GREAT WESTERN INDUSTRIES LIMITED
To the Members,
The Directors have pleasure in presenting the Sixth Annual Report of the
Company together with the Audited Balance Sheet as at 30 th September 1998
and the Profit and Loss Account for the year ended on that date.
The Company presently exports gherkins and white onions. Whilst for
gherkins the Company has an extension program where in the Company selects
farmers, provides seeds, fertilizers, pesticides and other advances added
with technical inputs regarding timing of sowing, plucking etc., for white
onions it buys in bulk from the market.
The Company's products are exported to Australia, France, Belgium, Spain,
United Kingdom, Netherlands, Holland, United States of America, Canada and
Philippines and all the Company's customers are ECGC cleared. The Company
processes in all mediums viz. Natural Imported Vinegar, Brine or Acetic
acid as per Individual receipes of the foreign buyer.
The Company's turnover increased by 2.77 times compared to last year. This
was possible due to a tie up with NV Intergarden S A, Belgium for supply of
gherkins in bulk where the Company received advance payments for the same.
The Company has set up during the year a new plant near Tirunelveli,
Tamilnadu to cater to the growing export markets and the increasing demand
of the foreign buyers and also increased its scale of operations of the
Bangalore unit. The Tirunelveli plant was set up during the year and
commenced commercial production on 1 .10.1997. The Tirunelveli factory has
a total 70,000 sq. feet built up area of processing and storage space and
is as per F.P.O. and international standards and has also been recognised
by L.M.A. (Amora Maille, Group, Danone, France)
The Company has acquired a recognised Export House Status from the
Government of India for a period of 3 years upto 31/3/2001 and is eligible
for all benefits accorded to a recognised export house.
The Company's expansion program was also increased to cover Tirunelveli and
other areas. The Company has experienced field managers, field officers,
field assistants, buyers and classifiers to look after the field operations
and extension program in herkins.
The Company has repaid all the term loans to the Bank and Net Profit
before/after tax has increased by over 5 times. The Company plans a payout
on dividend of 10% for the current year.
At a time when the whole Country is going through a tremendous economic
slowdown, the foreign / export demand for processed food especially
gherkins is increasing world wide. Gherkins are consumed in (a) salads, (b)
starters, (c )pickles, (d) addendum to hamburgers etc and is a speciality
delicacy and a dietary food too. The Company plans to set up more gherkins
processing centres as well as one more production facility . The company
also plans to make forays into export of other processed vegetable like
baby corn, carrots, paprika, green peppers, cauliflower and mango pulp and
has already received enquiries and trial orders from some of the above. The
Company plan to get into bottling and canning once complete marketing is
tied up from the foreign buyers.
Employee relationship continued to be cordial during the year.
The Company has not accepted any Fixed Deposits from the Public during the
year, hence there were no unclaimed / outstanding deposits as on 30th
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
The information required under Section 217 (1) (e) of the Companies
Act,1956 read with the Companies (Disclosure of Particulars in the Report
of the Board of Directors) rules, 1988 is annexed hereto and forms part of
Mr.M.Narayanan Dr.D.Ashok and Mr.Peeroz.S.Hataria are appointed as
additional Directors of the Company.
Your Board of Directors are happy to inform you that, a 10% Dividend for
the financial year 1997-98 is recommended to be paid tn all the members
whose name appear in the Register of Members as on. 11/12/98.
There is no employee who was in receipt of remuneration of more than
Rs.25,000/- per month or part thereof or Rs.3,00,000/- per annum in the
M/s Srinaga & Giridhan, Chartered Accountants, Bangalore, Auditors of the
Company retire at the ensuing Annual General Meeting and offers themselves
The Company's share are presently listed with
A) Madras Stock Exchange : No.11,Second Line Beach,
B) Stock Exchange of Mumbai : Phiroza JeejeeBhoy Towers,
: Dalal Street,
: Mumbai 400001
C) Bangalore Stock Exchange : Bangalore Stock Exchange
: UNI Building Millers Tank
: Vasanth Nagar
: Bangalore 560052
The Board wishes to place on record its appreciation to all the farmers,
workers and Executives of the Company, and the Bankers for their valuable
support and look forward to their continued co-operation and support in the
growth of the Company.
On behalf of the Board on behalf of the Board
Date :30th December 1998
ANNEXURE - TO DIRECTORS' REPORT
Statement under Section 217 (1) (e) of the Companies Act, 1956, with
Companies (Disclosure of Particulars in the Report of the Board of
Directors) Rules,1988, and forming part of the Directors Report for the
period ended 30th September 1998:
A. CONSERVATION OF ENERGY:
Whenever possible energy conservation measures are being taken and
implemented by the Company.
B. TECHNOLOGY ABSORPTION:
Research and Development (R & D)
The Company has its own in house research unit manned by qualified and
experienced professionals. The unit carries on research and development in
specific areas of upgrading the growing and processing of gherkins and
onions and standardization of quality control measures.
Technology Absorption, Adaption and Innovation
1. Continuos efforts to upgrade and improve technology has been made in all
areas of operation of the Company.
2. The Company has obtained imported technology which has been fully
C. FOREIGN EXCHANGE EARNINGS AND OUTGO:
The foreign exchange earnings during the year under report stood at
Rs.730.72 lacs. The foreign Exchange outgo was Rs.3.92 lacs. The main
activities relating to export were to increase exports, development of new
export markets for existing and new products.