Dowells Elektro Werke Ltd.
||ISIN Code: N.A.
05:30 | 01 Jan
Dowells Elektro Werke Ltd
05:30 | 01 Jan
Dowells Elektro Werke Ltd
Dowells Elektro Werke Ltd. (DOWELLSELEKTRO) - Director Report
Company director report
DOWELL'S ELEKTRO WERKE LIMITED
ANNUAL REPORT 1999-2000
The Directors hereby present the ELEVENTH ANNUAL REPORT together with the
AUDITOR'S REPORT of the Company for the year ended 31st March 2000.
In view of the losses incurred by the Company your Directors do not
recommend payment of Dividend for the year ended 31st March 2000.
During the year under review, the company's operations were severely
affected due to lack of working capital funds. The company's bankers Canara
Bank, have adopted a non cooperative attitude towards the company's efforts
to sort out the finance problems. Your company's various proposals for
revival of the company's Credit Facilities with the said bank were not
considered favourably by the bank which has ultimately led to the recall of
the total advances by the bank.
On account of the working capital crunch, your company's turnover has
declined sharply to Rs. 360 Lacs as against Rs. 649 Lacs in the previous
year. Due to lower turnover and increasing costs, overheads and interest
burden, your company has incurred a Net Loss of Rs. 194.25 Lacs in the year
Your directors are making all possible efforts to overcome this difficult
period by taking necessary steps to induct funds in the business. It may be
noted that the company continues to enjoy a very good brand loyalty and has
a very healthy order book position on hand. If the required funds are
inducted in the business, your directors are confident that the company
will be able to turn around and start earning profits in near future.
As stated earlier, the company's bankers CANARA BANK have recalled the
entire working capital facilities that were granted by the bank to the
company. Your directors are continuing discussions for revival of the
facilities with the bank.
Due to the heavy lossess incurred by the company in the past three years
and the resultant financial difficulties faced by the company, your company
has defaulted in repayment of unsecured loans of Rs.65 Lacs which have
fallen due for payment. One of the depositors who has placed a deposit of
Rs.10 Lacs has filed a winding up petition against the company in High
Court at Mumbai. Other depositors for Rs.55 Lacs have also served legal
notice on the company for recovery of their deposits.
Some of the creditors for supply of raw materials etc. have also served
legal notices for recovery of their dues from the company. In some cases,
proceedings under Section 138 of the Negotiable Instruments Act have also
been launched against the company and its Directors.
EROSION OF NET WORTH BY MORE THAN 50%
Your director have to report that the company's net worth has eroded by
more than 50% of the peak net worth during the preceding four years In
accordance with the provisions of section 23 of the Sick Industrial Under-
takings (Special Provisions) Act, members are requested to take a note of
the erosion of the net worth of the company as per the resolution set out
under item no. 7 of the Notice of the 11th Annual General Meeting. The
reasons for the erosion of net worth and steps proposed to be taken o
revive the company are set out in details in the explanatory statement
annexed to the Notice of the 11th Annual General Meeting
Shri Tushar Patel and Shri Rakesh Patel, Whole Time Directors of the
company have resigned with effect from 24th June, 2000. Your Board of
Directors have placed on record their sincere appreciation for the valuable
services rendered by them during their association with the company. Smt.
Divyaprabha Patel was appointed as an additional director by the board with
effect from 28th June, 2000 and she holds office upto the ensuing Annual
General Meeting pursuant to the provisions of section 260 of the Companies
Act, 1956. The company has received notice from a member pursuant to
section 257 of the Companies Act, 1956 with the amount of deposit of Rs.500
as prescribed under the said section, proposing to appoint Smt. Divyaprabha
Patel as the Director of the company Your Board of Directors recommend the
relevant resolution for your approval. The tenure of appointment of Shri
J.S.Patel as the Managing Director of the company has expired on 31st
December, 1999. Your Board of Directors have reappointed him as the
Managing Director for a further period of five years from 1/1/2000 to
31/12/2004 subject to your approval. Members are requested to approve the
resolution as set out in the Notice of the 11th Annual General Meeting.
Shri Dinesh Patel and Shri Manhar Patel, Directors retire by in ion ar
being eligible offer themselves for reappointment.
Present auditors M/s. ARVIND RAMAN & VIJAY retire at the conclusion of the
ensuing Annual General Meeting and the Company has received confirmation
from the Auditor regarding their availability if reappointed. Your
Directors recommend their reappointment.
Observations made in the Auditor's Report read with the relevant notes
forming part of the accounts are self explanatory and therefore do not call
for any further comments under section 217 (3) of the Companies Act, 1956.
Your Company's operations have rolled to the new millennium in a smooth
manner without any Y2K problem.
LISTING OF EQUITY SHARES
The Company's shares are listed to Bombay & Ahmedabad Stock Exchange and
listing for the year 1999-2000 have been paid. The listing fees for the
year 2000-2001 have yet to be paid.
PARTICULARS OF EMPLOYEES
Your Company does not have any employee drawing remuneration in excess of
the limits prescribed under the provision of section 217 (i) (e) of the
Companies Act 1956 read with the Companies (Disclosure of Particulars in
the Report of Board of Directors) Rules, 1988.
INFORMATION REGARDING ENERGY CONSERVATION ETC.
The information required under section 217 (1) (e) read with the Companies
(Disclosure of Particulars in the Report) Board of Directors Rules 1988 is
1. Conservation of energy and fuel is regarded as one of the priority item
for the Company's plans for cost reduction and suitable measures an being
taken in that directions as an ongoing exercise.
2. The Company has not spent any amount on Research & Development However,
developmental work on new products and improving the, quality of the
existing product range is being carried on regular basis.
3. Earnings in Foreign Exchange : Nil
Your Directors wish to place on record their appreciation of the valuable
support and co-operation received from the Company's Clients. and Sub
pliers. The Directors also wish to express their appreciation for the
dedicated services rendered by the employees of the Company at all levels.
BY ORDER OF THE BOARD OF DIRECTORS
DATE: SEPTEMBER 4, 2000
REGISTERED OFFICE: Survey No. 193, Hissa No13, Old Ghodbunder Road (East)
Dhodbunder Village DIST THANE 401 104
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