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Gujarat Inject Ltd.

BSE: 524001 Sector: Health care
NSE: N.A. ISIN Code: N.A.
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Gujarat Inject Ltd. (GUJINJECT) - Director Report

Company director report

1996 GUJARAT INJECT LIMITED DIRECTORS' REPORT Your Directors have pleasure in presenting the 10th Annual Report alongwith the Audited Statement of Accounts for the year ended 31st March, 1996. REVIEW OF WORKING AND OPERATIONS: Your Company could achieve the turnover of Rs. 661.66 lacs as against Rs. 1258.53 lacs in the previous year. During the year under review the company cannot carry on its production's activities from December, 1995 due to forced closure of the factory by the ordering Honourable High Court of Bombay, under the following circumstances. The Company was finding it difficult to sustain its market share due to unhealthy competition by rival IV fluid manufacturers. As per the agreement with BOI Finance Ltd., the Company had to pay Rs. 65.00 lac for regularisation of its lease transactions during the year under review. Due to financial constraint, the Company could not pay the agreed amount of Rs. 65.00 lac and BOI Finance Ltd. resorted to legal action against the Company. As per the Orders of the Hon'ble High Court of Bombay, an amount of Rs. 4.00 crore had to be deposited immediately but the Company found it too difficult ot comply with the Hon'ble Court's orders and the Court Receiver impounded the leased machineries and equipments. The Management was compelled to close the entire production activities since December, 95 owing to impounding the main machineries and equipments by dissecting the entire connections. The total net worth of the Company as on 31.3.1995 was Rs. 768.12 lac. The harsh action taken by BOI Finance Ltd. lead to the closure of the plant and thereby heavy losses. This compounded with the demands made by BOI Finance Ltd. turned the Company into a Sick Industrial Company under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985. This made it obligatory for the Board to make a reference to the Board of Industrial Finance Reconstruction. Various revial plans are being worked out and your Directors are confident that the Company will start its operations within a short period and earn profit thereafter. FIXED DEPOSITS In terms of Company's (Acceptance of Deposits) Rules 1975, we report that there is matured but not claimed deposit of Rs. 6.47 lacs as at 31st March, 1996. Your Company pursued rules and regulatory provisions for acceptance of Deposits. INSURANCE All the properties and insurable interest of your company including buildings, plants, machinery and stocks, wherever necessary and to the extent required have been adequately insured. DIRECTORS Shri Y.R. Mankodi, Dr. H.S. Jana Directors retire at the ensuing Annual General Meetings and are eligible for re-appointment. PARTICULARS OF EMPLOYEES As required by the Provisions of Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 (as amended, there is no employee getting more than Rs. 3,00,000/- during the Financial year if employed for whole year and Rs. 25000/- per month, of employed during part of the year. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS 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 is given in Annexure b to the Report and forms part of the same. AUDITORS' REPORT The notes forming part of the accounts are self-explanatory and do not call for any further clarification under section 217 (3) of the Companies Act, 1956. AUDITORS Members are requested to appoint Statutory Auditors to hold the office from the conclusion of the ensuing annual General Meeting and fix or authorize the board to fix their remuneration. Messrs P.B. Shukla & Co., Chartered Accountants, retire Statutory Auditors of the Company offer themselves for re-appointment. They have furnished a certificate to the effect that their re-appointment, if made, will be in accordance with the provision of Section 224(B) of the Company's Act, 1956. ACKNOWLEDGEMENTS The Board place on record their grateful appreciation of the wholehearted co-operation and assistance extended by Financial Institutions, Banks, Government authorities, Shareholders and Associates. Your Directors also wish to place on record their deep sense of appreciation of the devoted services rendered by the employee of the company at all levels for the success. ANNEXURE B TO THE DIRECTORS' REPORT Information regarding conservation of energy, technology absorption and foreign earning and outgo required to be furnish pursuant to the Companies (Disclosure of Particulars in the report of the Board of Directors) Rules, 1988 and forming part of the Directors' Report for the year ended 31st March, 1996. A. CONSERVATION OF ENERGY a. Energy Conservation measures taken Stringent standards for conservation of energy are enforced in the entire plant. Leakage of steam is minimised by making all the pipelines leakproof. b. Additional investment and proposals, if any, being implemented for reduction of consumption of energy: NIL c. Impact of the measures at (a) and (b) above for reduction of energy consumption and consequent impact on the cost of production of goods: Measures taken for minimising leakage of steam have resulted into maintaining the cost of steam at minimum level. d. Total energy consumption and energy consumption per unit of production as per Form - A of the Annexure in respect of industries specified in the Schedule there to. Details of total energy consumption and energy consumption per unit of production are given in Form - A hereunder: B. TECHNOLOGY ABSORPTION: e. Efforts made in technology absorption as per Form - B.: The relevant information is given Form - B hereunder. C. FOREIGN EXCHANGE EARNINGS AND OUTGO: f. Activities relating to exports, initiatives taken to increase exports, development of new markets for products and services and export plans: The Company's IV fluids have been well received in the export markets. The standards and quality of FIL products have received good acceptance and response. The strategy of selecting a few areas and concentrating on those areas has started paying good dividends. This has resulted in and increasing core of business potential combined with the better price realizations. On the export front, the overall performance of the Company is expected to be one of the front runners from India in next few years. g. Total foreign exchange used and earned: During the year under review, the Company has earned Rs. 69,16,411/- from exports and has spend Rs. 86,04,856/- in foreign exchange for import of raw materials and towards export promotion expenses. FORM - A Form for disclosure of particulars with respect to conservation of energy. A. POWER AND FUEL CONSUMPTION : Current Year Previous Year 1. Electricity a] Purchased Units 4,34,212 7,03,980 Total Amt. (Rs.) 13,29,289 19,33,789 Rate/Unit (Rs.) 3.06 2.75 b] Own Generation i) Th. Diesel Generation units 7,015 4,833 Units per Ltr. of Diesel Oil 1.27 1.35 Cost/Unit (Rs.) 7.90 8.00 ii) Th. Steam Turbine/Generator NIL NIL 2. Coal (Specify quality and where used) NIL NIL 3. Furnace Oil Quantity (K. Ltrs.) 111 211 Total Amount (Rs.) 4,75,774 11,72,865 Average Rate (Rs.) 4.27 5.57 4. Other/Internal Generation NIL NIL B. CONSUMPTION PER UNIT OF PRODUCTION Standards Current Year Previous Year [if any] Production (with details) Units: i) IV solutions in disposable plastic containers -- 30,18,362 7,18,899 ii) Haemodialysis concentrate jars -- -- -- iii) Electricity Per Unit 0.14 Unit 1.12 Unit of IV Solution Furnace Oil --do-- 0.10 Ltr. 0.04 Ltr. Coal (Specify qty.) -- NIL NIL Other (Specify qty.) -- NIL NIL FORM - B For Disclosure of particulars with respect of absorption, research and development. 1. Specify areas in which R & D ---| carried out by the company | | 2. Benefits derived as a result | The Company is in the process of the above R & D | of putting up a Research and | Development Unit and therefore 3. Future Plan of Action | no information is available in | reply of these points ( 1 to 4. Expenditure on R & D | 4) a] Capital | b] Recurring | c] Total | d] Total R & D expenditure as | a percentage of total | turnover ---| TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION 1. Efforts in brief, made towards technology absorption, adaptation and innovation: The Company has been employing the latest technology as used in the European countries for manufacture of intravenous transfusion fluids. 2. Benefits derived as a result of the above efforts e.g. product improvement, cost reduction, product development, import substitution etc.: As the time span is short since the Company started commercial production, no information is available regarding the above. 3. In the case of imported technology (imported during the last 5 years reckoned from the beginning of the financial year) following information may be furnished: a] Technology import ---| b] Year of import | c] Has technology been fully absorbed? | Not applicable as the d] If not fully absorbed, areas where this | Company has not been has not taken place reasons thereof and | using imported any future plans of action. ---| technology. For and on behalf of the Board of GUJARAT INJECT LIMITED YOGESH MANKODI CHAIRMAN Place : Baroda Date : 20th June, 1996.