RENCO GEARS LIMITED
Your Directors have pleasure in presenting this Eighth Annual Report
together with the audited Statement of Accounts of the Company for the year
ended 31st March, 1995.
Your Directors are pleased to recommend payment of dividend, subject to
deduction of tax at source, at the rate of 30% p.a., absorbing an amount of
Rs. 149.86 Lacs. The dividend will be paid after the same is approved at
the Eighth Annual General Meeting.
During the year under review, your Company has achieved an excellent sales
turnover of Rs. 6477.27 Lacs with an increase of 164.6% over the previous
year's turnover, resulting into a Profit before Taxation of Rs.919.07 Lacs
as increased by 95.46% over the previous year, due to improved productivity
and better sales realisation.
Your Company has an ambitious plan of expansion with a total outlay of Rs.
4850 Lacs. At present, your Company manufactures Reduction Gears upto 30 HP
capacity and it is proposed to set up facilities to manufacture 23000 pcs
per annum of Reduction Gears upto 500 HP capacity, which is expected to
meet demands of Reduction Gear Box of wide range of end users. The Company
has already purchased and installed the machinery worth Rs.3096 Lacs
towards this project and successfully started the commercial production.
Your Company is once again entering the capital market with Rights cum
Public Issue aggregating to Rs. 3194 Lacs to part finance the expansion
project on hand, for which necessary approvals/clearances from SEBI and
other authorities have already been received. The Rights cum Public Issue
is likely to open in the month of July, 1995. The IDBI has also sanctioned
a term loan of Rs.1000 Lacs for the purpose.
During the year, your Company has not invited/accepted any deposit within
the meaning of Section 58A of the Companies Act, 1956 and the rules made
Shri Saurabh N Soparkar, Director of the Company is due to retire by
rotation at the ensuing Annual General Meeting and is eligible for re-
PARTICULARS OF EMPLOYEES
A Statement showing particulars of employees required to be furnished under
Section 217 (2A)of the Companies Act,1956, read with the Companies
(Particulars of Employees) Rules, 1975 is annexed to this Report as
PARTICULARS OF CONSERVATION OF ENERGY ETC
Particulars with respect to Conservation of Energy as per Section 217 (1)
(e) of the Companies Act,1956 read with the Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988 and forming
part of the Directors' Report for the year ended 31st March, 1995, are
annexed to this Report as Annexure-B.
M/s. Bharat N. Pandya & Associates, Chartered Accountants, Auditors of the
Company retire at the ensuing Annual General Meeting and being eligible
offer themselves for re-appointment.
The observations of the Auditors read with the Notes on Accounts are self
Your Directors express their sincere thanks for the co-operation and
assistance received from Financial Institutions viz. GSFC, GIIC, IDBl,as
also Punjab National Bank. Your Directors also express their gratitude to
the Investors, Employees at all levels, Marketing agents and Consumers of
the Company for their valuable support and continued confidence reposed in
ANNEXURE TO THE DIRECTORS' REPORT
Information as required under the Companies (Disclosure of Particulars in
the Report of Board of Directors) Rules, 1988.
A. CONSERVATION OF ENERGY
The Company is committed to conserve the energy mainly Electricity. For
this purpose the Company has adopted various measures and techniques which
include improvements in manufacturing process, changes in the dies & tools
B. TECHNOLOGY ABSORPTION
The Company is always keen to make changes in the dies and tools in order
to shorten the manufacturing time of its products which ultimately results
into savings in Electricity Consumption.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO
During the year under consideration, there is no foreign exchange earnings or outgo.
Form of disclosure of particulars with respect to conservation of energy:
A. POWER 8 FUEL CONSUMPTION
1. Electricity (Purchased)
Units consumed 1213784 809141
Total Amount (Rs., 3412249 2322442
Rate per unit (Rs.) 2.74 2.81
2. Coal NIL NIL
3. Furnace Oil NIL NIL
B. CONSUMPTION PER UNIT OF PRODUCTION
Electricity per piece of
Drop Box Clutch Sets 3.33 3.07
By Order of the Board
Chairman & Mg. Director
Place : Ahmedabad
Dated : 20.06.1995