JAI MATA INDUSTRIES LIMITED
ANNUAL REPORT 1998-99
To the members,
The Directors take pleasure in presenting the Seventh Annual Report on the
business and operations of the Company together with the financial
statement of accounts for the financial year ended 31st March, 1999.
The year under review has been a difficult period for Indian industry and
particularly spinning industry as their was low cotton production during
the year. The prices of raw materials and finished goods witnesses wide
ranging fluctuations. The price of finished goods is lower than the cost of
raw cotton. During the year your company incurred a cash loss of Rs. 45.27
lacs which was further increased to a loss of Rs. 1.26 crores after
providing for depreciation of Rs. 80.94 Lacs.
Considering the above, your directors adopted various measures to introduce
improved business processes to control costs and enhance efficiency. The
measures introduced have started yielding results and your directors are
hopeful of improved financial results to the company during the current
The production during the year also fell marginally to 2614 MT from 2856 MT
during the year ended March 31, 1999. The Company could achieve a sales of
Rs. 1501.26 lacs as against the previous years sales of Rs. 1518.74 lacs.
2. INDUSTRIAL RELATIONS
Your directors are happy to report that throughout the period under review
the relationship between the management and labour remained harmonious and
cordial. Efforts are being made, on a continuous basis, towards creating
awareness amongst the employees on the needs of business to enhance
productivity, adaptation to changing technologies.
Mr. Bodh Raj Arora and Mr. Chander Mohan Marwah, directors of the Company,
retires by rotation at the ensuing annual general meeting and being
eligible have offered themselves for reappointment.
Lt. Gen Jagjit Singh Aurora and Mr. Baldev Pasricha resigned from office of
director during the period and your board avails of this opportunity to
place on record its appreciation for the advice and services rendered by
them during their tenure as director of the Company.
M/s B Bhushan & Co., Chartered Accountants,New Delhi, Auditors of the
Company, hold office until the conclusion of the ensuing Annual General
Meeting. The said M/s B Bhushan & Co. have signified their willingness to
be reappointed and have confirmed their eligibility for the same.
5. FIXED DEPOSITS
The Company has not accepted any fixed deposits during the year.
6. LISTING AGREEMENT REQUIREMENT
The equity shares of the Company is listed on Delhi, Mumbai, Jaipur and
Ludhiana Stock Exchanges. The Listing fee payable to the various stock
exchange are as follows:
7. Y2K COMPLIANCE
The Company has taken appropriate and effective steps to be Y2K complaint.
The expenditure expected to be incurred in it shall not be significant.
8. INFORMATION PURSUANT TO COMPANIES (DISCLOSURE OF PARTICULARS IN THE
REPORT OF BOARD OF DIRECTORS) RULES, 1988.
The particulars required to be disclosed under Section 217(1)(e) of the
Companies Act, 1956 in respect of energy conservation, technology
absorption and foreign exchange earnings and outgo are as follows:
CONSERVATION OF ENERGY
Priority has been accorded to conservation of energy by establishing
controls at various levels of production and measures for optimising
consumption of the same.
RESEARCH AND DEVELOPMENT OF TECHNOLOGY
The Company has relied on indegenous technology rather than employing
Foreign exchange earned NIL
Foreign exchange outgo 7,28,963
Your directors wish to express their appreciation for the cooperation and
assistance received from the bankers, financial institutions and other
government authorities for its smooth operations. Your directors also wish
to place on record their appreciation for the devoted services by
executives, officers, staff and workers of the Company and its
shareholders, who have all been a source of strength to the Company.
for and on behalf of the Board of Directors
Place : New Delhi Bodh Raj Arora
Date : May 31, 1999 Chairman