MIKADO TEXTILE INDUSTRIES LIMITED
ANNUAL REPORT 1998-99
The Directors are pleased to present their Sixteenth Annual Report together
with the audited Statement of Accounts for the year ended 31 st March 1999.
During the year under review, the Company's operations continued to be
under tremendous pressure of financial shortage. The Turnover has reduced
substantially to Rs. 6.12 Crores for the year under review as compared to
Rs. 19.85 Crores for the year 1997-98. The Operational Loss for the year
1998-99 amounted to Rs. 94.18 Lacs as against Rs. 34.12 Lacs for the year
1997-98. After providing Rs. 159.48 Lacs towards Depreciation (Previous
Year Rs. 153.99 Lacs), the Net Loss for the year 1998-99 amounted to Rs.
854.03 Lacs as compared to Rs.805. 14 Lacs for the year 1997-98.
The Company has already submitted business plans to IDBI for revival.
In view of the losses incurred during the year under review, your Directors
regret their inability to recommend any dividend for the year ended 31 st
SICK INDUSTRIAL COMPANY
In reply to the Company's report under Section 23 of the Sick Industrial
Companies (Special Provisions) Act, 1985 read with Regulation 36 of the
Board for Industrial arid Financial Reconstruction Regulations, 1987, to
the Board for Industrial and Financial Reconstruction (BIFR), the said
authority declared the Company as a Sick Industrial Company vide its Order
dated 04/02/98. In accordance with the said order, a scheme for the
rehabilitation of the Company is under preparation by the Industrial
Development Bank of India, the Operating Agency. However appeal by SICOM
and Banks was filed before Honourable AAIFR. Honorable AAIFR has referred
the matter to BIFR for review.
The case was heard by BIFR on 1 st July, 1999 and directed the operating
agency to further clarifications and report.
Mr. B. K. Modi and Mr. K. C. Chamria, Directors retire by rotation at the
ensuing Annual General Meeting and being eligible, offer themselves for re-
Employees relations remained satisfactory during the year under review. The
Directors take this opportunity to record their appreciation of the
continuous support and contribution from all the employees of the Company.
PARTICULARS OF EMPLOYEES
Particulars as per sub-section (2A) of section 217 of the Companies Act,
1956 read with the Companies (Particulars of Employees) Rules, 1975 which
should be forming part of the Directors' Report for the year ended 31st
March 1999, being nil, have not been furnished.
CONVERSATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
Information pursuant to Section 217(1) (e) of the Companies Act, 1956 read
with Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988 is given in the Annexure to this Report.
M/s. Gupta Shyam & Co., Chartered Accountants retire as the Auditors of the
Company, and being eligible, offer themselves for re-appointment.
The observations made by the Auditors of the Company in their report
regarding the Company's operations for the year ended 31st March 1999 read
with the Notes on Accounts, are self explanatory and do not require any
The Company has taken appropriate and effective steps to meet any possible
disruption in any hardware, network components and third party software
products etc., due to Y2K impact. The Company does not anticipate
significant materials costs which may in the opinion of the Board of
Directors, materially affect Company's profitability given Y2K Compliance
Your Directors would like to place on record their gratefulness for the
excellent co-operation received from IDBI, SICOM. Canara Bank and State
Bank of Indore. We also thank the Shareholders for reposing their
confidence in the Company. Your Directors would also like to place on
record the appreciation for the co-operation received from the members of
the staff for the smooth operation of the Company.
By order of the Board of Directors
Place: Mumbai V. K GADIA S. K MODI
Dated: 26th October, 1999. Director Director
ANNEXURE TO DIRECTORS' REPORT STATEMENT SHOWING PARTICULARS TO THE
COMPANIES (DISCLOSURE OF PARTICULARS IN REPORT OF BOARD OF DIRECTORS )
1. ENERGY CONSERVATION
a) i) Power losses have been reduced by timely changing / replacing /
maintaining electric equipments / wiring / spares etc.
ii) Energy saving methods have been used for lighting and general electric
equipments to save power.
b) Additional investments and proposals, if any have been implemented for
reduction of consumption of energy.
i) Update repair and maintenance
ii) Training to staff and worker
c) The effect of steps taken for conversation of energy can not be
calculated, however overall reduction in consumption of energy i.e.
electricity and fuel oils in general in all units having favourable impact
on the cost of production.
II. TECHNOLOGY ABSORPTION
1. Specific areas in which 1) Process modification to R & D
carried out by the company achieve quality improvement,
company waste reduction & safety in the
2) Continous developments of
new designs and pattern in
2. Benefits derived as a a) Control on wastage & better
results of the above safety to workers.
R & D b) Customer satisfactions
3. Further Plan of Action The R & D team continue
support the development of
new products & reduction of
cost of utilities.
4. Expenditure on R & D
a) Capital Rs. Nil
b) Recurring Rs. Nil
c) Total Rs. Nil
d) Total R & D Expenditure as a
percentage of total turnover Rs. Nil
TECHNOLOGY ABSORPTION, ADAPTATION
AND INNOVATION Rs. Nil
III. FOREIGN EXCHANGE EARNINGS AND OUTGO:
a) Activities relating to export, Company is making
development of new export efforts to explore the
markets for products and overseas market for
services and export plans their products
b) Total Foreign Exchange Used Rs. NIL
Rs. 0.47 Lac)
Earned Rs. Nil
By order of the Board of Directors
Place: Mumbai V. K. GADIA S. K. MODI
Dated: 26th October. 1999. Director Director