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Madras Hi-Tech Circuits Ltd.

BSE: 517304 Sector: Engineering
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Madras Hi-Tech Circuits Ltd
NSE 05:30 | 01 Jan Madras Hi-Tech Circuits Ltd

Madras Hi-Tech Circuits Ltd. (MADRASHITECH) - Director Report

Company director report

ANNUAL REPORT 1998-99 MADRAS HI-TECH CIRCUITS LIMITED DIRECTORS' REPORT Your Directors submit herewith the Tenth Annual Report of the Company along with Audited Accounts for the year ended 30th June 1999 and the Report of Auditors thereon As mentioned in the last year's Directors Report, the company was declared as a sick industrial, company in terms of Section 3 (1) O of the Sick Industrial Companies (Special Provisions) Act, 1985 by the Board for Industrial and Financial Reconstruction vide its order dated 25.6.98. ICICI was appointed as the Operating Agency (OA) under section 17 (3) of the Act, to examine the viability of the Company and formulate a scheme for its revival, if it was found viable. At the hearing held on 01.09.99 before BIFR, the Operating Agency apprised the Bench of the steps taken by the OA in carrying out the Order of the BIFR dated 25.6.98 and submission was made by OA that as the unit could not be revived, the disposal of assets would help the recovery of dues of the secured creditors. The Bench was also apprised that the Company has not been production since 1st June 1996. Directions have been issued by the Bench to the Operating Agency (ICICI) to convene a joint meeting with the financial institutions and submit the recommendations to the Board. The Financial Institutions have already communicated their decision to the BIFR. The,company has taken steps to comply with the borders of BIFR, DIRECTORS The Electronics Corporation of Tamilnadu Ltd. (ELCOT) has withdrawn the nominations of Mr. M. Madhavan Nambiar - IAS (Chairman) and Mr. V.N. Kittappa (Director) The Board has placed on record the services of Mr. M. Madhavan Nambiar - IAS (Chairman) and Mr. V.N. Kittappa (Director) during their tenure of office in the company. Mr. S. Gopinath Rao Director and Mr. S. Srinivasan Director, retire by rotation and are eligible for reappointment. AUDITORS With reference to the observations of the Auditors, in their report, the relevant issues in the financial note are explained below: (a) The Operating Agency viz the ICICI has submitted certain offers (received from various parties) to BIFR and also carried out valuation of the company's fixed assets. Pending finalisation of the proposal b)f BIFR, it is anticipated that significant loss on sale of assets, the quantum of which is not ascertainable at present and hence no adjustment has been made in the accounts. (b) No depreciation has been provided for plant and machinery for the last three years as the plant was not in operating during the period. (c) No provision has been made for interest aggregating Rs. 7,14,8,627 for the year payable oh secured loans and interest on unsecured loans aggregating Rs. 36,17,650 as the matter of settlement of dues is pending before BIFR. M/s. Karra & Co, Chartered Accountants, retires at the conclusion of the ensuring Annual General Meeting and are eligible for re-appointment CONSERVATION OF ENERGY The company does not fall within the list of industries specified in Schedule to Form A under Companies (Disclosure of particulars in the Report of the Board of Directors) Rules 1988. TECHNOLOGY ABSORPTION This is not applicable. as the company was not in production during the year. FOREIGN CURRENCY EARNINGS AND OUTGO NIL FIXED DEPOSITS The company has not accepted deposits from the public. EMPLOYEES The provisions of Section 217 (2 A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 are not applicable, as none of the employee were drawing the remuneration specified therein. For and on behalf of the Board K.S. LAKSHMINARAYANAN Place: Chennai S. GOPINATH RAO Date : 15.02.2000 Directors