EASTERN MINING & ALLIED INDUSTRIES LIMITED
Your directors have pleasure in presenting the 13th Annual Report of the
Company together with the audited account for the financial year 1997-98.
The national & international coal market is passing through a very bad
recessionary phase and the Meghalaya Coal Industry has been badly affected
by the same. The demand of the Meghalaya Coal has fallen due to import of
coal from the foreign market resulting from the reduction in import duty on
coal effected by the Central Government and the liberal credit terms
offered by the foreign suppliers. In spite of this, your Company could
achieve an increase in turnover from Rs.2002.70 lacs to Rs.2245.43 lacs
which is fairly satisfactory, but the profit has taken a dip due to
increase in inputs without commensurate increase in price realisation. Now
your Company is trying to explore alternative avenues so as to make its
coal competitive in the national as well as in the international market.
In view of the sluggish coal market, the Company is proposing to commence
the transport business in order to optimise the use of the existing
resources of the Company. For this purpose a special resolution has been
placed before the Annual General Meeting of the Company.
Your Directors do not recommend any dividend on the equity shares. The cash
accruals are being ploughed back which we believe will ensure better
returns to the shareholders in time.
During the period under review your Company could export coal to the tune
of US $ 84,700 only due to the adverse market condition as mentioned above.
During the year Mr. M. S . Jayaram was re-appointed as the Managing
Director of the Company for another 5 years in accordance with the
provisions of 198,269 and 309 read with the schedule XIII and other
applicable provisions of the Companies Act,1956 by the Board of Directors
of the Company and the necessary resolution has been placed before the
members of the Company in the ensuing Annual General Meeting of the Company
for their kind approval.
In accordance with the provisions of Section 256 Of the Companies Act,
1956, Dr.K.S.Narsimhan retires by rotation and being eligible, offers
himself for re-appointment.
Mr. Kelbiwol Tong who was appointed as an additional Director of the
Company during the year pursuant to section 260 of the Companies Act,1956,
vacates office at this Annual General Meeting. Notice under section 257 0f
the Companies Act,1956 has been received from some members of the Company
signifying their intention to propose the appointment of Mr. Kelbiwol Tong
as a Director of the Company, who will be liable to retire by rotation.
During the year under review, Mr. Raymond Bareh, vacates the office of the
directors pursuant to section 283(1)(g) of the Companies Act,1956.
Transfer of the Unpaid Dividend to the General Revenue Account:
During the year under review an amount of Rs.9,03,911 /- relating to the
dividend for the financial year 1993 - 94 was transferred to the General
Revenue Account of the Central Government which remained unpaid in
pursuance of the Section 205A(5) of the Companies Act,1956.
M/S Ratan & Associates, Chartered Accountants retires at the ensuing Annual
General Meeting and are eligible for appointment. They have furnished their
eligibility in terms of Section 224(1 B) of the Companies Act,1956.
The Auditors in their report referred to the notes forming part of the
accounts which are self-explanatory and do not require further elucidation.
PARTICULARS OF EMPLOYEES:
There are no employees who are in receipt of remuneration in excess of the
limits specified under section 217(2A) of the Companies Act,1956.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN
EXCHANGE EARNING AND OUTGO:
Information pursuant to section 217(1)(E) of the Companies Act,1956 read
with the Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988, are set out in the Annexure and forms part of this
During the year under report the Company did not accept any fixed deposits
from the public. During the year all the outstanding fixed deposits matured
except one which was renewed during the year.
Your directors wish to place on record the assistance granted by the
Company' s Banker to the Company and the co-operation extended by the
various department of the Central & State Government, the shareholders, the
employees of the Company and all other parties concerned with the Company.
FOR & ON BEHALF OF THE BOARD
OF DIRECTORS OF THE COMPANY
Place: Shillong (T. S. Bareh)
Date : 10.08.98 CHAIRMAN