ANNUAL REPORT 1998-99
PREMIUM INDUSTRIES INDIA LIMITED
REPORT OF THE DIRECTORS (Accounting Year 1998-99)
The Directors present to the Members the Annual Report together with the
Statement of Accounts of the Company for the year ended 31st March,1999 and
the Auditors Report thereon:
The results reported above relate to the Company's Coke unit only. The year
under report i.e. the financial year 1998-1999 like the previous financial
year 1997-1998, remaind at the state of stagnancy of economic activities in
the country. Due to the continuation of the state of fall in the activities
of the industries consuming the products of your company no improvement in
capacity utilisation and loss of production and sale could be effected. In
addition the year 1998-99, did not witness reduction in the higher price of
raw coal and also the suppling remaind inadequate and irregular. The other
factor, which is also adversely affecting the operation of your company, is
uneven competition from imported coke, equivalent in quality and cheaper in
price, dumped by several countries, taking advantage of the Governments
policy of Liberalisation of import. The any change could be witnessed once
a permanent government is elected. Your Directors, therefore, continued to
concentrate on cost control measures to combat the effect of the negative
factors. The company, however, maintained its tradition of producing and
supplying superior quality products. Although no significant improvement is
noticed as yet,your Directors sincerely hope that the industrial activities
will pick up,so that there will be allround economic development and your
company s sales and profit will improved.
PUBLIC ISSUE OF EQUITY SHARES:
Calls Receivable as on 31st March,1998 remained unchanged at Rs.
Your Directors reported last year that despite a satisfactory commencement
of the installation of the Cement Plant its progress was impeded by the
failure on the part of the Contractors, M/s. Quality Fabricators to
continue to supply the plants and machineries required for completing the
installation, and that the matter was sub-judice. The matter continues to
be sub-judice and hence, the Company is unable to make any progress.
In course of the last few years the Cement Industry in the country has
suffered a considerable set back owing to a variety of reasons. Stagnancy
of economic activities has seriously affected infrastructure and real
estate development causing slump in the building activities and demand for
Your Directors have reviewed the situation and are of the considered view
that the Cement Project is not an economically viable proposition in the
present situation and that there are very little indications of any change
in the situation in the near future. In order to sustain and improve the
profitability of the Company. Your Directors are exploring other areas of
investment and industrial activities. Consent of the Members for the
proposed change will be sought at the ensuing Annual General Meeting.
Considering the poor trading results of the Company during the year under
review your Directors are of the view that it would not be prudent to
recommend any dividend for the year ended 31st March,1999.
Your Directors fervently hope that in the near future the industrial
economic situation in the country will improve an the Government will take
suitable policy for distribution, pricing and protection for supply of
indigenous coal which will benefit your Company's operations. Your
Directors also hope that a suitable alternative investments area will be
identified to ensure the growth and profit prospects of your Company.
During the year under report,the Company has not accepted fixed deposits
under the Companies (Acceptance of Deposits) Rules, 1975 from the
shareholders and the public. As on the date of this report, there is
therefore, no matured and/or unclaimed deposits.
PARTICULARS OF EMPLOYEES:
There are no employees in respect of whom particulars are required to be
furnished under Section 217(2A) of the Companies Act,1956 and the Rules
CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
AND OUTGO :
A Statement giving information regarding conservation of energy,technology
absorption and foreign exchange earnings and outgo is annexed hereto and
forms a part of this Report.
Shri Pramod Kumar Sachdeva was appointed an Additional Director with effect
from 15th July,1999, pursuant to section 260 of the companies Act,1956 (the
Act) Shri Sachdeva hold office till the Annual General Meeting an being
eligible, offers himself for re-appointment.
Shri Mahadev Agarwalla has tendered resignation from the Board and his
resignation was accepted by the Board on 20th July,1999 with regret. The
Board place on record its deep appreciation for the wise counsel and
guidance given by Shri Mahadev Agarwalla throughout the period he held the
office of the Chairman of the Board.
The term of office of the Company's Auditors, Messrs. J. Gupta &
Co.,Chartered Accountants,12,Waterloo Street, Calcutta- 700 069 will expire
at the conclusion of the ensuing Annual General Meeting and they, being
eligible, offer themselves for re-appointment. They have furnished a
certificate to the effect that the proposed reappointment, if made, will be
in accordance with Section 224(1B) of the Act.
Your Director sincerely hope to make all Software & Hardware used for
financial and other operations Y2K compliance at the earliest.
Your Directors are pleased to place on record their thanks, to the
Company's shareholders,customers,supplier bankers and all benefactors of
the Company. Your Directors also wish to place on record their appreciation
for the devoted service rendered by the employees of the Company.
BY ORDER OF THE BOARD
M. P. RITOLIA R. K. JALAN
Director Managing Director
Place : Calcutta
Date : 23rd day of August,1999.
ANNEXURE TO DIRECTORS' REPORT:
INFORMATION UNDER SEC.217(i)(e) OF THE COMPANIES ACT,1956 READ WITH
COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS)
RULE,1988,FORMING PART OF THE DIRECTORS REPORT FOR THE YEAR ENDED 31ST
A. CONSERVATION OF ENERGY:
a) Energy conservation measures taken:
After improving the working process by modernisation, the heat wastage has
reduced. The Company has been able to raise the temperature of the ovens
improving the quality of the product. At present heat balance has
stabilised. The Company do not propose to disturb it till further studies
b) Additional investment & Proposals, if any, being implemented for
reduction of consumption of energy:
Further investment at present not required.
c) Impact of the measures at (a) & (b) above for reduction of energy
consumption and consequent impact on the cost of production of goods:
The measures taken as detailed above have resulted in saving of energy as
well as cost of production.
d) Total energy consumption and energy consumption per unit of production
as per Form A.
Not applicable as the Company is not specified industry as per schedule.
B. TECHNOLOGY ABSORPTION:
i) RESEARCH & DEVELOPMENT:
The Company is continuously engaged in R & D activities and taking all care
and steps to see that there is minimum wastage of raw materials, power and
for protecting environment.
ii) TECHNOLOGY ABSORPTION, ADAPTION & INNOVATION:
The latest technology has been/is being adopted in various ways for
improving productivity and product quality and reducing the consumption of
scarce raw materials and energy.
C FOREIGN EXCHANGE EARNINGS AND OUTGO:
The information on exchange earnings and outgo : Nil.