DYNAVOX INDUSTRIES LTD
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
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.
In addition to our existing range of products Copiers & FAX with Overseas
Association, the current ranges will be upgraded taking into consideration
Upgraded Technologies and Strong Overseas Association for technical
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
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.
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.
Barclay Association Corp., Tokyo
Multi Media Colour Monitor: For reorganising of our existing Colour Monitor
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
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.
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.
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
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/-.
Mr. M. K. Jain, Director of the Company retires by rotation and being
eligible offers himself for reappointment.
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.
Directors wish to recommend the appointment of Branch Auditors for its
Regional/Divisional office located at Delhi, Calcutta, Madras, Hyderabad
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.
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.
Provision for commission payable to the Managing Director has not been
provided during the year.
The Company's management is arranging to bring in additional funds to
increase the promoters contribution and to repay the outstanding loans to
The company's management has taken steps to implement all the
recommendations made by the Stock Auditors in their report submitted to our
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
115, T.V. Industrial Estate,
Worli, Mumbai - 400 025.
Dated : 7th December 1998,
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
For and on behalf of the Board of Directors
W. T. BALAJI
Mumbai : 7th December. 1998 Managing Director