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Hydroflex Equipments Ltd.

BSE: 531818 Sector: Engineering
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Hydroflex Equipments Ltd
NSE 05:30 | 01 Jan Hydroflex Equipments Ltd

Hydroflex Equipments Ltd. (HYDROFLEXEQUIP) - Director Report

Company director report

1997 HYDROFLEX EQUIPMENTS LIMITED DIRECTORS REPORT Your Directors have the pleasure in presenting the Ninth Annual Report together with the audited accounts of the company for the Year ended 31st March 1997. Financial Results for the Year Current Year Previous Year Rs. In Lacs Rs. In Lacs Sales 331.89 383.31 Profit before Interest, Depreciation & Taxation 62.68 65.95 Interest 42.89 23.23 Depreciation 5.80 4.73 Provision for Taxation 4.00 10.00 Net Profit 9.99 27.99 PRESENT BUSINESS OPERATIONS The Company's turnover decreased from 383.31 Rs. Lacs to Rs. 331.85 Lacs due to general recession and strike, which affected the production for almost 4 months. Your Company has further consolidated its market network and with lots of association with Dealers and Liaison Agents we are finding marked improvement in getting their requirements and due to which there has been increase in the Market share and which may improve further. The total economy is in grip of Recession and we have been able to achieve turnover due to support of our valued customers and the co-operation of our Dealers & Liaison Agents. Your Company has already ventured in the Export Market and has been receiving inquiries and we hope to bag some Export orders. We are forwarding sample of our products to be displayed at Uganda International Trade Fair which is being held from 7th to the 12th of October 1997. Your Company had faced Labour Unrest and Strikes from July '96 and the matter at present is with the Industrial Tribunal. The Company has recruited a new team of workers and they are being trained. The production and functioning of our unit has now stabilised. The Company's Shares are listed at various Stock Exchanges like Mumbai, Mangalore Hyderabad and Ahmedabad. PROTECT IMPLEMENTATION The Project was proposed to start Commercial Production tentatively by December 1997 but due to the in-ordinatete delay in getting Industrial Land from Goa Daman & Diu Industrial Development Corpn Ltd., Panjim (Goa) the project could not commence as planned. We are following up with the authorities of G.D.D.I.D.C and hope to et the land tentatively by December 1997, The Project cost has gone up due to the in-ordinate delay and we proposed to off load some job work with vendors to cut down some of the machineries. We are acquiring a shed to start the activities although in a small way Hydraulic Products Division. FUTURE OUTLOOK The globalisation of the Indian Economy, has thrown open the challenges to the Domestic Manufacturers and we hope that when the creation of Infrastructure starts this Industry would get substantial growth. We have a strong and diversified Customer base and with our manufacturing capabilities we expect to get tremendous growth in the coming years. We, have developed vendor to supply our components and these would be an asset to us in the Hydraulic Products Division. We are making efforts to export our products and we hope to have a substantial growth in this area in the coming years. Your Directors recommend 5% dividend, to be paid on pro-rata basis on the equity share capital of the Company as at 31-3-97. LISTING REQUIREMENT The cash flow statement is attached pursuant to clause 32 of the listing agreement. SUBSIDIARY COMPANY A statement of the Holding Company's interest in the Subsidiary in accordance with Section 212(a) of the Companies Act 195 is enclosed. DIRECTORS Smt. Sushila Joshi and Mr. Laxminivas Sharma, Directors retire at the meeting and offer themselves for reappointment. AUDITORS M/s H.K. Aparanji Chartered Accountants, Auditors of the Company retire at the Annual General Meeting and being eligible offer themselves for the reappointment. The Qualification given in the Auditors report are self explanatory. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION A) Optimum utilisation of machine capacity is being adhered to. Speed of Hose cutting machine doubled in order to augment optimum utilisation and for better cutting efficiency. B) Technology absorption: The Manufacturing Process does not envisage any special technology absorption. C) Foreign Exchange and Outgo: The relevant details are given in note to the accounts. EMPLOYEES PARTICULARS. Particulars of the employees pursuant to section 217(2A) of the Companies Act 1956, forms a part of this report. ACKNOWLEDGEMENT The Directors place on record their gratitude to the Govt., of Goa, Economic Development corporation Bank of Baroda, and all our customers. The Directors also wish to place on record their appreciation of whole hearted support of all the Employees, Vendors and Suppliers. The Future prospect of the Company is bright and it would be Company's endeavor to merit the confidence of 11th shareholders and Investors. FOR AND ON BEHALF OF BOARD OF DIRECTORS MADHUSUDAN JOSHI Managing Director Place : Goa Dated : 30th August, 1997.