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Devidayal Industries Ltd.

BSE: 503976 Sector: Metals & Mining
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Devidayal Industries Ltd
NSE 05:30 | 01 Jan Devidayal Industries Ltd

Devidayal Industries Ltd. (DEVIDAYALINDS) - Director Report

Company director report

1996 DEVIDAYAL INDUSTRIES LIMITED DIRECTORS' REPORT Your Directors submit their report together with the audited statement of accounts for the financial year ended 31st March, 1996. 1. DIVIDEND In view of the losses suffered by the Company, your Directors do not recommend payment of dividend. 2. OPERATIONS We had informed the shareholders that market conditions for Non Ferrous Division were very uncertain and because of mushroom growth of SSI units and heavy burden of excise duty, the Company had decided to taper down the production of enamelled winding wires and discontinued the production of PVC winding wire and cables. During the year, by discontinuing the manufacturing activities of PVC winding wire the Company reduced manpower required for this productline. As regards Enamelled copper winding wire, because of the working capital problems, the Company could not even achieve the production at the restricted planned level and in fact it was about 50% as compared to 1994-95. As regards Ferrous Division and Fire Protection Division the Company could maintain the turnover level of last year which was higher by 33% to 198%, respectively as compared to 1993-94. However due to funds constraint and liquidity clunch in the market in general, it could not increase the volume of production. Due to the losses incurred by the Company for three consecutive years, it has become a potentially sick Company under section 3 of the Sick Industrial Companies (Special Provisions) Act, 1985. However, with the proposed sale of land development rights to be given to others during the current year i.e. 1996-97, it will have positive networth and the Company will no longer be a sick unit. 3. CURRENT YEAR PROSPECTS The Company is in the process of re-organising its activities and is also inducting long term funds. It is also strengthening its operations of Ferrous Division. The Fire Protection Division has also improved its order position and its current year prospects are quite encouraging. With the implementation of turnaround strategy during the current year the Company is confident to be on the path of growth and profitabiity. 4. FINANCE With a view to raise long term funds to overcome the funds constraint and to fund the losses, the Company is planning to sell/develop the surplus vacant land during the current year. 5. AUDITORS' REPORT TO THE MEMBERS The report of the Auditors to the Members is annexed to the Accounts. 6. DIRECTORS Mr. Bankey Aggarwal retires by rotation and being eligible offers himself for re-appointment. Mr. V.C. Desai has been appointed as Nominee of LIC on the Board of Directors. 7. AUDITORS You are requested to appoint the Auditors to hold Office from the conclusion of this meeting until the conclusion of the next Annual General Meeting of the Company and fix their remuneration. M/s. Haribhakti & Co, the present Auditors have furnished their certificate of eligibility for reappointment as required under the provision to Section 224 (1)(B) of the Companies Act, 1956. 8. PARTICULARS OF EMPLOYEES, EXPORTS, CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION: The particulars as required under the provisions of Section 217 (2A) of the Companies Act, 1956 and Companies (Disclosure of Particulars in the Report of the Board of Directors) Rules, 1988, are nil. For and on behalf of the Board of Directors Kewal Aggarwal Chairman and Managing Director Place : Mumbai Date : 28th June, 1996.