TINNA OVERSEAS LIMITED
Your Directors present the Eleventh Annual Report and audited accounts for
the financial year ended 31st March, 1998.
REVIEW OF OPERATIONS
During the year under review, the Company could achieve a level of total
income to the tune of Rs.1573.64 lacs and incurred a net loss of Rs.305.90
lacs. This has been attributed mainly due to the continued recession in TPR
exports which adversely affected the manufacturing, export turnover and
profitability of the Company, sluggish international market for commodities
leading to depletion in commodity export and forced sales of substantial
stock in the domestic market under depressed market conditions, high
incidence of financial charges resulted due to prolonged delays in
realisations of TPR compounds export receivables.
The Company has however, been able to steadily improve upon its performance
under export of footwear & is expected to do better in the current
In view of the continued recession in market for TPR compounds & little
chances of revival in the near future, the Company has suspended the TPR
compounds manufacturing operations at its Mumbai units.
The Company has also recently developed a Bitumen Modifier trade named
"TBN-Super' which substantially improves the vital properties of Bitumen
and in turn quality and life of roads, as evidenced by laboratory reports
of the Central Road Research Institute (CRRI), New Delhi Highways Research
Station, Chennai & Indian Institute of Technology, Kharagpur. The product
is being test launched & its commercial production is expected to commence
by the end of the current financial year. The launch of this product is
expected to more than offset the depletion in Company's performance
resulting out of suspension of TPR Compounds manufacturing operations. The
new product line would also enable the Company to make use of the existing
plant & machinery & other infrastructure of the TPR manufacturing
facilities at Mumbai.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
Information in accordance with the provisions of 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, as amended, regarding
conservation of energy, technology absorption & foreign exchange earnings &
outgo is given in the Annexure forming part of the Report.
As required under Section 212 of the Companies Act, 1956, the audited
statements of accounts alongwith the Reports of the Board of Directors of
Tinna Finex Ltd. (earlier known as Tinna Finlease Ltd.), Tinna Shipping &
Warehousing Ltd. and their respective Auditors' Reports thereon for the
year ended 31st March, 1998 are annexed.
The Company has not accepted deposits from the public. Hence, the
provisions of Section 58A of the Companies Act, 1956 and the rules made
under the Companies (Acceptance of Deposits) Rules, 1975, as amended, with
regard to the deposits accepted from the public are not applicable to the
M/s RAWLA & CO., Chartered Accountants, New Delhi, retire at the conclusion
of the ensuing Annual General Meeting and being eligible, offer themselves
With reference to the observations made by the Auditors in their report,
the Directors with to report that further efforts are being made to adopt
new/improved systems of accounting/recording/reporting.
PARTICULARS OF EMPLOYEES
The Company has not paid any remuneration attracting the provisions of
Section 217 (2A) of the Companies Act, 1956 read with the Companies
(Particulars of Employees) Rules, 1975 as amended. Hence, no information
is required to be appended to this Report in this regard.
Shri Kasturi Lal Mehta has been relieved from the Directorship/Whole time
Directorship of the Company w.e.f. 1st April, 1998. However, he has again
been inducted as an Additional Director w.e.f 30th Sept., 1998 Shri Hemant
Kumar Sekhri resigned on 1st April, 1998. The Board places on record its
appreciation for the valuable guidance received from Shri Kasturi Lal Mehta
& Shri Hemant Kamar Sekhri during their tenure as Director of the Company.
Shri Sat Paul Chopra and Shri Bhupinder Kumar retire by rotation and being
eligible offer themselves for re-appointment.
PROMISE Vs PERFORMANCE
(Rs. in Lacs)
S.No. PARTICULARS PROJECTED ACTUALS
1. Turnover 9200.00 1503.44
2. Net Profit/(Loss) 1928.04 (305.90)
The reasons for variation are as under:
a. Continued recession in export of TPR compounds forcing suspension of
TPR manufacturing operations leading to substantial reduction in export
turnover and profitability.
b. Sluggish international market for commodities leading to forced-sales
of substantial stock in the domestic market under depressed market
c. Prolonged delays in realisation of TPR compounds export receivables due
to recession in international market resulting in unduly high incidence of
Your Directors wish to place on record their appreciation of the assistance
and co operation extended to the Company by the Banks/Government
Authorities and Other Agencies. The Directors also thank all the employees
of the Company for their valuable services and continued support during the
For and on behalf of the Board
Place : New Delhi
Dated : 28th Nov., 1998.
ANNEXURE TO THE DIRECTORS' REPORT
Information as per Section 217 (1)(e) 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 on 31st March, 1998.
A. CONSERVATION OF ENERGY
(a) Energy conservation measures taken : The imported & indigenous
machinery is of latest technology and conserving energy to the maximum.
(b) Additional investments and proposals, if any, being implemented for
reduction of consumption of energy : During the year the Company has made
only marginal additions in the machinery.
(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
machines used by the Company are of latest technology and conserving energy
to the maximum. The Company further continues to improve productivity by
employing trained manpower for efficient utilization on machinery.
(d) Not applicable.
B. FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT OF TECHNOLOGY
1. RESEARCH & DEVELOPMENT (R & D)
(a) Specific areas in which R&D is being carried out by the Company :
Improvement of Samples/Models & Convenient Shoes for export market is being
continuously undertaken in R & D Department.
(b) Benefits derived as a result of above R & D.
- New models developed are of better quality.
- This has resulted in reduction in cost.
(c) Future plan of action : Continuous efforts are being made to improve
the quality and reduce the cost so as to expand our export market.
(d) Expenditure on R & D : The Company incurred Rs. 24.14 lacs on R & D
during the year.
2. TECHNOLOGY ABSORPTION, ADAPTATION & INNOVATION
(a) The Company is using latest technology/machinery. Further the Company
interacts with its foreign buyers for product/model improvement.
(b) Benefits derived as a result of the above efforts e.g. product
improvement, cost reduction, produce development, import substitution etc.:
The results are encouraging. Use of latest developed techniques has enabled
the Company to improve quality of Shoes/Shoes upper and productivity of
(c) Not applicable.
C. FOREIGN EXCHANGE EARNINGS & OUTGO
1. Activities relating to exports, initiatives taken to increase exports,
development of new export markets for products and services, and export
plan : The Company is mainly exporting to European countries. Middle east
& far east countries. The Company has also been making serious efforts to
expand and diversity the export market in view of the liberalised policies
of the Government.
2. Total Foreign Exchange Used and Earned
(Rs. in lacs)
(a) Total Foreign Exchange Used : 269.96
(b) Total Foreign Exchange Earned : 952.42
For & on Behalf of the Board of Directors
for Thinna Overseas Limited
Place : New Delhi
Dated : 28th Nov., 1998.