ANNUAL REPORT 1999-2000
MONTARI LEATHER LIMITED
Your Directors have pleasure in presenting the 7th Annual Report and
Audited Accounts for the year ended 31st March, 2000.
During the year the Company has registered a loss of Rs.1317.72 lacs,
including finance charges of Rs. 903.05 lacs and depreciation of Rs. 140.59
lacs. After considering accumulated loss of Rs. 5167.42 lacs, total loss
comes to Rs. 6485.14 lacs.
IDBI the operating agency has submitted a draft rehabilitation scheme to
BIFR and the approval for the same is awaited.
The scheme envisages the induction of Rs. 21.5 crores in order to repay the
long term debt within the needs of the company.
Reliefs are also proposed from IDBI and debentureholders. Once the scheme
is approved th Company will start functioning smoothly.
Mr. P.V. Rao, Nominee Director IDBI has been withdrawn from the Board by
IDBI, Debenture Trustee, Vide IDBI letter dated 5th June, 2000. Your
directors extend their sincere appreciation to Mr. P.V. Rao for the
valuable guidance extended to the Board during his tennure.
Dr. Bhai Mohan Singh, and Bhai Manjit Singh Directors retire by rotation
and are eligible for re-appointment.
M/s. Walker, Chandiok & Co., Charted Accountants, the Auditors of the
Company, hold the office until the conclusion of the ensuing Annual General
Meeting. The Company has received a- certificate from them to the effect
that their appointment, if made, by the company for the year 2000- 2001
will be within the limits prescribed under section 224(1 B) of the
Companies Act,1956. The Board of Directors recommends their re-appointment.
Notes to accounts referred to in the Auditors Report are self explanatory
and, therefore, do not call any further comments.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
As required by the Companies (Disclosure of Particulars in the Report of
Board of Directors) Rules, 1988 the relevant data pertaining to
Conservation of Energy, Technology Absorption and Foreign Exchange Earnings
and Outgo is Annexed to and forms an integral part of the report.
PARTICULARS OF EMPLOYEES
The company has not paid any remuneration attracting the provisions of
Companies (Particulars of Employees) Rules, 1975 read with Section 217 (2A)
of the Companies Act, 1956. Hence, no information is required to be
appended to this report in this regard.
ADDITIONAL INFORMATION - BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL
Information pursuant to Department of Company Affairs Notification dated
15th May,1995, relating to the Balance Sheet Abstract and Company's General
Business Profile is given in the Annual Report for your information.
The Company continues to receive the necessary support and co-operation
from IDBI and the Consortium of Bankers led by State Bank of Travancore.
Your Directors place on record their thankfulness and sincere appreciation
for the same.
Your Directors would also like to place on record their sincere
appreciation for the whole hearted support and continued co-operation
received from Domestic and Foreign associates, Suppliers, Distributors and
various Government agencies and other concerned agencies during the year
I also wish to place on record my sincere thanks and appreciation for the
wise counsel, guidance and co-operation extended by the colleagues on the
Board. l am thankful to all officers and staff at all levels for their hard
work and dedication.
For and on behalf of the Board
New Delhi Dr. Bhai Mohan Singh
1st December, 2000 Chairman
MONTARI LEATHER LIMITED
ANNEXURE TO THE DIRECTORS' REPORT
DISCLOSURES UNDER SECTION 217(1) (e) OF THE COMPANIES ACT, 1956 READ WITH
COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS)
I. CONSERVATION OF ENERGY
(A) Energy conservation measures taken:
(i) Need based lighting requirements of the plant was reassessed and
lights, fans and airconditioners were disconnected, wherever found
(ii) Enough loading of work on all machinery stations was ensured to
optimise the utilisation of energy generated by boiler. This was achieved
by introduction of innovative production planning systems.
(B) Additional Investments & Proposals, if any, being implemented for
reduction of consumption of energy:
(i) Continuous training of workers in material handling areas and
equipments at the tannery and training of workers on handling the closing
and lasting conveyors at the shoe plant has resulted in smooth and better
flow of operations, thereby causing reduction in consumption of energy.
(C) Impact of the measures at (A) and (B) above for reduction of Energy
Consumption and Consequent impact on the cost of production of goods.
The above measures will help in reducing power & fuel consumption and
consequently lower cost of production of goods.
(D) Total energy consumption and energy consumption per unit of production
as per Form A of Annexure in respect of Industries sPecified in the
II. TECHNOLOGY ABSORPTION
Research and Development:
III. FOREIGN EXCHANGE EARNING AND OUTGO
(Rs. in Lacs)
Foreign exchange used and earned:
Foreign exchange: used 63.25
: earned 404.56