KAR MOBILES LIMITED
Your Directors are pleased to present the fiftyeighth Annual Report
together with the accounts for the year ended 31st March 1995.
DIVIDEND AND RETAINED PROFITS
From the profits available for appropriation, Preference dividend at 14%
per annum for the period 1st April 1994 to 30th June,1994, subject to
deduction of tax, has been paid at the time of redemption. Dividend at 24%
on equity capital of the company amounting to Rs.26,88,000 subject to
deduction of tax is recommended for 1994-95. This would leave the company
with a retained profit of Rs.77,62,586 out of which Rs.15,00,000 is
transferred to Debenture Redemption Reserve and Rs.60,00,000 to General
Reserve, leaving behind Rs.2,62,586 as surplus in profit and loss account.
GENERAL REVIEW OF THE YEAR
In forecasting for the Financial Year 1995-96, the board had taken a view
that subject to inflation being under control, the automotive industry
would register significant growth. All the industrial sectors were buoyant
during the year and registered a growth of nearly 9%. The board is
particularly pleased that the automotive industry led the growth with the
medium and heavy commercial vehicles registering 55% and the passenger car
segment 26%. The opening up of the Indian economy, consumer friendly
policies, and favourable monsoon conditions sustained the consumers'
confidence in the Indian economy.
The company has registered a sales growth of 29.66% including a growth of
28.58% in exports.
OUTLOOK FOR THE YEAR
The expectation is that the industry would continue to grow. Action
initiated to optimise utilisation of capacities at both the plants would
enable the company to increase sales.
As is known, leading global players have announced plans for manufacturing
ventures in India. Your company has already taken necessary steps to tap
this potential. Technology agreements are under discussion and is expected
to be concluded shortly.
PREFERENCE SHARE CAPITAL
The 14% Cumulative Redeemable Preference shares of the face value of
Rs.8,47,500 was redeemed on 30th June, 1994.
The deposits outstanding as on 31.3.1995 amounted to Rs.33.85 lacs. All
deposits that matured during the year were repaid/renewed except for a sum
of Rs.46,001, for which claims were not lodged with the company.
Mr R K Chari relinquished the Chairmanship of the Board after six years of
leadership Mr L Ganesh was appointed Chairman of the Board at its meeting
held on 16th June. 1995. The Board placed on record its appreciation for
the guidance given by Mr Chari during his tenure.
Mr S Krishnamurthy joined the Board as nominee of the Industrial Credit and
Investment Corporation of India Ltd. on 16th June, 1995.
Mr K Vishnumurthy Yerkadithaya and Mr. T M Ramachandran retire by rotation
under Article 116 of the Company's Articles of Association and being
eligible offer themselves for re-election.
CONSERVATION OF ENERGY
The company has taken various measures for optimising usage of energy.
Your company has been taking steps to enhance productivity, keeping
"consistent quality" and "process reliability" as important objectives. The
Tumkur plant received accredition of ISO 9002 from BVQI of UK during the
year. Your company is actively working to get ISO 9002 accredition for its
Peenya Plant during the current year. Statement giving information as
required under the Companies (Disclosure of Particulars in the Report of
Board of Directors) Rules, 1988 are enclosed as a part of this report.
FOREIGN EXCHANGE EARNINGS AND OUTGO
Your company has registered significant growth in exports during the year
under review. Compared with the previous year. the exports have increased
from Rs. 580.76 lacs to Rs. 746.72 lacs registering growth of 28.58%. The
total foreign exchange earned and used during the period are as under:
(Rs. in Lacs)
Foreign exchange earned (FOB Value) 730.93
Foreign exchange used 395.31
Statement of particulars of employees pursuant to Section 217(2A) of the
Companies Act,1956 read with rules thereunder is annexed.
M/s Varma & Varma and Sankaran & Raman, Chartered Accountants, the retiring
joint Auditors of the company are eligible for reappointment. Certificates
u/s 224 (1-B) of the Companies Act,1956 has been received from them.
The directors wish to place on record the continued patronage received from
the original equipment customers, state transport undertakings and dealers.
The directors wish to place on record the assistance received from the
various departments of Central and State Governments, Electricity Board,
the financial institutions and the company's bankers and the employees of
Information as per Section 217(1)(e) of the Companies Act, 1956 read with
Companies (Disclosure of particulars in the report of the Board of
Directors) Rules, 1988 and forming part of the Directors' Report for the
year ended 31st March,1995.
RESEARCH & DEVELOPMENT (R&D)
The R&D activities already initiated for improving the production process
technology aiming to reduce cost of production is continuing.
The actions already initiated by the company to improve production
technology is actively continuing. The company has developed certain
special purpose machines to improve productivity and quality of production.
The company has not imported any technology during the last 9 years.
For and on behalf of the Board
Place : Bangalore,
Dated : 16th, June 1995.