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L D Textile Industries Ltd.

BSE: 502954 Sector: Industrials
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L D Textile Industries Ltd. (LDTEXT) - Director Report

Company director report

L.D. TEXTILE INDUSTRIES LIMITED ANNUAL REPORT 1999-2000 DIRECTORS' REPORT To, The Members 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) shortly. OPERATIONS 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. AUDITORS' REPORT 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 further elucidation. 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 2001. DIRECTORS 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 December 1999. 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. PERSONNEL 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 OUTGO 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. AUDITORS 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. APPRECIATION 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 MUMBAI 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 Generators. 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 reducing costs. 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 innovation (NIL) 2. Benefits derived as result of the above efforts.(NIL) 3. Information regarding technology imported during the last 5 years.