CITY LIFTS (INDIA) LIMITED
Your Director have pleasure in presenting Tenth Annual Report and the
Audited Accounts for the financial year ended 30/06/96.
As per scheme of Amalgamation sanction by the Honourable High Court of
Mumbai. City Financial Services Limited and City Delstar Cable Limited were
amalgamated with the Company w.e.f. 1st July, 1995.
Your Director have not recommended any dividend for the year 1995-96
(Previous year NIL).
Due to the recession in the construction industry and also slackness in the
market the profit has droped compared to the year 1994-95 and further
internal funds are used in the wada project, so we are unable to pay the
MSFC has sanctioned the Term loan of Rs 240 Lacs for new project but the
disbursement could not be received from MSFC due to incompletion of
Amalgamation Procedure which is one of the condition for disbursement. The
approval for amalgamation which was pending with High Court could received
only latter part of the year as funds could not be availed from MSFC. This
also has delayed progress of wada.
Process of issuing shares to the new shareholders of Amalgamating Company
and additional listing procedure is delayed due to the same above said
reason and the work is being expediated.
YEAR IN RETROSPECT:
During the year 1995-96 the company has shown improvement in its turnover
by Rs. 171.46 lakhs due to the above said amalgamation.
FOREIGN EXCHANGE EARNING & OUTGO:
As required under section 217(1)(e) of The Companies Act, 1956 read with
Companies (Disclosure of particulars in Report of Board of Directors)
Rules, 1988 the information relating to conservation of energy, technology
absorption and foreign exchange and outgo is annexed.
Mr. Ketan C. Dedhia and Mr Atul Merchant, Directors of the Company, retire
by rotation at the ensuing Tenth Annual General Meeting and being eligible,
will be proposed for re-election.
The Director Mr. Tarachand Jain has retired at his own will due to some
M/s: R.R. SUVARNA & CO. Chartered Accountants, Statutory Auditor of the
company are retiring at the forthcoming Annual General Meeting and being
eligible, offer themselves for reappointment & the same are reappointed as
The specific notes forming part of the Accounts referred to the Auditors
Report are self explanatory & do not require any further clarification.
PARTICULARS OF EMPLOYEES:
Particulars of employees as required under section 217(2A) of the Companies
Act, 1956, is given in annexure forming part of this Report.
ANNEXURE TO THE DIRECTOR'S REPORT
The Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988.
(A) CONSERVATION OF ENERGY
(a) Energy Conservation measures taken:
The company's operations involve low energy consumption. However, following
conservation measures have been implemented.
1. The use of natural light enhanced by providing glass skylights.
2. Use of energy-efficient sodium vapour lamps in place of mercury vapour
lamps and fluorescent tubes.
b. Additional investments and proposals, if any being implemented for
reduction in consumption of energy:
c. Impact of the measures at (a) & (b) above for reduction in consumption
The measures taken above have resulted in saving in energy consumption.
(B) TECHNOLOGY ABSORPTION
Form for disclosure with respect to Technology Absorption.
Research and Development (R & D)
1. Specific areas in which R & D is carried out;
2. Benefits derived as a result of the above R & D:
a) Introduction of new products.
b) Improvement in overall performance, reliability, serviceability and
safety of the existing products.
c) Cost reduction, primarily by the efficient use of indigenous raw
materials and improved designs.
d) Saving in energy consumption of existing and new products.
3. Future plan of Action
To continue R & D in relevant areas to achieve benefits listed under (2)
4. Expenditure on R & D: Rs.
a) Capital 136627.20
b) Recurring --
c) Total 136627.20
(d) Total R & D expenditure as percentage of total turnover 0.31%.
Technology Absorption, Adaptation and Innovation
1. Efforts in brief, made towards technology absorption adaptation and
Introduction of Hydraulic elevator with appropriate technology using
totally indigenous components.
Improved design, material and performance in capsule elevator with good
aesthetic features to meet customers changing tastes and needs.
2. Benefits derived as a result of the above efforts, i.e. product
improvement, cost reduction, product development, import substitution etc.
Improved performance, enhanced aesthetics, serviceability, space saving and
reduction in elevator callback.
(C) FOREIGN EXCHANGE EARNING & OUTGO
1. Activities relating to exports : Not applicable
2. Foreign exchange earned : Not applicable
3. Foreign exchange outgo : Not applicable
for and on behalf of the Board
V. RAJAGOPAL K.K. SHAH
Managing Director Director
Place : Mumbai
Dated : 9th November, 1996.