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Renco Gears Ltd.

BSE: 526129 Sector: Engineering
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Renco Gears Ltd. (RENCOGEAR) - Director Report

Company director report

1995 RENCO GEARS LIMITED DIRECTORS' REPORT 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. DIVIDEND 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. OPERATION 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. EXPANSION 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. FINANCE 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. DEPOSITS 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 thereunder. DIRECTORATE 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- appointment. 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 Annexure -A. 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. AUDITORS 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 explanatory. APPRECIATIONS 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 the Company. 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 etc. 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 A Form of disclosure of particulars with respect to conservation of energy: 1994-95 1993-94 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 Gautamkumar Atmaram Chairman & Mg. Director Place : Ahmedabad Dated : 20.06.1995