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Dynavox Industries Ltd.

BSE: 517508 Sector: Others
NSE: N.A. ISIN Code: N.A.
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Dynavox Industries Ltd. (DYNAVOXINDS) - Director Report

Company director report

DYNAVOX INDUSTRIES LTD DIRECTORS' REPORT The Members Your Directors have pleasure in presenting their Fifteenth Annual Report alongwith Audited Accounts for the year REVIEW OF BUSINESS OPERATIONS OF 11 E YEAR 1997-98 Despite depressive conditions prevailing in the market during the year under review, all the main business operations of the Company i.e. Marketing and Servicing of Office Automation and Telecom communication products fared to the satisfactory level. The liberalised policies announced by the Central Government has contributed for increase in the competition and resulting in drastic reduction of selling prices and margins. During the year. due to unfavourable conditions continuing in the market, non realisation of receivables increased Interest cost. the profitability of the Company has been affected to a considerable extent. The Company's management has made all efforts to implement the business plans as mentioned in 1-he prospectus released during the Public Issue and has taken some strategic decisions to implement new plans in the year 1999. PRODUCT PROFILE In addition to our existing range of products Copiers & FAX with Overseas Association, the current ranges will be upgraded taking into consideration the following: Better Margins. Upgraded Technologies and Strong Overseas Association for technical support. Reviewing the above products available for the year 1998-99. the introduction of new products taking into account various marketing needs for quick delivery in terms of Sales, funds realisation and new customer profiles. TECHNICAL COLLABORATION ARRANGEMENT The Dynavox has technical and marketing collaboration arrangements with the following foreign Companies Hyundai Of South Korea. The Dynavox MOU with Hyundai for selling and servicing their Telecommunication products including their economy fax models. Cordless Phones. Colour Monitors & CB Radios. Kenwood, Japan; The Dynavox has an association with Kenwood, Japan (the Company earlier was the Nation-wide Authorized Service Agents for the top of the line Kenwood Audio Equipment) for marketing their VHF/UHF transreceivers manufactured in India by Punwire (l) Ltd. Technology & Product sourcing MOU with Telecom Technology Ltd., Hongkong, for giving the necessary support to source our well defined new generation product range. Comytel, U.S.A. DYNAVOX has negotiated for range of Telephone Answering machines. The basic models have been test marketed with successful results. The product is in association with Comytel, U.S.A. Bell South Western (Canada) The range of high power cordless phones with basic models and for the first time Introduction in our country of cordless phones with Digital Answering machine built in. This range of products are In association with manufacturer of BELL South Western Products (Canada). Smith Carona ( U.S.A.) Dynavox is also being associated with SMlTH CARONA (U.S.A) for SOHO (Small Office Home Office) equipment's targeted specially at high profile professionals to operate their own office but need highly featured oriented latest technology equipment. NEW PROJECTS Barclay Association Corp., Tokyo Multi Media Colour Monitor: For reorganising of our existing Colour Monitor project. Considering the expanding growth of computers into multi media area Dynavox has association with Japan based company for multi media 15 high resolution monitor which are our next generation products called for growing computer users. This is in association with Barclay Association Corp., Tokyo, Japan. Initially these models will be imported in Dynavox brand name and subsequently as a part of our colour monitor proJect. These will be assembled locally in India possibly by the end of the current financial year. The ECB fund arrangements are being made for finalising the colour monitor and other new project. Needle Inclnerator Corp., UK: Medical Electronic products. Entry in super high demand Medical Electronic product, Needle Incinerator. Dynavox is tied up Rahan Telecom, Global associates of NIC (Needle Incinerator Corp., UK) whose product Needle Incinerator" is having a world- wide patent for safely disposing needles which may carry contamination of Aids / Hepatitis after use. This project has been approved by FDA (Food & Drug Admn., USA) and has the support of WHO (World Health Organisation) who are willing to fund the project for distribution in various developing countries. "N-SAT": Dynavox is launching a new Division National School of Advance Technology', (N-SAT) with the objective of providing professional technical training in Servicing or Automation Products like Copiers, FAX, EPABX etc. to Fresh Diploma holders from Technical Institutes. The project is being launched in BOMBAY during January, 1999 and later in CALCUTTA, DELHI and MADRAS. The objective of this is to provide service engineers with practical experience. to the Telecommunication & office automation industry also for our own in house Expansion of Service Operation Nationally. EXPORT TRADE DIVISION The performance of this division during the year 1997-98 was also affected due to recessionary trends prevailing in the trade and also due to inordinate delay in realising the Export Sales Proceeds. Considering the benefits available, the management is planning to step-up the turnover and also the margin on export trade during the current year. DIVIDEND In view of the losses incurred by the Company during the year. the Directors have not recommended any dividend disbursement for the year CHANGE IN THE NAME OF THE COMPANY The change in name of the Company to `DYNAVOX INDUSTRIES LTD' was considered unanimously at the 14th AGM of the company and the Registrar of Companies in Maharashtra issued approval to the change OF name FIXED DEPOSIT During the year under review. the Company has accepted the Fixed Deposit from Public to part finance its Working Capital requirements. The Company has complied all the provisions of Company's Act 1956 and also the provision of the Company's Acceptance of Deposits Rules, 1975 and there are no overdue deposits outstanding as of 31 st March 1998 other than unclaimed deposits amounting to Rs. 82.000/-. DIRECTORS Mr. M. K. Jain, Director of the Company retires by rotation and being eligible offers himself for reappointment. AUDITORS M/s. Shankarlal Jain and Associates, the Statutory Auditors of the Company will retire at the ensuing Annual General Meeting and being eligible offer themselves for reappointment. BRANCH AUDITORS Directors wish to recommend the appointment of Branch Auditors for its Regional/Divisional office located at Delhi, Calcutta, Madras, Hyderabad and Mumbai. NOES TO ACCOUNTS 8 COMMENTS OF STATUTORY AUDITORS Adequate explanations on the comments of the Statutory Auditors have been provided and clarified in the notes to Accounts, forming part of Annual Accounts for the year under review and efforts are being made to comply all the requirements stipulated by the Statutory Auditors in their report. ENERGY, TECHNOLOGY AND FOREIGN EXCHANGE Information in accordance with provisions of section 217(1)(e) of the Companies Act 1956. read with Companies (disclosures of particulars in the Report of Board of Directors). Rules 1988 regarding conservation of energy, technology absorption and foreign exchange earnings and out-go is given in Annexure I forming part of the report. PERSONNEL Information as required under Section 217 (2A) of the Companies Act. 1956, read with Companies (Particulars of Employees) Rules 1975, Annexure ll forms part of the Report. MANAGERIAL REMUNERATION Provision for commission payable to the Managing Director has not been provided during the year. BANK BORROWINGS The Company's management is arranging to bring in additional funds to increase the promoters contribution and to repay the outstanding loans to the Banks. STOCK AUDIT The company's management has taken steps to implement all the recommendations made by the Stock Auditors in their report submitted to our bankers. ACKNOWLEDGEMENTS Directors wish to place on record their profound appreciation for the co- operation extended by Contractors. Suppliers, Bankers, Financial Institutions & Business Associates of the Company. For and on behalf of the Board of Directors W. T. BALAJI MANAGING DIRECTOR Regd Office: 115, T.V. Industrial Estate, 248.S.K.Ahire Marg. Worli, Mumbai - 400 025. Dated : 7th December 1998, ANNEXURE I INFORMATION AS REQUIRED UNDER SECTION 217(1) (e) OF THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988 & FORMING PART OF THE DIRECTORS' REPORT FOR THE YEAR ENDED 31ST MARCH,1998 A. CONSERVATION OF ENERGY: Energy Conservation measures taken. The Company is engaged in marketing and servicing, Office automation and telecommunication products nevertheless Company's management attaches due importance for conservation of energy for the purpose of regular and preventive maintenance of electrical equipments and prompt measures are undertaken by the Company. The various steps taken up for energy savings include better control over electricity consumption. using of energy saving equipments and effective installations in service centres. Periodical survey is being made to identify new methods for efficient use of energy and its utilities in providing efficient service to Company's customers . B. TECHNOLOGY ABSORPTION: Your Company has already absorbed the state of the art technology in servicing the office automation and telecom products, This has helped the Company to extend a quality services to its Customers and also increase revenue income from its services. C. FOREIGN EXCHANGE: The information on foreign exchange earning and outgo are contained in notes to the accounts forming part of accounts for the year. For and on behalf of the Board of Directors W. T. BALAJI Mumbai : 7th December. 1998 Managing Director