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Ambuja Electrocastings Ltd.

BSE: 513317 Sector: Metals & Mining
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Ambuja Electrocastings Ltd. (AMBUJELCST) - Director Report

Company director report

AMBUJA ELECTROCASTlNGS LIMITED DlRECTORS' REPORT Your Directors present their Report and Audited Accounts of the company for the year ended 31.03.97. DIVIDEND You directors express their inability to recommend any dividend for the year due to inadequacy of profits during under review. REVIEW OF OPERATIONS Due to paucity of working capital net sales was Rs. 1465.7 lacs against Rs. 2057.11 lacs in previous year. Company has suffered a loss of Rs. 129.19 lacs mainly due of interest and power and fuel expenses. Interest and Power & Fuel for the year 1996-97 are Rs. 111.91 lacs and Rs. 26.32 lacs as against Rs. 50.72 lacs and 161.69 lacs respectively in the previous year. AMBUJA ELECTROCASTINGS (NEPAL) LTD.:--SUBSIDIARY COMPANY Due to political uncertainly in Nepal and non viability of the plant, the Board of Directors of subsidiary company decided to sell off the plant and the company has executed agreement with Ganesh Bhakht Shakh. Kathmandu (Nepal) in January 1997 to sell off complete plant at a consideration of Nepalese Rs. 1.6320.001 and adjustment in respect of investment made by holding company will be made in this year. PUNJAB UNIT Capacity utilisation of Punjab unit was very low due to frequent breakdown of Plant & Machinery. Efforts are being made to improve efficiency of Punjab unit. FORFEITURE OF SHARES Company had alloted 96,72,000 Equity Shares of Rs. 10/- each in respect of Right Issue in January 1995. These Equity Shares were issued at premium of Rs. 8/- per share. Rs. 6/- per share was payable on account of allotment money and also First and Final Call money. On 44,11,995 Equity Shares allotment money/First and Final Call money has not been paid by shareholders inspite of repeated reminders including final notices sent by registered post. The Board of Directors will lake necessary action very shortly to forfeit these shares for non-payment of allotment money and first and final call money. PARTICULARS OF EMPLOYEES There was no employee who received remuneration of Rs. 3.00 lakhs or more per annum hence no particulars have been given. CONSERVATlON OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO Pursuant to provisions of section 217(1) of the Companies Act, 1956 read with Companies (Disclosure of particulars in the Report of Board of Directors) Rules 1988 statement showing particulars of conservation of energy has been annexed hereto and forms part of this report. DIRECTORS Sri Durga Prasad Gupta, Director of the Company retires at the ensuing Annual General Meeting, but being eligible offers himself for reappoinment. Sri Pawan Kumar Gupta, Director of the Company has resigned from the Board w.e.f. 17.06.97 and nomination of Sri P.R. Roy has been withdrawn by Bihar State Credit & Investment Corporation. He ceases to be a director w.e.f. 25.08.97. Your Directors place on record their appreciation of their valuable counsel provided by them during their tenure office. AUDITORS M/S P. Agrawal & Co. Chartered Accountants retire at the ensuing Annual General Meeting but being eligible offer themselves for reappointment. APPRECIATION Your Directors wish to place on record their appreciation of the support and contribution made by the employees onwards the operation of the company. Your Directors also wish to place on record their appreciation for supplies given by Balk of India and financial institutions during the year under review. For and on behalf of Board of Directors D.P. GUPTA Chairman Patna Date: 02-09-97