ANNUAL REPORT 1998-99
SUNKU AUTO LIMITED
As the Financial year of the Company extended up to 31-03-2000 ,your
Directors are now presenting a tentative performance appraisal for the
period ended 30th Sept, 1999.
REASONS FOR SHORTFALL: Due to un-precedented demand recession in the
automobile industry and down trend in the prices of the products of
competitors and also entry of new players in the market, lower sales
realisation and increased cost of inputs have adversely affected the sales
and profit margin of the company.
DEPOSITES: The Company did not accept any deposits during financial Year
SUBSIDIARIES: M/s Appollo Chains & Zips Pvt. Ltd. The audited accounts
along with the Directors report for the year ended 31-03-1999 in respect of
the above subsidiary company is annexed as required u/s 212 of the
Companies Act, 1956
DIVIDEND: Due to inadequacy of profits, your Directors do not recommend the
dividend for the Financial Year under consideration.
OPERATIONS: The operations of the Company for the year under review are
satisfactory. The Sales for the Year is Rs. 1 138 lacs (for the 12 months
period) despite the prevailing market conditions and tough competition.
The Company is taking steps to substantially increase the production.
DIRECTORS: Sri M V Narayana Rao will retire by rotation at this Annual
General Meeting and, being eligible, offers himself for re-appointment.
Smt S Annapurna will retire by rotation at the ensuing Annual General
Meeting, and being eligible, offers herself for re-appointment.
INDUSTRIAL RELATIONS Industrial relations are cordial. Your directors wish
to express their appreciation for the dedicated services rendered by the
staff, officers and workers of the company.
ACKNOWLEDGEAENTS: Your directors take this opportunity to place on record
their great appreciation and gratitude for the whole-hearted
support,assistance, co-operation and valuable guidance that has been coming
from Induslnd Bank Ltd., S.P Road, Secunderabad and also from Central and
State Governments and all those who are associated with the Company more
particularly the investors who have reposed their confidence in the
On behalf of the Board
For Sunku Auto Limited
PLACE Nyderabad (M.V.NARAYANA RAO)
Information as per Section 217(1 )(e) read with the Companies (Disclosure
of particulars in the Report of Board of Directors Rules. 1988 and forming
part of the Directors' Report for the year ended 30th September, 1999
(A) CONSERVATION OF ENERGY
a) Energy Conservation Measures taken : Nil
b) Additional investment and proposals,: Nil
if any being implemented for reduction of
consumption of energy
c) Impact of the measures at (a) and (b) : Nil
above for reduction of energy consumption
and consequent impact on the cost of
d) Total energy consumption and energy : Nil
consumption per unit of production
(B) TECHNOLOGY ABSORPTION:
(e) Efforts made in technology absorption : Nil
as per Form B
(See rule 2)
Form for disclosure of particulars with respect of absorption
Research and Development (R & D)
1. Specific areas in which R & D carried out by the company.
A new model vehicle 6+1 seater has been developed in the in- house and sent
to ARAI Pune for statutory approval and already clearance received from
2. Benefits derived as a result of the above R & D.
The Commercial vehicles are already released in the market for which there
is good response from the market
3. Future plan of action
A regular plan has been chalked out to develop some more new models of
vehicles and relevant components in the in-house.
4. Expenditure on R & D:
(a) Capital Nil
(b) Recurring Nil
(c) Total Nil
(d) Total R & D expenditure Nil
as a percentage of total turnover.
Technology absorption,adaptation and innovation
1. Efforts, in brief, made towards technology absorption,adaptation and
2. Benefits derived as a result ot the above efforts, e,g, product
improvement,cost reduction,product development,import substitution, Nil
3. In case of imported technology (imported during the last 5
years reckoned from the beginning of the financial year), following
information may be furnished:
(a) Technology imported Nil
(b) Year of import Nil
(c) Has technology been fully absorbed ? Nil
(d) If not fully absorbed,areas Nil
where this has not taKen place, reasons
therefor and future plans of action.
(C) FOREIGN EXCHANGE EARNINGS & OUTGO
(f) Activities relating to exports, initiatives
taken to increase exports, development of new
export markets for products and services and
export plans. : Export of Auto Rickshaws.
(g) Total Foreign Exchange used and earned : $ 6.282.