacturers) and also Railways, Defence Department for
this bulk requirement.
In view of negligible profit, your Directors do not recommend any dividend
for the year under Report.
During the year under report Mr. Sanjiv M. Gupta and Mrs.Sunayana R. Vora
have resigned as Directors of the Company. The Board expresses its
appreciation for valuable guidance and co-operation received by the
Company from then time to time during their tenure as Directors.
Mr. Dhirajlal H. Vora and Mr. Pravin B. Kamdar, Directors of the company
retire by rotation and, being eligible, offer themselves for reappointment.
Your Company has approached Financial Institutions and OBC and Non Resident
Indian for the placement of 60,00,000 Equity Shares of the Company on
Private Placement Basis for which the necessary approval of the members was
already obtained in the 8th Annual General Meeting of the Company.
The purpose of raising the resources through the above source is to finance
the working capital, requirements and also to finance the capital
expenditure programme of the company.
In view of depressed market condition in Ball bearing Industry your company
has also approached their Bankers/Financial Institutions for reschedulement
in repayment of financial facilities granted by them.
The NCD on private placement are due for Redemption on 30th November, 1998.
The same has been decided to be extended for a further period of 18 months
as per the terms of the issue.
In view of applications made to Banks and Financial Institutions for waiver
of Interest, no interest has been provided in the accounts.
With reference to item No.11 under Notes forming part of Accounts, the
company has not given effects in Revised Account of relevant year, since
the matter is pending with Income Tax Authorities.
AUDITORS : -
M/s. S. M. Bhat & Co., Chartered Accounts, Mumbai retire as Statutory
Auditors of the Company at the conclusion of the ensuing Annual General
Meeting and being eligible offer themselves for reappointment. The members
are requested to appoint Auditors for the current year and fix their
remuneration. The present auditors has furnished a certificate regarding
their eligibility for re- appointment as Company's Auditors pursuant to
Section 24 (1B) of the Companies Act, 1956.
PARTICULARS OF EMPLOYEES:
The information in accordance with the provisions under Section 217(2A) of
the Companies Act, 1956 read with Companies (Particulars of Employees)
Rules, 1975 is not applicable as no employee of the Company, during the
year under report, was drawing salary as mentioned in the said provision.
INFORMATION REGARDING CONSERVATION OF ENERGY ETC.
Information as required u/s 217(1) (e) of the Companies Act 1956 as may be
applicable, is annexed hereto.
Industrial relations at the plant of the Company at Surendranagar remain
cordial. Directors wish to convey their appreciation for the contribution
made by the employees at all level.
Your Directors take this opportunity to place on record their appreciation
of the devoted services of the employees at all levels throughout the year.
Your Directors also wish to place on record their appreciation of the
assistance and continued co- operation extended by the Banks, Financial
Institution in particular Government Authorities Suppliers, Consultants
For and on behalf of the Board of Directors
Dhirajlal H. Vora
Place : Mumbai,
Date : 8th October, 1998.