Dravya Industrial Chemicals Ltd.
||ISIN Code: N.A.
05:30 | 01 Jan
Dravya Industrial Chemicals Ltd
05:30 | 01 Jan
Dravya Industrial Chemicals Ltd
Dravya Industrial Chemicals Ltd. (DRAVYAINDLCHEM) - Director Report
Company director report
DRAVYA INDUSTRIAL CHEMICALS LIMITED
Your Directors have great pleasure in presenting to you the Thirteenth
Annual Report of your Company alongwith Audited Statement of Accounts for
the year ended 31st March, 1998.
REVIEW OF PERFORMANCE
Despite a marked increase in the sales, your Company incurred a net loss of
Rs.268.28 lacs during the year under review. This was mainly due to the
rise in expenses under certain heads. The Company's profit further eroded
by Rs. 342.62 lacs due to hike in foreign exchange rate during the year
under review The bank charges commission and rent, rates taxes are more
than double during the year. There was steep rise in expenses under the
head 'Electricity Charges B others'. Loss on sale of investment was 2.5
times that suffered during previous year
On the income side, interest received during the year was lower by about
Rs.1.20 Crores, while dividend received was negligible. Insurance claims
received recorded a steep fall as compared to the previous year.
We have taken some drastic steps to improve the position of the company.
The effect of these steps will be reflected during the current fiscal.
In accordance with the provisions of Section 256 of the Companies Act, 1956
and Article No.100 read with Article 102 of the Articles of Association of
the Company, Ms. Neeta H. Desai retires by rotation at the fortheoming
Annual General Meeting and being eligible offer herself for reappointment.
The Board is of the opinion that the continuance of Ms. Neeta H. Desai on
the Board of Directors will be in the interest of the Company.
Mrs. Uma K. Jhaveri has resigned as Director of the Company with effect
from 10th September, 1998. The Board places on record the services rendered
by her during her tenure as Director of the Company.
M/s. A. C. Matalia B Co., Chartered Accountants, hold office till the
conclusion of the ensuing Annual General Meeting. The Company has received
a letter from them to the effect that their appointment, if made, would be
within the prescribed limits of Section 224(1 B) of the Companies Act,
1956. Accordingly the said Auditors will be eligible for appointment as
Auditors of the Company
The notes to the Accounts referred to in the Auditors' Report are self
explanatory and therefore do not call for any further comments.
The Company has been accepting deposits rom public and shareholders. Total
amount of Fixed Deposits accepted during the year were Rs.46.10 Lacs. There
is no deposit which is matured but not claimed or which is matured and
claimed but not paid.
PROMISES VS. PERFORMANCE (IN TERMS OF CLAUSE 43 OF LISTING AGREEMENT)
Your Company had given the profitability projection as Total Income
Rs.23763.71 Lacs and Profit after Tax as Rs.2214.91 Lacs as projected in
the Prospectus dated 4th April,1994 against which the Company could achieve
Total Income Rs.9024.61 Lacs l; incurred a Loss of Rs.268.28 Lacs.
Due to the reasons as mentioned under the head 'REVIEW OF PERFORMANCE',
your Company could not achieve the projected result.
PARTICULARS OF EMPLOYEES AS REQUIRED UNDER SECTION 217 (2A) OF THE
COMPANIES ACT, 1956 READ WITH THE COMPANIES (PARTICULARS OF EMPLOYEES)
There is no employee covered by Section 217 (2A) of the Companies Act, 1956
read with the Companies (Particulars of Employees) Rules, 1975.
DISCLOSURE OF PARTICULARS
Information as per the Companies (Disclosure of Particulars in the Report
of Board of Directors) Rules, 1988 relating to conservation of energy,
technology absorption, foreign exchange earnings and outgo is given in
Annexure "A" forming part of this report.
The Company continued to maintain harmonious and cordial relations with its
workers in all its divisions.
The Directors wish to place on record their thanks to the Government
Authorities (Central and State), Financial Institutions, Bankers and Other
Business Associates and Shareholders for the co-operation and encouragement
extended to the Company The Directors also place on record their deep
appreciation of the contribution made by the employees at all levels.
For and on behalf of the Board of Directors
PLACE : MUMBAI B. M. PATEL
DATE : 27TH NOVEMBER, 1998 DIRECTOR
ANNEXURE "A" TO DIRECTORS' REPORT
PARTICULARS AS REQUIRED UNDER THE COMPANIES (DISCLOSURE OF PARTICULARS IN
THE REPORT OF BOARD OF DIRECTORS) RULES, 1988.
(A) CONSERVATION OF ENERGY
Considerable emphasis is given to improve the quality of the products,
energy saving and controlling waste.
(B) TECHNOLOGY ABSORBTION N. A.
(C) FOREIGN EXCHANGE EARNINGS/ OUTGO
Foreign Exchange Earnings Rs. 1969.81 Lacs
Outgo Rs. 7278.59 Lacs
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