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Denmur Fax Roll Ltd.

BSE: 526273 Sector: Industrials
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Denmur Fax Roll Ltd. (DENMURFAX) - Director Report

Company director report

1995 DENMUR FAX ROLL LIMITED DIRECTORS' REPORT Your Directors take great pleasure in presenting the Third Annual Report for the year ended 31 st March, 1995. Project Details & Future Prospects The technology for making Thermal Paper is implemented for the first time in the Country and the Company decided to have a comprehensive trial run. For this purpose the Company had the Collaborators visit the plant both before and after the installation of the equipments and subsequently trial runs after thorough dry run and with inputs, the Company started production. The Company among other things faced technological deficiencies due to tropical conditions. The Collaborators help sought to overcome the problems but adequate support has not been forthcoming. Hence the Company with its own in-house Research & Development have done suitable modifications to machineries, changed coating chemistry and redefined paper specifications to overcome the deficiencies stated above. The Company is in the process of lodging claim on the Collaborator. In respect of the Pouch production the Company experienced problems in setting parameters and hence commercial exploitation could not be achieved. Due to the above and also due to modifications to be carried out to the machineries it has been decided to Capitalise expenditure incurred during the year 1994-95 and the pre-operative expenses of Rs. 705.80 lacs till 31.3.95 is carried forward. A Statement of Pre-operative expenses is presented. Hence furnishing of information pertaining to Projections and Performance for the year does not arise. Prospects The Company undertook successfully trial orders to export Fax Rolls during the year out of the trial production and has received lot of enquiries from both domestic and overseas markets. The Directors are optimistic about the future. Directors During the year Mr. P. Nagaraj has been appointed as Alternate Director to Mr. Suresh Nagaraj on 12.3.95. Mr. J.H. Kumar, Alternate Director to Mr. Chandrasekar Venkatraman Vacated office on 24.11.94 and reappointed on 3.12.94 as Alternate Director. Mr. P.N. Devarajan, Mr. Upendra Ambalal Shah and Mr. Pankaj Madhukar Tamhane Directors are due to retire under Section 256 of the Companies Act, 1956 and are eligible for reappointment. Deposits The Company has not accepted any deposits from the public. Conservation of energy The Company has not commenced any manufacturing activities and particulars regarding Conservation of Energy are not applicable. Technology Absorption The Company has entered into a Technical Collaboration Agreement with M/s. Mark Sensing Australia (Pty) Ltd, Australia for the manufacture for Thermally Coated Sensitive (TCS) Paper for which three instalments have been remitted and the relevant Technology documents, drawings, etc. have been obtained from the collaborators. The technology absorption details as required by Section 217 (1) (e) of the Companies Act, 1956 are given in Annexure. Foreign Exchange Earnings & Outgo in 1994-95 The Company has earned through export of Fax Rolls of Rs. 8.56 Lacs out of trial Production. The Company has incurred an expenditure in foreign exchange of Rs. 91.08 Lacs towards remittance of Technical Know-how fees and Rs. 3.50 Lacs for Investors Conference at Dubai. Particulars of Employees There are no employees drawing in excess of the limits prescribed under Section 217 (2A) of the Companies Act, 1956. Auditors Observation made in the Auditors Report are self explanatory and do not require further clarification. M/s. Krishnan & Co., Chartered Accountants, retiring auditors, are eligible for re-appointment. Appreciation The Directors are thankful to M/s. Mark Sensing Australia (Pty) Ltd., Australia, Industrial Development Bank of India, Indian Bank, Bank of Baroda, Punjab National Bank, Ind Bank Merchant Banking services Ltd, Government of India, Government of Tamil Nadu and State Industries Promotion Corporation of Tamilnadu Ltd., for their support during the year. The Directors also place on record their appreciation of the good work done by the employees during the year under report and look forward to their sustained cooperation in the years to come. ANNEXURES OF THE REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31.3.95 I. Particulars required under the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules 1988. A. Conservation of Energy: Since the Company has not commenced operations this is not applicable. B. Foreign Collaboration / Technology absorption: Efforts made in technology absorption as per from - B enclosed. Form - B Disclosure of particulars with respect of Technology Absorption Research and Development 1. Specific areas in which R & D carried out by the Company: Product Development, Improvement in Quality, Process & System improvement. 2. Benefits derived out of above: Reorientation of Control, system to meet the product specifications. 3. Future plan of action: To strengthen R & D, develop newer range of thermal products and usage of indgenous inputs. 4. Expenditure on R & D: No specific expenditure has been incurred during the year 1994-95. Technology Absorption, Adaptation and Innovation 1. Efforts in brief made towards Technology Absorption, Adaptation and Innovation: The Technology documents relating to the manufacture of Thermal Sensitive Paper, Labels and product thereof, drawings, document etc. have been transferred by the collaboration. The Company through its in-house R & D upgraded and changed the Paper specifications, Coating Chemistry and done major equipment changes to standardise the product. 2. Benefits derived out of the above: The project is yet to commence commercial production. Hence benefit not applicable. 3. Particulars of technologies imported during the last 5 years: i. Name of the Collaborator: M/s. Mark Sensing Australia Pty. Ltd., Australia. ii. Name of the Products being manufactured by the Company under Foreign Collaboration: Thermal Sensitive Paper, Labels and product thereof. iii. Nature of Agreement/Foreign Collaboration/Financial-cum- Technical/Technical: Technology Transfer Licensing Agreement. (Exclusive License Agreement). iv. Year of import/absorption : 1993. v. Status of Implementation: The physical implementation of the Project essentially implemented and has overcome deficiencies in Paper Specifications, Coating Chemistry and Equipment design through its in-house R & D efforts. For and on behalf of the Board P.N. Devarajan Chairman Place : Madras, Date : 27th October, 1995.