L.D. TEXTILE INDUSTRIES LIMITED
ANNUAL REPORT 1999-2000
L.D.TEXTILE INDUSTRIES LTD.
The Directors have pleasure in presenting the Thirtyfifth Annual Report and
the Audited Statement of Accounts for the year ended 31st March, 2000.
Since the Net Worth .of the Company had become negative, your Company had
become a "Sick Industrial Company" in pursuance of clause (0) of Sub-
section (1) of Section 3 of the Sick Industrial Companies (Special
Provisions) Act. 1985, and accordingly the Company had made a referance to
the Board for Industrial and Financial Reconstruction (BIFR). Subsequently
by an order dated : 21st August, 2000. The Board for Industrial and
Financial Reconstruction (BIFR) has declared the Company a Sick Industrial
Company in terms of section 3 (1) (0) of the Act, 1985.
The Company shall be submitting rehabitation proposal to operating agency
as per direction from the Board of Industrial and Reconstruction (BIFR)
The performance of the Company during the year under review continued to be
far from satisfactory. The general recessionary trend in the economy
continued to affect adversely the entire Industrial Sector including
Textile and Synthetic Yarn Industry. Adverse liquidity condition, high
interest rates, increase in electricity bills, wages and input costs had
consequential impact on the production as a result the Company could
operate only at 50% capacity.
In view of the losses, your Directors express their inability to recommend
any dividend on Equity shares for the year.
The Auditors in their report have referred to the notes forming part of the
accounts. The said notes are self-explanatory and do not require any
APPOINTMENT OF COST AUDITOR
Pursuant to the provisions of section 233B of the Companies Act, 1956,
Company has appointed Shri Rohit J Vora, a Cost Accountant for conducting
the Cost Audit of the Company, for the Accounting year ended 31st March
Shri Tilakraj K. Mehra, Director of the Company will retire by rotation at
the 35th Annual General Meeting of the Company and being eligible offers
himself for re-appointment.
During the year Mr. Samir V. Mehra was appointed as an additional Director
of the Company vide Board special resolution dated : 16th December, 1999
and holds the post till the date of ensuing. The Company has received
notice u/s 257 of the Company Act, 1956 from a member proposing candidature
of Mr. Samir V. Mehra for the post of Directorship of tenure.
Shri V. V. Dave was withdrawn as Nominee of GIIC with effect from 16th
CUSTOMS AND EXCISE
During the year there was no material change in the status of pending
Customs Cases. As reported in the past regarding receipt of Show Cause
Notice from Excise Department for payment of Rs 790 Lacs for difference in
the rate of duty depending upon classification of Polyester Waste used in
manufacturing process in earlier years, no further development has taken
place during the year.
The Board wishes to express its deep appreciation of all the employees of
the Company for their contribution to the growth and working of the Company
during the year. A harmonious industrial relationship continued to prevail
in the organisation.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING AND
Information pursuant to Section 217(1)(e) of the Companies Act,1956 read
with the Companies (Disclosure of the particulars in report of the Board of
Directors) Rules, 1988 is given in the Annexure to the report.
PARTICULARS OF THE EMPLOYEES
The information in accordance with Section 217(2A) of the Companies
Act,1956 read with Companies (Particulars of Employees) Rules, 1975 is
given in a separate statement and forms part of this report.
You are requested to appoint Auditors and fix their remuneration at the
ensuing Annual General Meeting. The retiring Auditors M/s Rajendra & CO.,
Chartered Accountants, Mumbai are eligible for re-appointment.
Your Directors wish to place on record their gratitude to the Central &
State Financial Institutions and Banks for their valuable assistance,
continuous support and the confidence reposed in the Company during the
year under review. Thanks are also due to our customers and suppliers for
their valuable support.
For and on behalf of the Board of Directors
VIJAYKUMAR K. MEHRA
CHAIRMAN & MANAGING DIRECTOR
DATE : 27th November, 2000
ADDITIONAL INFORMATION AS REQUIRED UNDER THE COMPANIES (DISCLOSURE OF
PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES 1988
A) CONSERVATION OF ENERGY
a) The Company is striving continuously to conserve energy.
b) The Company is generating pollution-free electricity from Wind Turbine
c) Additional investment and proposals, if any, being implemented for
reduction of consumption of energy : NIL
d) Impact of the measures at (a) and (b) above for reduction of energy
consumption and consequent impact on the cost of production of goods -Helps
e) Total energy consumption and energy consumption per unit of production
as per Form A (Annexure)
B) TECHNOLOGY ABSORTION
Research and Development
At present the Company is not carrying out any research and development
activities and therefore, there is neither any expenditure on this head nor
any other benefit accrued from it. Plan for future action for Research &
Development is being worked out.
Technology absorption, adaptation and innovation.
1. Efforts in brief made towards technology absorption, adaptation and
2. Benefits derived as result of the above efforts.(NIL)
3. Information regarding technology imported during the last 5 years.