MAHENDRA CEMENTS LIMITED
Your Directors have pleasure in submitting the Fourteenth Annual Report and
the Audited accounts of the Company for the year ended 30th September,
The Indian Cement Industry passed through a very difficult year. The Prices
were under severe pressure. This was largely because of a demand-supply
mismatch. At the same time, the Industry was burdened with increase in
However, during the year under review the turnover of your company reached
at level of Rs.352.04 lacs as against Rs.590.96 in the previous year. The
Net Loss before interest and depreciation comes to Rs.230.31 lacs as
against loss of Rs.84.29 lacs in the previous year, due to loss of
production as compared to previous year.
The Company is contemplating that demand of cement would be increased in
next years since 20 Lakhs additional dwelling units will be built up as per
finance budget 1998.
EXTENSION OF FINANCIAL YEAR
The Board of Directors of the company, with the permission of Registrar of
Companies M.P. extended the Financial year 1997-98 ending on 31st March,
1998 upto 30th September, 1998. Hence the financial year 1997-98 will be of
The Shares of the company are listed on MP (Regional) Mumbai & Delhi Stock
Exchanges and the listing fees have been paid to be Stock Exchanges in time
except Delhi & MP Stock Exchange.
In view of the heavy losses your Directors are unable to recommend any
Dividend on Equity Shares for the year under review.
Mr. J.S.Bagga, Director of the Company retires by rotation & being eligible
offers himself for reappointment. During the year Mr. J.S.Bagga has
resigned from the Managing Directorship and Shri S.S.Arora from the
Directorship of the company. However, in place of Shri J.S.Bagga Mr.Bharat
Singh Bagga has been appointed as Managing Director. However Mr. J.S.Bagga
will continue as director of the company. The Board has also appointed Shri
Sunder Singh Bagga as Executive Director and Shri Harmendra Singh Bagga as
additional director of the company. The Board recommends their
M/s Rakesh Narendra Kumar & Co., Chartered Accountants, Auditor of the
Company retire at the ensuing Annual General Meeting and are eligible for
REFERENCE OF BIFT
As the networth of your company has been fully eroded, your directors have
formed an opinion to make a reference to Board for Industrial & Financial
Reconstruction (BIFR) under section 15(1) of Sick Industrial Companies
(Special Provision) Act, 1985.
The Auditors in their report have referred to the notes forming part of
accounts, which are self explanatory.
Your Company has not accepted any deposits from the public during the year.
PARTICULARS OF EMPLOYEES
None of the employees of the Company is covered under the provision of
Section 217(2A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Rules, 1975.
PARTICULARS OF CONSERVATION OF ENERGY ETC.
Information regarding conservation of energy etc., as per provisions of
Section 217(1)(e) of the Companies Act 1956 are set out in the statement
annexed hereto forming part of this report (Annexure-A).
Your Directors are happy to report that the Industrial relations continued
to be cordial during the year under review. Your Directors wish to place on
record their appreciation for contribution made by the employees at all
Your Directors take this opportunity to offer their sincere thanks to the
various department of Central and State Governments, Financial
Institutions, Banks, Customers and Suppliers for their continued valuable
assistance and support. Your Directors also wish to place on record their
sincere appreciation of dedicated efforts by officers, staff and workers of
the Company at all levels.
For and on behalf of the Board
Date : 2nd November, 1998